KUALA LUMPUR: Scientex Packaging (Ayer Keroh) Bhd’s (formerly known as Daibochi Bhd) net profit for the third quarter ended April 30 (3Q22) was flat at RM10.3mil from RM10.26mil a year earlier.

       Its revenue for the quarter rose 38.2% to RM207.43mil against RM150.12mil achieved in the same period last year.

       The plastic packaging producer said the higher revenue was contributed by higher demand in both domestic and export sales. Exports as a percentage of group revenue rose to 47.8% compared to 42.7% in the preceding year's corresponding quarter.

       Despite the revenue growth, its operating profit in the current financial quarter dipped 6.2% to RM12.29mil compared to RM13.11mil in the preceding year's corresponding quarter.

       It said the reduction in operating profit was mainly due to increased cost of sales arising from higher overall material costs and freight costs caused by global supply chain challenges.

       For the first nine months to April 30, Scientex Packaging’s net profit fell 16.6% to RM31.8mil from RM38.14mil a year ago. Revenue, however, rose 24.4% to RM582.2mil from RM468.14mil previously.

       Commenting on its prospects, Scientex Packaging is cautiously optimistic about its prospects for the current financial year.

       It added that the ongoing global supply chain challenges and geopolitical uncertainties have led to volatility in the supply of raw materials, vessel delays and shortage of shipping containers resulting in elevated costs and longer production and delivery lead times to customers.

       “The group will continue working closely with its customers and supplier base to manage these operational issues and meet its commitments. In managing the Covid-19 situation, the group remains vigilant and will continue to ensure the safety and wellbeing of its employees and stakeholders as Malaysia transitions to the endemic phase,” it said.