Scientex's export sales dip in 3Q amid softer market conditions

KUALA LUMPUR: Amid a challenging market environment, lower export sales in the packaging business weighed on Scientex Bhd's performance in the third financial quarter ended April 30, 2025.

In a filing with Bursa Malaysia, the flexible plastic packaging producer said net profit was RM123.87mil, down from RM130.5mil in the previous corresponding quarter, which brought its earnings per share lower to 7.96 sen from 8.41 sen previously.

Revenue during the quarter under review was little changed at RM1.11bil on a year-on-year (y-o-y) basis, with revenue from the property business shoring up the shortfall from packaging.

According to Scientex, its packaging revenue in 3QFY25, was down 6.4% y-o-y to RM614.8mil due to softer export sales and unfavourable foreign exchange movements.

Operating profit dropped to RM34.5mil compared to RM58.4mil in preceding year corresponding quarter.

For its property business, revenue rose 9.9% y-y-o-y to RM495.8mil, due to higher progress billing from the Central and Southern regions.

"The quarter under review also saw seven new projects launches across Northern, Central and Southern regions with higher sales achieved compared to the preceding year corresponding quarter," it said.

Subsequently, the segment's operating profit increased to RM143mil from RM121.2mil in the year-ago quarter.

Over the nine-month period, Scientex's net profit was RM376.42mil, down from RM409.35mil in the previous year's period, while revenue was slightly higher at RM3.33bil from RM3.31bil in 9MFY24.

For the financial year ending July 31, 2025, Scientex declared an interim dividend of six sen per share, payable on July 18, 2025.

"The packaging division continues to navigate a dynamic landscape marked by intense industry competition, inflationary pressures, foreign currency volatility, geopolitical uncertainties such as trade tensions, and subdued market sentiment," said Scientex in its outlook.

"We actively implement strategic initiatives, including cost management and improving operational efficiencies, to enhance our business resilience. 

"In addition, product development and innovation remain our key focus as we strive to deliver customised, value-added, and sustainable packaging solutions to meet the evolving market demand. We are also committed to talent

development and accelerating digitalisation across our operations to drive sustainable growth."

Meanwhile, the group said it remained optimistic over the outlook for the affordable housing segment and property business, with developments across key regions continuing to perform well.