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,“The transformation of food deliveries in the country amid the pandemic have provided well-needed convenience to the community, and will mostly likely stay relevant even in a post-pandemic era, ” SCGM’s managing director Datuk Seri Lee Hock Chai (pic) tells StarBizWeek.
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SCGM Bhd, a food and beverage (F&B) plastic packaging company believes the Covid-19 pandemic has permanently altered consumer lifestyle habits especially with regards to dining out.
Covid-19 has caused an surge in demand for food delivery and take away from eateries and along with its recently established personal protective equipment (PPE) business segment, SCGM is generally a net beneficiary of the pandemic.
“The transformation of food deliveries in the country amid the pandemic have provided well-needed convenience to the community, and will mostly likely stay relevant even in a post-pandemic era, ” SCGM’s managing director Datuk Seri Lee Hock Chai tells StarBizWeek.
SCGM, which recently saw a strong jump in earnings, thinks that this performance is sustainable moving forward based upon this assumption.
“Our gearing towards value-added customisable F&B packaging instead of standardised F&B packaging will also better cater to consumer needs and preference and will ensure revenue sustainability to the group, ” Lee said.
SCGM recently reported that its net profit for the third quarter ended Jan 31 almost doubled year-on-year (YOY) to RM8.1mil while revenue rose by 21.1% to RM62.53mil in the same period.
Basic earnings per share for the most recent quarter rose to 4.21 sen from 2.17 sen while net tangible assets was at 96.8 sen per share.
The group sees this upswing in demand sustaining and is planning to invest a further RM20mil in capital expenditure to expand its production capacity and customer base in its F&B packaging segment, which is still its core business.
It is expecting more demand growth to come from its export markets, Lee says.
“Our export sales have increased 11% to RM21.8mil YOY in the recent third quarter from RM19.6mil. Our current main export markets include Singapore, Australia, Philippines, Indonesia and New Zealand, ” he says.
“For export growth, we will continue to focus our efforts on larger overseas sales orders by up-selling and cross-selling our products to existing overseas clients. We will also strive to target other distributors and manufacturers in our existing export countries to expand our footprint in those markets, ” Lee adds.
Its packaging business had also seen a commendable growth in the local market and Lee says that there has been a strong uptake for its bento boxes and bakery trays, as new norms have increased the instances of takeaways and deliveries.
“Even public events now are required to offer individual takeaway boxes as mass buffet services are no longer allowed. These factors helped push local sales by 27.3% to RM40.8mil in the third quarter from RM32.0mil a year ago, ” he says.