Southern Packaging has issued a profit guidance for the 1HFY2023 ended June, expecting a net loss due to lower sales revenue and profit margin.
A year ago, the company had issued a similar profit guidance of anticipated net loss, saying that its sales were affected by the lockdown in Shanghai and surrounding areas due to the recent resurgence of the Covid-19 cases.
This year, Southern Packaging says it managed to regain some market share amidst keen competition and weak demand, but the sales recovery was not strong enough to turn a net profit. They say that the increasing energy costs also contributed towards increasing manufacturing costs.
The company’s results will be announced around Aug 14.
Shares in Southern Packaging closed at 4.25 cents on July 24.
