SCGM's net profit dips slightly in Q2

PETALING JAYA: Plastic packaging manufacturer SCGM Bhd saw a slight decrease of 3.12% in its net profit to RM5.26 million for the second quarter ended Oct 31, 2017 against the RM5.43 million recorded a year ago, due to change in sales mix and higher raw material cost.
The group's revenue for the quarter under review improved by 24.02% to RM52.11 million from RM42.02 million in the same quarter last year due to significant increase in sales turnover which was mainly spurred by higher sales demand for plastic packaging products.
It has proposed to declare an interim dividend of 1.5 sen per share.
SCGM said in a Bursa Malaysia filing that with the larger scale of operation and gain from economies of scale, the group will continue to formulate new marketing strategy and expand its product ranges to drive its financial performance to greater heights.
"Barring any unforeseen circumstances, the group foresees the new Kulai factory targeted to be completed in the fourth quarter of current financial year ending April 30, 2018 will contribute positively to its future revenue and net profit following the expansion of its production capacity and installation of new production lines."
SCGM's net profit for the cumulative period of six months, dipped slightly by 0.81% to RM10.85 million from the RM10.94 million recorded last year. Revenue, however, rose 32.4% to RM105.77 million from RM79.89 million.
Its shares gained 1.1% to close at RM2.72 with some 136,300 shares traded.