PETALING JAYA: SCGM Bhd has posted a revenue increase of 18.9% to RM72.5mil for the second quarter ended Oct 31, 2021 (Q2’FY22) from RM61mil in Q2’FY21, driven by higher demand for thermo-form food and beverage packaging in Malaysia and its export countries.

       The food-packaging manufacturer declared the second interim dividend of 1.7 sen per share to be paid on Jan 26.

       For the quarter under review, SCGM’s net profit slid to RM7.8mil from RM9.6mil in Q2’FY21 on higher resin prices and higher deferred tax expenses.

       During the quarter in review, said local sales jumped 24.1% year-on-year (y-o-y) to RM49.2mil in Q2’FY22, while export sales rose 9.3% y-o-y to RM23.3mil.

       A worker attending the production machine at SCGM plant in Kulaijaya, Johor. - File pic

       SCGM managing director Datuk Seri Lee Hock Chai said the group was mindful of the rising costs of raw materials, particularly resin, compared to the low-demand price points a year ago.

       “The upward revision in selling prices in the second half of financial year ended April 30, 2021 (H2’FY21) had only partially addressed the higher costs, but we are hoping to mitigate it further with customising new products to develop a more favourable sales mix,” he said.

       Lee said the reopening of economic sectors under the National Recovery Plan during the quarter, alongside the group’s large customer base and distribution network, had worked in the group’s favour.

       “SCGM benefitted from the strong rebound in demand from food and beverage retailers and manufacturers, especially as Malaysia’s sectors gradually reopened after achieving high vaccination rate nationwide,” he said.

       For H1’FY22, SCGM’s revenue increased 20% to RM141.8mil from RM118.2mil previously, while net profit declined 9.9% to RM16.1mil from RM17.9mil a year ago on increased deferred tax expenses.

       Some of the SCGM products. - File pic