SCGP reiterates the Company’s business potential with strong revenue from sales in H1/2022 at Baht 74,616 million, an increase of 31% compares to the same period of last year with Q2/2022 revenue from sales of Baht 37,982 million, which is an increase of 27% from the same period of last year. Solid revenue was mainly due to the increased demand for fiber packaging and foodservice packaging, continuous growth of all businesses, and the consolidation of financial performance from M&Ps. As demand for packaging in the ASEAN region has been recovering continuously, the Company is heading toward the second half of the year with aims to relentlessly pursue long term growth with quality, and develop sales channels to expand customer base to strategic and high–growth markets in tandem with business synergy to strengthen operational efficiency throughout the supply chain. Meanwhile, the revenue target for 2022 has been raised to Baht 150,000 million. The Board of Directors has approved H1/2022 interim dividend payment of 0.25 Baht per Share with XD–date on August 8, 2022.

Mr. Wichan Jitpukdee, Chief Executive Officer, SCG Packaging Public Company Limited SCGP, disclosed  H1/2022 revenue from sales of Baht 74,616 million, an increase of 31% compares to the same period of last year. The performance was a result of continuous growth in all businesses, as well as the consolidation of the financial performance of Duy Tan, Intan Group, and Deltalab while there was an increase in demand for fiber packaging and foodservice packaging. The EBITDA was Baht 10,365 million, a decrease of 4% from the same period of last year. Profit for this period was Baht 3,514 million, a decrease of 20% compares to the same period of the previous year due mainly to global increase in raw materials and energy costs across industries.

The Q2/2022 performance was significantly improved comparing to Q1/2022, with revenue from sales totaling Baht 37,982 million, or an increase of 27% compares to the same period of last year. Profit for this period was Baht 1,856 million, a decrease of 18% from last year, while EBITDA was Baht 5,478 million, a decrease of 2% compares to the same period of last year.

On July 26, 2022, the Board of Directors of SCGP has approved H1/2022 interim dividend payment of 0.25 Baht per Share (Baht 1,073 million), which is payable on August 24, 2022. XD-date on August 8, 2022, and record date on August 9, 2022.

Mr. Wichan further said that the overall demand for packaging in the second half of the year for Thailand and the ASEAN region is expected to gradually improve from the government’s policy to reopen the country to stimulate the economy and boost the tourism industry along with related businesses. Consumers have become more confident in spending on consumer goods while the demands for packaging from various industries are improving, especially demands for frozen food, canned food, and pet food sector which are expected to continuously increase through the rest of the year. All these are positive factors in relation to the demand for packaging. However, it is still necessary to continue monitoring the global macroeconomic situations such as the rising inflation, potential economic recession and prolonged heightening in energy prices, and ongoing geopolitical conflicts in Europe.

As for the business direction in the second half of the year, SCGP aims for quality growth with a total sales revenue target for this year at Baht 150,000 million, while continue to prudently manage the business operations and investments for business. Total investment budget for this year remains at approximately Baht 20,000 million which includes maintenance & production efficiency improvement projects, organic expansions, and mergers and partnerships (M&P). In the second quarter of 2022, SCGP has invested in the organic expansion project to increase the production capacity of fiber packaging in Thailand by another 75,000 tons per year to meet the growing demand for packaging in the country. Most recently, the Company has entered into the packaging material recycling business in Peute Recycling B.V. (Peute), and strategically invested in Imprint Energy Inc., the USA, a producer of printed batteries with an investment of approximately Baht 105 million for 3.3% share. Imprint is continuously growing in the industry with high growth potential. The knowledge and expertise acquired could be applied for future expansion in the ASEAN region, along with potential usage of technology for intelligent packaging.

SCGP continues to pursue sustainable business operations in line with the ESG framework, to achieve its goal of Net Zero in 2050 through continuous development and optimization of production processes. In addition, the Company continues to grow the proportion of renewable energy, and develop innovative products & services and solutions with consideration of the effect on the environment, while expanding cooperation network to drive ESG. Recently, SCGP has announced a collaboration project with business partners such as Kao Industrial (Thailand) Company Limited (Kao), a leading manufacturer of consumer and chemical products, to create innovative and sustainable packaging. The partnership represents an important synergy between two companies that share mutual goals in developing environmental-friendly products and creating sustainable solutions for consumers.