SCGP announced its H1/2024 operating results, achieving total revenue from sales of Baht 68,182 million, indicating a 3% increase compared to the same period last year. In Q2/2024, revenue from sales amounted to Baht 34,234 million, marking a 6% growth YoY. This growth was driven by increased sales volumes from both integrated packaging business and fibrous business, along with continuous efforts in raw materials management and energy costs. Looking ahead, the packaging industry continued to grow in the second half of the year. SCGP is progressing its investment strategies, expanding into healthcare packaging, medical supplies and labware, which are high-growth potential sectors. SCGP is also developing the sustainable packaging to obtain carbon footprint certifications, aiming to collaborate with customers in reducing greenhouse gas emissions across the entire supply chain. Wichan Jitpukdee, Chief Executive Officer of SCG Packaging Public Company Limited, or SCGP, said that overall demand for packaging in ASEAN continues to increase. The consumer goods, food and beverage sectors have seen noticeable development as a result of increased tourism and export, particularly for agricultural products, frozen foods and canned goods. Additionally, packaging for durable goods such as apparel and footwear is consistently recovering in markets like the United States, the United Kingdom, and European countries. In the fibrous business, revenue from sales of foodservice packaging has increased by ongoing recovery in tourism, alongside growth of the food manufacturing industry and fast-food restaurants. Furthermore, this is a continued rise in demand for pulp used in the production of textiles and garments. However, some demand for packaging and packaging paper has been affected by long holiday periods during festivals in Thailand and Indonesia in the second quarter. The cost of recovered paper (RCP) has increased due to heightened demand for packaging across the region. Concurrently, freight cost went up at the beginning of the year, this factor needs to be closely monitored. SCGP emphasizes on sustainability and quality of growth by providing packaging solutions to serve consumer needs couple with raw material management and energy saving. In H1/2024, the company achieved revenue from sales of Baht 68,182 million, an increase of 3% compared to the same period last year. The growing performance was supported by continuous growth across all business lines, integrated with increasing of exports, and the recovery of durable goods sectors. The company reported an EBITDA of Baht 9,786 million, up by 7% YoY. The profit for the period amounted to Baht 3,178 million, reflecting a growth of 17% compared to the same period last year. For Q2/2024, SCGP achieved revenue from sales of Baht 34,234 million, an increase of 6% compared to the same period last year, and a growth of 1% compared to the previous quarter. This improvement was driven by increased consumer spending, the recovery of tourism, and enhanced export activities, which positively impacted SCGP’s packaging sales across industries. The company reported an EBITDA of Baht 4,635 million, a decrease of 1% YoY, and a decrease of 10% compared to the previous quarter. The profit for the period amounted to Baht 1,453 million, a decline of 2% compared to the same period last year, and a decrease of 16% compared to the previous quarter. This reduction was primarily due to the increased prices of recovered paper. On July 23, 2024, the Board of Directors of SCGP has approved a H1/2024 interim dividend payment of Baht 0.25 per share (Baht 1,073 million), which is payable on August 21, 2024 (XD-date on August 6, 2024, and record date on August 7, 2024). Wichan added that the growth of packaging industry is expected to continue in the second half of the year, driven by improvements in manufacturing, services, and consumer spending, as well as government policies aimed at stimulating the economy and investment. It is anticipated that towards the end of the third quarter, industries will begin to increase production for stocking goods in preparation for year-end festivities. In the second half of the year, SCGP is focused on sustainable growth by maintaining a CAPEX of approximately Baht 15,000 million for this year. The intention is on expanding production capacity and fostering growth through Merger and Partnership (M&P) in high-potential growth businesses. Recently, SCGP acquired a 90% stake in VEM (Thailand) Company Limited, a specialist in producing high-performance polymer injection-molded components with global certified cleanroom standards. This acquisition aims to expand SCGP’s packaging business, particularly in medical supplies and labware. Recently, SCGP received the “Carbon Footprint of Products” certification from the Thailand Greenhouse Gas Management Organization (Public Organization) or TGO. This certification covers a wide range of products, including pulp, printing and writing paper, copy paper, packaging paper, plastic packaging, and foodservice packaging. SCGP has also obtained carbon footprint certification for 16 processes related to printing and forming paper packaging, encompassing all product groups of paper packaging. These certifications quantify greenhouse gas emissions according to TGO’s assessment framework, meeting the requirement of sustainable packaging and packaging innovation from customers.
