SCGM earnings plunge 68.6% in Q2

PETALING JAYA: SCGM Bhd’s net profit in the second quarter ended Oct 31 plunged 68.6% to RM1.65 million, from RM5.26 million in the previous corresponding quarter.

The lower earnings was mainly due to higher resin prices, finance costs, utilities expense, depreciation charges and labour cost during the quarter, the group said in Bursa Malaysia filing.

Revenue for the quarter increased 10.2% to RM57.43 million, from RM52.11 million in the same period last year mainly due to higher local sales demand for plastic packaging products.

For the six months period, its net profit tumbled 75% to RM2.71 million, from RM10.85 million a year ago, while revenue grew 7.1% to RM113.23 million, from RM105.77 million previously.

Going forward, the group said it will focus on its sales efforts in developing more marketing strategies to increase its sales of food and beverage (F&B) packaging locally and globally.

At the same time, the group said it is regularly monitoring prices of resin, which is its key raw material and subject to the fluctuations of crude oil prices.

The group has proposed second interim dividend of 0.5 sen for the financial year ending April 30, 2019.