Packaging woes weigh on Scientex’s 2Q25 profit

PETALING JAYA: Scientex Bhd highlighted evolving challenges in its packaging division as it reported a lower bottom line for the second quarter of its financial year 2025 (2Q25).

In remarks accompanying its latest results, the company said the division faced intense industry competition, inflationary pressures, foreign currency fluctuations, geopolitical uncertainties and subdued market sentiment.

For 2Q25, Scientex posted a net profit of RM123.95mil, down from RM141.01mil, mainly due to competition in industrial packaging products.

Earnings per share dropped to 7.97 sen from 9.09 sen.

This was despite a marginal increase in revenue during the quarter to RM1.11bil from RM1.09bil previously.

The group’s property segment registered a 3.8% improvement in revenue to RM474.4mil, compared to RM456.9mil in 2Q24, while operating profit rose to RM133.1mil, compared to RM127.3mil in the previous corresponding quarter.

For the six-month period (1H25), the group’s net profit was RM252.55mil, down from RM278.85mil, while revenue increased slightly to RM2.21bil from RM2.2bil in 1H24.

“Despite the challenging external environment, the packaging division remains committed to drive sustainable performance in the current financial year,” said Scientex in its outlook.