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.
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.
