Scientex Q1 net profit doubles to RM60.9 million

PETALING JAYA: Scientex Bhd saw its net profit for the first quarter ended Oct 31, 2015 (Q1FY16) double to RM60.85 million, from RM30.27 million in the previous corresponding quarter, on stronger demand for consumer packaging and affordable properties.
Revenue was up 27.7% to RM550.6 million, against RM431.07 million previously.
In a statement yesterday, Scientex said it recorded higher consumer packaging sales due to expanded production capacity of existing operations, as well as new contributions from the recently-acquired Scientex Great Wall (Ipoh) Sdn Bhd (formerly known as Mondi Ipoh Sdn Bhd).
“The strong profitability is the result of Scientex reaping the benefits of an enlarged production capacity in our consumer packaging operations, leading to enhanced operational efficiency and economies of scale,” its managing director Lim Peng Jin said.
“We are also witnessing an increasingly regional clientele, which bodes well for our future growth plans,” he added, saying the group is only halfway through its capital expenditure programme of RM300 million spanning three years from 2014 to 2016.
Lim also noted that the group is well poised to tap into the growing consumer packaging market in Southeast Asia.
“To this end, our newly constructed cast polypropylene (CPP) film plant is currently undergoing production trials and on track to commence operations by end-2015.
“This is a major milestone for the group, as we strive to become a major integrated supplier of consumer packaging films in the region,” Lim said.
Scientex’s manufacturing segment was the largest contributor to Q1FY16 revenue at RM392 million, up 22.4% from RM320.3 million a year ago.
Of the total manufacturing revenue, consumer packaging sales led growth with an increase of 44.8% to RM184.1 million from RM127.2 million previously, while industrial packaging sales rose 7.6% to RM207.9 million from RM193.1 million earlier.
Its exports made up 52.6% of consumer packaging revenue in Q1FY16, from 42.6% previously.
Meanwhile, Scientex said its property segment contributed the remaining RM158.6 million of the first quarter revenue, up 43.2% from RM110.8 million last year, due to strong take-up of recently launched projects and higher progress billings from projects in Kulai, Skudai, and Senai.
Its unbilled sales stood at RM632.2 million on Oct 31, which will be recognised until 2018.
Its shareholders approved the payment of a final dividend of 13 sen per share at its AGM yesterday, with ex-dividend and payment dates of Jan 7, 2016 and Jan 25, 2016 respectively.