Resilient Performance With Scientex Berhad’s Net Profit Jumping 24.3% In 3Q23

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Global packaging manufacturer and property developer Scientex Berhad (Scientex) reported a 24.3% jump in net profit for the third quarter ended 30 April 2023 (3Q23) to RM109.8 million compared to RM88.3 million in the previous corresponding quarter, driven by robust demand for affordable properties across its developments throughout several states in Malaysia.

Revenue maintained stable at RM997.1 million in 3Q23 versus RM993.8 million previously, as the strong property division performance helped offset challenges faced by the packaging division due to slower market demand globally, highlighting the resilience of its twin-core model.

Scientex Berhad CEO Lim Peng Jin said, “In 3Q23, our property division propelled our overall growth, driven by higher sales of affordable homes and healthy construction progress across our developments in Johor, Melaka, Negeri Sembilan, Selangor, and Penang. Leveraging our efficient Industrialized Building System (IBS) and extensive experience, we are well-positioned to meet the rising demand for affordable homes in Malaysia.”

“Meanwhile, our packaging division remains resilient in adapting to evolving global challenges. As a leading flexible packaging provider, we collaborate with major multinational brands to deliver innovative and sustainable solutions that support their long-term sustainability objectives. Furthermore, we continue to innovate and invest in value-added and sustainable product categories to capture growth opportunities. Our twin-core model has proven instrumental in driving sustainable growth, ensuring continued success in the markets we operate,” he added.

In 3Q23, the property division achieved 48.1% growth in revenue to RM361.7 million from RM244.2 million previously, on higher progress billings from on-going projects in Kundang in Selangor, Tasek Gelugor in Penang, and Pulai in Johor. This was complemented by robust demand for new launches in Kundang in Selangor, Seremban in Negeri Sembilan, and Durian Tunggal in Melaka.

As at 30 April 2023, ongoing development projects amounted to RM3.7 billion in gross development value, consisting mainly of affordable landed residential properties.

Meanwhile, the packaging division posted lower revenue of RM635.4 million compared to RM749.7 million previously, on moderated demand for packaging due to challenges in the external operating environment.

Group revenue for the nine-month period ended 30 April 2023 (9M23) grew 4.6% to RM3.0 billion from RM2.9 billion on higher contribution from the property development division. Group net profit rose 13.5% to RM323.2 million in 9M23 versus RM284.9 million previously.

The Group also declared an interim dividend of 5 sen per share in respect of FY2023, with ex-date on 5 July 2023 and payment date on 21 July 2023. The dividend payout will amount to RM77.6 million or 24.0% of 9M23 net profit.

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