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

The capex, which is allocated for the next financial year ending April 30, 2022, would be utilised for the purchase of extrusion machines and forming machines.

In a statement, SCGM said the group’s F&B packaging segment recorded RM52mil revenue in the third quarter ended Jan 31, 2021 (3Q21), a 23.2% increase from RM42.2mil a year ago (3Q20).

The strong F&B segment performance largely led to the 21.1% higher group revenue of RM62.5mil in 3Q21 from RM51.6mil in 3Q20.

Managing director Datuk Sri Lee Hock Chai said the group saw encouraging uptake for our F&B packaging such as bento boxes, bakery trays and other products in the last few quarters, as it meets increasing demand from F&B businesses in line with higher takeaways amidst COVID-19.

“This capacity expansion proves timely for us to capture the rising demand from our customers, and allows us additional capacity to serve even more customers in the domestic and international markets.

“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,” he said.

“Hence, by leveraging on our expanded operating capacity, as well as our extensive distribution network and in-house design capabilities to manufacture innovative products, we are set to continue expanding our clientele going forward,” he added.

For the nine months ended Jan 31, SCGM posted a net profit of RM25.98mil against RM10.41mil in the same period a year ago. Revenue for the period rose to RM180.75mil from RM160.82mil previously.

SCGM declared a third interim dividend of 2.2 sen per share for the financial year ending April 30, 2021, which will be paid on April 28 with an ex-date on April 12.

Alongside the previous first and second interim dividend of 1.7 sen and 1.5 sen paid by the group, SCGM’s total dividend payout for nine months translates to RM10.4mil or 40% of net profit in 9M21.

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