SCGM FY2022 net profit dips 8.1% to RM30.9 million

 Food packaging manufacturer SCM Bhd reported 8.1% dip in net profit to RM30.9 million for the financial year ended 30 April 2022 (FY2022) versus RM33.6 million a year ago, despite 15.5% rise in total revenue to RM284.7 million from RM246.5 million previously.

The higher revenue was driven by sales in the food and beverage (F&B) packaging segment, which constituted RM245.8 million or 86.3% of FY2022 revenue. The segment posted 18.8% higher sales in FY2022 from RM206.9 million a year ago as consumers shifted their preferences to deliveries and takeaways after the onset of the Covid-19 pandemic.

Dato’ Sri Lee Hock Chai, Managing Director of SCGM Bhd said: “The Covid-19 pandemic had been a double-edged sword to our business. On one hand, our topline posted stellar performance from our F&B packaging segment.

On the other hand, FY2022 bottom line was weighed down by the fluctuating raw material prices as a result of supply chain disruptions. This happened in spite of our efforts in adjusting selling prices upwards.”

The Group declared a fourth interim dividend of 1.32 sen per share in respect of FY2022, which will be paid on 29 July 2022, with an ex-date on 14 July 2022.

Alongside the previously-paid first, second and third interim dividends of 2.00 sen, 1.70 sen and 1.40 sen in respect of FY2022, SCGM’s total dividend payout for FY2022 amounts to RM12.4 million or 40% of FY2022 net profit. SCGM has a dividend policy of distributing at least 40% of net profits to shareholders.

On 9 May 2022, SCGM announced that it had entered into a conditional share sale agreement with Tokyo-listed Mitsui & Co., Ltd. and FP Corporation to dispose 100% equity interest or 106,466,256 shares held in its only subsidiary, Lee Soon Seng Plastic Industries Sdn Bhd (LSSPI), for a total cash consideration of approximately RM544.38 million.

Upon completion of the proposed disposal of LSSPI to the Japanese parties, the Board of SCGM proposes to distribute part of the disposal consideration, amounting to approximately RM425.56 million, to all entitled shareholders of SCGM within nine months after the disposal.

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