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Fest by SCGP provided foodservice packaging for “the 4th Dhamma Sermon Across Four Regions of Thailand (Central Region)”, held in honor of His Majesty the King on the royal occasion of His Majesty’s Sixth-Cycle Birthday Anniversary, July 28, 2024.
Fest by SCGP provided foodservice packaging for “the 4th Dhamma Sermon Across Four Regions of Thailand (Central Region)”, held in honor of His Majesty the King on the royal occasion of His Majesty’s Sixth-Cycle Birthday Anniversary, July 28, 2024. Mr. Kitchai Tassanavinyu, Foodservice Packaging Solutions Manager, Thai Paper Products Co., Ltd. in SCGP, represented the company and attended the ceremony in the project “the 4th Dhamma Sermon across Four Regions of Thailand (Central Region)”. The event was held in honor of His Majesty the King on the royal occasion of His Majesty’s Sixth-Cycle Birthday Anniversary, 28 July 2024, It gathered representatives from government agencies, the private sector, state enterprises, and the public and was held on July 7, 2024, at Exhibition Hall 1-2, Queen Sirikit National Convention Center, Bangkok. His Majesty the King granted permission for the Royal Tuition Scholarship Project for Thai Monks to organize activities for the “Dhamma Sermon across Four Regions of Thailand.” The objective of the project is to disseminate Buddhist principles through sermons and preaching in four regions: the Northern, Central, Northeastern, and Southern regions, in celebration of His Majesty the King’s 6th Cycle Birthday Anniversary on July 28, 2024. His Majesty graciously bestowed monk robes—14 robes at a time, totaling four times—for a total of 56 robes to the monks who delivered the sermons and chanted the Buddhist mantras. The “First Dhamma Sermon Four Regions of Thailand Project” was held in the northeastern region on January 26, 2024, at Maha Chulalongkorn Rajavidyalaya University (MCRU), Khon Kaen Campus, Khon Kaen Province. The second event took place in the northern region on April 4, 2024, at the Chiang Mai International Exhibition and Convention Centre, Chiang Mai Province, followed by the third event in the southern region on May 29, 2024, at the 60th Anniversary of His Majesty the King’s Accession to the Throne International Convention Center in Kho Hong Subdistrict, Hat Yai District, Songkhla Province. The morning activities of “The 4th Dhamma Sermon across Four Regions of Thailand (Central Region)”, held in honor of His Majesty the King on the royal occasion of His Majesty’s Sixth-Cycle Birthday Anniversary on July 28, 2024, included a sermon delivered by a royal scholarship preacher, followed by preaching and local cultural performances. H.E. Mr. Chirayu Isarangkun Na Ayuthaya, Privy Councillor, presided over the morning ceremony. The afternoon activities featured the chanting of Buddhist mantras and a sermon by Phra Phrom Bundit, the Abbot of Prayurawongsawat Temple. H.E. General Surayud Chulanont, President of the Privy Council, presided over the afternoon ceremony. Alms were provided for attendees during the event. Fest by SCGP co-sponsored 50,000 pieces of Fest foodservice packaging, including elephant-patterned cup packaging and wooden cutlery, ensuring that attendees used clean, safe, and environmentally friendly packaging. This initiative supports campaigns promoting sustainable resource management and fosters environmentally friendly growth.
