Leading thermo- vacuum formed plastic packaging manufacturer SCGM Bhd recorded a net profit of RM7.1 million in the third quarter ended Jan 31, 2016 (3Q16), surging by 83.3 per cent from RM3.8 million previously.
Its revenue rose 36.2 per cent to RM37.3 million in the same quarter from RM27.4 million a year ago.
"The topline jump was boosted chiefly by export sales which increased 46.9 per cent to RM18.4 million in 3Q16 from RM12.5 million in 3Q15 while local sales improved by 27.1 per cent to RM18.9 million in 3Q16 versus RM14.8 million previously," SCGM said in a statement Monday.
Managing Director Datuk Seri Lee Hock Chai attributed the improved performance to the company's sales of food and beverage (F&B) packaging.
"Sales of our F&B packaging have been on a strong growth trajectory, resulting from our increased product range and aggressive strategies to capture a greater share in the local and overseas markets," he said.
Lee also said the company aims to reach more than 6,400 distribution points in Brunei, Sabah and Sarawak this year.
"This targeted uptake in the local arena, coupled with our rising export growth, necessitated our production capacity expansion which is expected to be deployed in the fourth quarter of our financial year ending April 30, 2016 (FY2016).
"We are confident that this expansion will contribute positively to the group from FY2017 onwards," he said.
To date, SCGM has invested RM11.3 million in capital expenditure (CAPEX) on new machinery, comprising two auto punching machines, a press forming machine, two extrusion machines, as well as a computer numerical control machine.
The money will be deployed in the fourth quarter of FY2016.