KUALA LUMPUR (March 20): Scientex Packaging (Ayer Keroh) Bhd’s net profit for the second quarter shrank 40.06% mainly due to lower revenue, higher electricity costs and changes in product mix.

Net profit for the three months ended Jan 31, 2024 (2QFY2024) declined to RM8.02 million from RM13.38 million a year earlier. Revenue for 2QFY2024 fell 11.2% to RM175.84 million from RM198.06 million on lower demand from its export markets.

For the first half of FY2024, the group’s net profit dropped 38.7% to RM15.72 million from RM25.65 million a year ago as revenue decreased by 15.3% to RM348.82 million from RM411.98 million.

The company did not declare any dividend for the quarter.

Amid the challenges of ongoing political uncertainties, rising inflationary pressures and weak market sentiment that will continue to impact operating costs and market demand, the group continues to work on improving operational efficiency, Scientex Packaging said.

This is being done through initiatives to optimise machine utilisation and employee productivity, as well as by focusing on innovation and the development of customer-centric packaging products.

The group also flagged risks to the challenging socioeconomic conditions in Myanmar.

Nonetheless, it will monitor the conditions and national policy changes within the locality to minimise adverse effects towards its operation there while exploring options pertaining to its Myanmar operations.

Shares of Scientex Packaging were last traded at RM2, giving it a market value of RM702.34 million.