SCGP Achieves Carbon Footprint of Products Certification, including all Paper Packaging SKUs, Ready to Team Up with Customers to Minimize Greenhouse Gas Emissions and Promote Environmental Sustainability
SCGP has received certification for the Carbon Footprint of Products manufactured in Thailand from The Thailand Greenhouse Gas Management Organization (Public Organization) or TGO, certifying that the Company can specify the amount of greenhouse gas emissions for a range of products, including pulp, printing and writing paper, packaging paper, paper packaging, foodservice packaging, and plastic packaging. This initiative supports customers in using packaging that reduces greenhouse gas emissions, contributing to a sustainable world. Wichan Jitpukdee, Chief Executive Officer of SCG Packaging Public Company Limited or SCGP, said that SCGP recognizes the importance of creating a low-carbon society, which aligns with the Company’s goal of achieving Net Zero by 2050. SCGP is committed to quality business growth alongside the development of environmentally friendly innovative products and adherence to relevant measures to address climate change, such as those in the European Union, which require the disclosure of greenhouse gas emissions from products. This is to ensure the delivery of environmentally friendly packaging to customers and meet the demands of consumers who prioritize sustainable packaging choices. Recently, SCGP has received Carbon Footprint of Products certification manufactured in Thailand from The Thailand Greenhouse Gas Management Organization (Public Organization) or TGO. These certified products include pulp, printing and writing paper, packaging paper, and plastic packaging, totaling 109 products. Additionally, SCGP has received carbon footprint certification for 16 printing and paper packaging producing processes, covering all paper packaging products under the Cradle to Gate assessment. For the copy paper and foodservice packaging (Fest) products, 19 products have been certified under the Cradle to Grave assessment. This certification provides consumers with information about the total greenhouse gas emissions throughout the entire lifecycle of these products, from raw material sourcing, production processes, distribution, usage, to waste management after the end of life. This Carbon Footprint of Products certification represents SCGP’s commitment to collaborating with customers to develop packaging that reduces greenhouse gas emissions throughout the entire supply chain. This initiative helps customers align their business operations with increasingly stringent environmental regulations enforced by governments in many countries. Additionally, the clear identification of greenhouse gas emissions facilitates consumers in making informed decisions to select products that contribute to mitigating environmental issues.
Fest Redi Pak Received the “Best Socially Beneficial Innovation” Award at the “7 Innovation Awards 2024”
“Fest Redi Pak” has received the “Best Socially Beneficial Innovation” award at the “7 Innovation Awards 2024” organized by CP All Public Company Limited. The award product, “Fest Redi Pak”, is a peelable tray made from fiber, designed for chilled & frozen food and ready-to-eat meals, which decomposes within 60 days. This achievement shows Fest’s commitment, in collaboration with Reo’s Deli, to developing environmentally friendly packaging innovations. Fest Redi Pak not only meets functional usage needs but also reflects tangible responsibility towards entrepreneurs, consumers, society, and the environment. Fest continues creating innovation for sustainable packaging innovations to meet consumer demands and contribute to the better world. This award serves as a significant motivation for Fest to advance on the path of sustainability and innovation for society.
