PETALING JAYA: SCGM Bhd posted a net profit of RM6.83 million in its fourth quarter ended April 30, from a net loss of RM7.14 million reported in the corresponding quarter of the previous year.
This was driven by the maiden contribution from higher-profit products of face shields, reduced resin prices, lower interest expenses, higher gain on foreign exchange, partial utilisation of unutilised reinvestment allowance brought forward from prior year, and partial recognition of deferred tax asset on unabsorbed reinvestment allowance previously not recognised.
Revenue for the period fell slightly by 2% to RM49.66 million from RM50.7 million reported previously.
For the full financial year, SCGM reported a net profit of RM17.28 million from a net loss of RM5.12 million recorded in the previous financial year.
Revenue for the period slowed 4.1% to RM210.48 million from RM219.57 million reported previously.
For the period, the group’s directors have proposed a fourth interim single tier dividend of 1.5 sen per share payable on July 29.
In its Bursa filing, the group stated that it will stay on course to serve recession-proof segments; the food and beverage (F&B) sector as its primary target, and medical personal PPE as its secondary market.
For the F&B segment, SCGM will further intensify its marketing efforts in the domestic and export markets to continue growing its sales of its packaging products and emphasize on the fulfilling demand for customised F&B packaging.
For the PPE segment, it will expand its product portfolio by adding face masks to its current range of face shields.
Furthermore, the group revealed that the consolidation of its rented manufacturing plant in Telok Panglima Garang, Selangor and its headquarters and manufacturing plant in Kulai, Johor since March 2020 is expected have a positive impact for the group due to increased output per worker and improved economies of scale as well as lower operating cost.