KUALA LUMPUR (March 16): Scientex Bhd’s net profit for the second quarter ended Jan 31, 2022 (2QFY22) narrowed to RM93.69 million from RM112.17 million in 2QFY21.

Revenue rose to RM952 million from RM906.54 million previously, it said in a filing with Bursa Malaysia on Wednesday (March 16).

In a separate statement, the group said the lower profit was mainly due to the impact of higher raw material prices and freight costs for its consumer packaging business and deferment of Certificate of Completion and Compliance issuance in certain developments.

“The property segment is facing higher raw material costs and materials shortages, as well as changes in certain regulatory application processes, which have temporarily affected our operating efficiencies.

“However, demand for affordable homes remains healthy, and we continue to expand to new locations with maiden launches of landed properties in Negeri Sembilan and Kedah, together with our first high rise in Klang Valley in the second half of financial year 2022,” said Scientex chief executive officer Lim Peng Jin.

Moving forward, he said the reopening of businesses and improving economic activity in Malaysia and internationally augurs well for the group.

“We have seen stable demand for our packaging products and will continue to expand capacity in areas of competitive strengths, as well as pursue innovation across several categories to further reinforce our market position.

“This includes continued development of a wider range of sustainable packaging solutions to meet increasing demand, especially among consumer brands,” he said.

The group is also enhancing its business continuity plans to reduce risks of operational disruptions, and secure the trust of global customers who depend on supply chain commitments.

“Meantime, we look forward to meeting the vast requirements for affordable homes, on the back of a gradually recovering economy and high vaccination rates.

“Our landbanking efforts in recent years have positioned us well to capitalise on the post-pandemic economic rebound, while we are also leveraging the use of digital platforms to boost sales and marketing effectiveness,” he added.

At lunch break, Scientex’s shares rose by 0.25% to RM3.99 with 315,400 shares transacted.

Get the latest news @ www.EdgeProp.my

Subscribe to our Telegram channel for the latest stories and updates

Click here for more property stories

SHARE
RELATED POSTS
  1. Scientex's 4QFY22 profit slips 12% amid record revenue, declares five sen final dividend
  2. Scientex's unwavering mission to provide homes for the masses is still on the right track
  3. Scientex says FY21 net profit up 17.2% y-o-y to RM457m on record revenue, declares five sen dividend