Thailand Post Partners with SCGP and LocoPack to Launch On-Demand Box and Envelope Production Service, Boosting Product Value and Supporting SMEs
Bangkok, July 3, 2024 – Thailand Post partners with SCGP and LocoPack to launch on-demand production of boxes and envelopes. This initiative aims to support SMEs, farmers, agricultural product sellers, processed agricultural goods suppliers, and ornamental fish breeders. Dr. Dhanant Subhadrabandhu, Chief Executive Officer of Thailand Post Company Limited, said, “Thailand Post, in collaboration with SCG Packaging Public Company Limited or SCGP and Invenique Co., Ltd. under the brand LocoPack, supports SMEs, farmers, agricultural product sellers, processed agricultural goods suppliers, and ornamental fish breeders by offering on-demand production of boxes and envelopes. This initiative aims to redesign or adjust the packaging of their products to boost sales and enhance product durability. By utilizing an on-demand production model, we can tailor boxes and envelopes to meet the specific needs of entrepreneurs. Upon request, postal service officers will contact customers to facilitate this service in all areas. By the end of July, Thailand Post, SCGP, and LocoPack will launch the first product: a cubic box (15x15x15 cm) designed to securely and safely contain ornamental pets and goods, featuring a design that adds value to the products.” Surasak Amawat, Director of Technology and Digital Platform at SCG Packaging Public Company Limited or SCGP, said, “SCGP is committed to creating innovative products, services, and integrated packaging solutions while ensuring sustainable operations. We are ready to collaborate with a diverse range of partners, such as in this instance, where Thailand Post, SCGP, and LocoPack share the same goal. We aim to collaboratively design, develop, promote, and produce packaging for Thailand Post’s partners and customers, particularly SMEs and farmers. This group, which is large in number, plays a crucial role in driving the country’s economy. This collaboration will lead to the development of packaging that enhances product quality and market value for our customers and ensures sustainability throughout the entire value chain.” Ekaraj Niroj, Chief Operating Officer of Consumer and Performance Packaging Business and Managing Director of Invenique in SCGP, said, “Packaging plays a crucial role in protecting products and reflecting the unique identity that promotes brand recognition. LocoPack, an integrated packaging design and production platform within SCGP, aims to support entrepreneurs ranging from SMEs to large corporations by enabling them to access and produce customized packaging under their own brands with a minimum order quantity of 100 pieces at affordable prices. We are ready to collaborate with Thailand Post, bringing our expertise to develop packaging that prioritizes product safety and service and ensures delivery to consumers. This partnership also aims to create unique packaging to enhance the value of products for Thailand Post’s partners and customers.” For entrepreneurs interested in on-demand production of boxes and envelopes for repackaging and increasing product value, additional information can be found on the Facebook page of Thailand Post Company Limited or by contacting the Postal Sales and Marketing Department at 0-2831-3581.
Holis by SCGP launches first Pop-Up Store driving Brand Engagement and Sustainable Growth
On June 11, 2024, Mr. Ekaraj Niroj, Enterprise Marketing Director of SCGP, participated in the grand opening of the first Holis Pop-Up Store at the Siam BTS station. The launch of this Holis Pop-Up Store, marks a significant step in raising brand awareness, enabling direct interaction and engagement with consumers, and increasing sales opportunities, all aimed at achieving sustainable growth for the business. To celebrate the opening, there is a special promotion of “Buy 1, Get 1 Free” on all items. Customers also have a chance to win a MONSTER TEARS Cry Baby model from POP Mart, with one winner drawn daily for 12 days or until stocks last. Visit the Holis Pop-Up Store at Siam BTS Station, Exit 3. The store opens daily from 10:00 A.M. to 7:00 P.M.
SCGP Invests in VEM (THAILAND) to Enhance Healthcare Packaging and Supplies Business Growth
SCGP has acquired a 90% stake in VEM (THAILAND) COMPANY LIMITED or “VEM-TH” to strengthen its strategy to grow the healthcare packaging and supplies business. This acquisition enhances the production capabilities and extends the product lines of Deltalab S.L. and Bicappa Lab S.r.L. to meet the increasing demand. Wichan Jitpukdee, Chief Executive Officer of SCG Packaging Public Company Limited or SCGP, disclosed on July 1, 2024 that the Company acquired a 90% stake VEM (THAILAND) COMPANY LIMITED (VEM-TH), a manufacturer of high-performance polymer injection molding parts. The investment is valued at no more than USD 4.0 million, approximately Baht 146.2 million. The financial performance of this acquisition will be consolidated from July 2024 onward. The investment in the form of growth through Merger and Partnership (M&P) is part of SCGP’s strategy to expand its healthcare packaging and supplies business. This move aims to meet the increasing demand for such products. Previously, SCGP invested in Deltalab S.L., an expert in the production and distribution of medical supplies and labware in Spain, and Bicappa Lab S.r.L, a specialist in the production of Labware such as pipette tips in Italy. VEM-TH, located in Rayong Province, operates 30 plastic injection mold production lines that comply with ISO 13485, the quality management standard for medical devices. The facility includes certified cleanrooms of class 8 and class 7, producing over 59 million pieces of premium quality products per year. In 2023, VEM-TH reported a revenue of approximately Baht 302 million and had assets totaling Baht 455 million. VEM-TH has a customer base that serves fast-growing clients in the medical, aircraft, electrical parts, and automotive industries, with a broad market coverage including Thailand, the USA, China, and other countries. VEM-TH will enhance, and add to, the production capabilities of Deltalab S.L. and Bicappa Lab S.r.L. to meet the growing demand and enable SCGP to expand its international customer network more robustly and comprehensively.
