KUALA LUMPUR (March 13): SCGM Bhd turned in a 22.7% lower third quarter net profit at RM5.4 million, against RM6.98 million a year ago, due to higher costs, depreciation charges and foreign exchange losses.

Earnings per share for the quarter ended Jan 31, 2018 dropped to 2.79 sen from 5.29 sen previously, the plastic packaging manufacturer said in a filing with the stock exchange.

Quarterly revenue, however, rose 16.2% to RM53.42 million from RM45.99 million, buoyed by higher sales demand for its plastic packaging products.

SCGM has proposed a third interim single tier dividend of 1.5 sen per share, payable on April 13.

For the cumulative nine-month period, net profit fell 9.3% to RM16.25 million from RM17.92 million in the same period of the previous year.

Cumulative revenue stood at RM159.19 million, up 26.5% from RM125.88 million previously.

The group said it was less profitable as a result of higher resin prices, higher finance costs, higher depreciation charges, as well as foreign exchange losses.

Moving forward, SCGM said the timely completion of its new manufacturing facility in Sengkang, Kulai in this fourth quarter — which will house new production and warehouse facilities — will increase production capacity and streamline manufacturing processes for better operational efficiency.

“In line with the significantly increased production capacity, the group will continue to allocate more resources in its sales and customer service team to further boost its local and overseas sales,” said the group.

SCGM is also developing a new range of environmentally-friendly products to address growing demands for sustainable packaging practices, it said.

At market close today, shares in SCGM fell eight sen or 4.04% to RM1.90, with 203,100 shares traded, translating into a market capitalisation of RM367.84 million. The counter has declined 28% year-to-date, from RM2.63 on Dec 29.