apple developer:SCGM to expand food packaging capacity

2021-04-02 26 views 0

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,SCGM managing director Datuk Seri Lee Hock Chai (pic) said, “We are seeing encouraging uptake for our F&B packaging such as bento boxes, bakery trays and other products in the last few quarters, as we meet increasing demand from F&B businesses in line with higher takeaways amidst Covid-19.”

KUALA LUMPUR: Food packaging manufacturer SCGM Bhd plans to spend RM20mil capital expenditure (capex) to expand its food packaging capacity.

The capex, which is allocated for the next financial year ending April 30,2022 (FY22) would be used to buy extrusion machines and forming machines.

In a statement, the group said its food and beverage (F&B) packaging sales continued to benefit from the new norm of increased food delivery and takeaway amidst the Covid-19 environment in the third quarter ended Jan 31,2021 (Q3).

SCGM managing director Datuk Seri Lee Hock Chai (pic) said, “We are seeing encouraging uptake for our F&B packaging such as bento boxes, bakery trays and other products in the last few quarters, as we meet increasing demand from F&B businesses in line with higher takeaways amidst Covid-19.”

Lee said the capacity expansion is timely for the group to capture the rising demand from customers in domestic and international markets.Some of the SCGM products.

“As the largest thermoform F&B packaging provider in Malaysia, we believe we have a competitive edge in sourcing for new clients particularly in the domestic arena, alongside overseas markets such as New Zealand, Australia, Singapore, the Philippines and Indonesia.”

Regarding the current uptrend in resin prices, Lee said, “Even as resin prices continue to trend upwards, our position as the largest thermoform F&B packaging provider and price leader allows us to benefit from economies of scale and adjust prices accordingly.”

For Q3, the group saw its net profit nearly doubling to RM8.1mil from RM4.2mil a year ago, due to higher group revenue and favourable product mix as well as finance expenses and lower operating costs incurred as the group consolidated its Telok Panglima Garang factory to its larger Kulai plant since March 2020.

For Q3, group revenue grew 21.1% year-on-year to RM62.5mil, due to its strong F&B segment performance.

For the nine months under review (9M21), the group saw its net profit grew nearly three-fold year-on-year to RM26mil on the back of favourable sales mix, lower raw material costs and reduced operating and interest expenses.

Revenue for 9M21 grew 12.4% year-on-year to RM180.8mil as a result of higher deliveries of F&B packaging and contributions from the new personal protective equipment segment comprising face masks and face shields.

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