SCGP Recycle collaborated with the Siam Sindhorn Group on the “Live Green, Feel Good” event to promote the use of natural and recycled products.
SCGP Recycle, in collaboration with the Siam Sindhorn Group, is organizing the “Live Green, Feeling Good” event from June 26 – 30, 2024, at the Velaa Langsuan project. This event promotes the use of natural and recycled products, inviting everyone to contribute to positive change for a better world. It provides a central city marketplace for quality produce shopping, create smiles, and increase income from community agriculture. and bringing smiles to their faces. The event features natural products, healthy food and beverages, clothing made from natural fibers and recycled materials, and home decorations made from natural materials such as rattan and bamboo. It also promotes efficient resource use in line with circular economy principles. SCGP Recycle will set up a Drop Box at Velaa Langsuan on the ground floor to collect all kinds of used paper for proper and standard recycling according to circular economy principles.
Rengo and SCGP Collaborate to Share Experiences in Digital Transformation to Enhance Operations
The team of executives from Rengo, headed by Mr. Hideyuki Kashiwagi, Executive Officer – Paper Business Unit, visited Siam Kraft Industry Co., Ltd., Ban Pong and Wangsala Plant. They were warmly received by the executives led by Mr. Wichan Charoenkitsupat, Chief Operating Officer – Packaging Paper Business. The objectives of the visit are for the teams of executives to discuss and exchange experiences on Digital Transformation from both Rengo and SCGP. This encompasses exploring how they integrate digital technology into various areas of business, including Safety, Paper Manufacturing, Energy Operations, Maintenance, Logistics & Warehouse Management, and Environmental Monitoring. This collaboration seeks to improve operational effectiveness across various areas. The executive team, led by Mr. Ekaraj Niroj, Enterprise Marketing Director, along with Mr. Saharath Pattanavibool, Wangsala Mill Director, Mr. Suttipong Poomsrisa-ard, Banpong Mill Director, Mr. Teerachai Chavapongpanit, Energy Director, Mr. Manit Siriworasilp, Asset Performance Management Director, and other pertinent members, engaged in discussions and exchanged valuable insights.
Batico Won Two Awards from Vietnam Packaging Award 2024
In May, Tin Thanh Packing Joint Stock Company, also known as BATICO, was honored with awards at the Vietnam Packaging Award 2024. Mr. Payungsak Sakulrujar, General Director of BATICO, represented the company at the event, which was hosted by the Vietnam Packaging Associations at the WTC Expo International Exhibition Center in Binh Duong, Vietnam. BATICO received a total of two awards: the Excellence Award in Flexible Packaging for the structure MDO25u/LLDPE160u used in the washing hand liquid, and the Innovative Packaging Award for Flexible Packaging for the structure PET12u/LLDPE125u utilized in the packaging of bran powder for chicken feed. In addition, the event showcased remarkable innovative products, including the Digimarc barcode, an anti-counterfeiting technology that can be verified through a mobile application. This reflects a commitment to developing environmentally friendly packaging innovations.