KUALA LUMPUR (Sept 29): Scientex Bhd's net profit for the financial year ended July 31, 2021 (FY21) rose 17.2% year-on-year (y-o-y) to RM457.23 million from RM390.11 million on the back of a 3.9% rise in revenue to RM3.7 billion.

In a bourse filing on Wednesday, Scientex attributed the record revenue to stable packaging demand and higher sales of affordable homes in Malaysia.

The packaging manufacturer and property developer proposed a final dividend of five sen per share.

Together with the four sen dividend paid on July 23, the estimated total dividend payout of RM139.6 million represents 30.5% of the group’s net profit for FY21.

Earnings per share (EPS) for the year were 29.5 sen, up from 25.22 sen previously.

For the fourth quarter ended July 31, 2021 (4QFY21), Scientex’s net profit was flat at RM142.65 million on the back of a revenue of RM970.36 million versus RM954.63 million a year earlier.

Reviewing its performance, Scientex said its manufacturing segment contributed RM2.5 billion or 68.1% of the group's FY21 revenue.

It said healthy sales of its industrial packaging products mitigated lower deliveries of consumer products to the food and beverage (F&B) and fast-moving consumer goods (FMCG) sectors domestically.

As for its property development segment, Scientex recorded higher sales and construction progress of affordable homes in Malaysia, with the segment's contribution exceeding the billion ringgit mark to reach RM1.2 billion or 31.9% of the group's FY21 revenue.

In a separate statement, Scientex chief executive officer (CEO) Lim Peng Jin said despite the challenging operating environment in FY21, the group ensured optimal operational uptime across its 17 manufacturing facilities in Asia-Pacific and the US while keeping its employees safe.

“We aim to continuously improve our capabilities and efficiency to reinforce our position as a leader in the Asia-Pacific packaging market.

“The privatisation proposal of our converting unit, Daibochi Bhd, will allow us to optimise its operations and corporate structure to achieve greater production assurance and business continuity planning to serve global F&B and FMCG brands,” he said.

On the outlook, Lim said due to market uncertainties posed by the ongoing Covid-19 pandemic, the manufacturing sector faces challenges such as fluctuations in raw material prices, rising logistic costs and heightened financial market volatility.

“We will continue to manage these challenges vigilantly while expanding our business in strategic areas, as well as develop more innovative and sustainable packaging solutions,” he said.

At the midday break on Wednesday, Scientex had shed three sen to RM4.59, valuing it at RM7.12 billion.