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SCGP Announces 2024 Results with Revenue Up 3%, Dividend Declared at 0.55 Baht per Share, Driving Expansion in Packaging for Consumer-Linked Products

News SCGP Announces 2024 Results with Revenue Up 3%, Dividend Declared at 0.55 Baht per Share, Driving Expansion in Packaging for Consumer-Linked Products Loading Data… SCGP announced the operating results for 2024, achieving total revenue from sales of Baht 132,784 million and profit for the year of Baht 3,699 million, along with a dividend payment of 0.55 Baht per share, representing 63.8% of profit. Over the past year, SCGP successfully navigated challenging circumstances by strengthening the consumer-linked product portfolio, such as food & beverage packaging as well as consumer packaging, expanding packaging and medical and supplies business, and focusing on boosting sale volume in domestic markets, e.g. Thailand, Indonesia, Vietnam, and the Philippines. These efforts solidified SCGP’s position as a leader in the ASEAN packaging market share. Looking ahead, SCGP is confident in achieving business growth in 2025, driven by the recovery of the packaging market. SCGP has set an EBITDA target of Baht 18,000 million and outlined four key strategies: 1) Expanding domestic markets and downstream products, 2) Enhancing operational excellence through data analytics and Artificial Intelligence (AI) to increase business opportunities and cost saving by up to Baht 600 million, 3) Developing innovations, solutions, and low-carbon products to meet customer demands, and 4) Advancing ESG initiatives by increasing the use of alternative fuel to reach 39%. Wichan Jitpukdee, Chief Executive Officer of SCG Packaging Public Company Limited or SCGP, said that the overall packaging industry in 2024 saw improving domestic market demand in ASEAN. This growth was driven by domestic consumption, the recovery of tourism, and export activities. However, in the second half of the year, factors such as exchange rates of the Thai Baht and other ASEAN currencies, coupled with a slower-than-expected economic recovery in China, impacted to lower export volumes and the regional pricing of packaging paper. In the fourth quarter of 2024, ASEAN domestic market demand increased compared to the third quarter, particularly in the food & beverage and fast-moving consumer goods (FMCG) segments. Meanwhile, demand for packaging paper from China showed signs of recovery, with import volumes trending upward especially in December due to increased consumption and continued implementation of economic stimulus policies.Last year, SCGP handled the dynamic changes in the business environment by adjusting its marketing strategies to focus on domestic market within ASEAN to cater to the increasing demand for packaging. This approach enabled SCGP to boost sale volume for packaging paper, fiber packaging, and polymer packaging, further reinforcing SCGP’s leadership position in the ASEAN packaging market share. SCGP also diversified its portfolio by increasing investments in consumer-linked product categories such as food & beverages, fast-moving consumer goods (FMCG), and high-potential segments like healthcare supplies. SCGP broadened its export reach to new markets in South Asia, including India and Bangladesh, and adopted technology to enhance efficiency and reduce production costs. In terms of recovered paper management (RCP), SCGP established partnerships to increase the sourcing and use of locally recovered paper. Furthermore, the company is undergoing capital restructuring to reduce financial costs in Indonesia. In 2024, SCGP achieved revenue from sales of Baht 132,784 million, a 3% increase compared to the previous year. EBITDA stood at Baht 16,127 million, representing a 9% decline from the previous year, while profit for the year was Baht 3,699 million, a decrease of 30% from the previous year. For the fourth quarter of 2024, SCGP reported a revenue from sales of Baht 31,231 million, a 2% decrease YoY. EBITDA for the quarter was Baht 2,845 million, down 35% YoY, and loss for the period was Baht 57 million, a decrease of 105% YoY. This decline was primarily due to higher recovered paper costs, lower selling prices of packaging paper, and reduced contributions from operations in Indonesia and the recycling business. In consideration of the FY2024 financial performance, the Board of Directors has proposed for shareholder approval at the Annual General Meeting (AGM), a full year 2024 annual dividend payment of 0.55 Baht per share, of which 0.25 Baht per share was previously paid as an interim dividend on 21 August 2024. The final dividend payment of 0.30 Baht per share will be on 21 April 2025, record date of 2 April 2025, and XD-date of 1 April 2025. Wichan added that the packaging industry is expected to see a positive outlook in the first quarter of 2025, driven by increased consumption in ASEAN markets, supported by government measures to stimulate spending and rising demand for packaging paper in China. Meanwhile, the European economy is anticipated to grow gradually due to declining inflation rates and easing interest rates. However, close monitoring is required for potential impacts from trade tariff measures on imported goods, which may affect global supply chains. Meanwhile, energy prices and logistics costs are expected to remain stable. In 2025, SCGP has allocated a total investment budget of Baht 13,000 million and aims to increase EBITDA to Baht 18,000 million. The company implements four core strategies to achieve quality growth: 1) Profitability Enhancement in ASEAN: SCGP will focus on markets in Thailand, Indonesia, Vietnam, and the Philippines and expanding its portfolio of consumer-linked products, while also exploring new high-potential markets, including healthcare supplies. 2) Operational and Supply Chain Excellence: SCGP will improve production costs and energy efficiency through the adoption of advanced technologies such as data analytics and artificial intelligence (AI). These measures are expected to enhance business opportunities and cost saving by approximately Baht 600 million in 2025; 3) Innovation, Solutions, and Customer Experience: SCGP continues to focus on developing innovations, processes, and services that enhance customer experience and create differentiation to drive value creation and profitability. SCGP has allocated a budget for research and development of packaging innovations, equivalent to 1% of its annual revenue. For 2025, SCGP aims for 37% of its total revenue to come from its innovation and solutions-based product categories; and 4) ESG & Circular Economy: SCGP is committed to developing certified carbon footprint products and targets increasing the use of alternative fuel to 39% of its total energy …

Thai Cane paper PLC. Kanchanaburi Plant has been awarded the “Prime Minister Industry Award 2024”

News Thai Cane paper PLC. Kanchanaburi Plant has been awarded the “Prime Minister Industry Award 2024” Loading Data… Thai Cane paper PLC. Kanchanaburi Plant, represented by Mr. Apichit Plengrusamee, Plant Manager, received the “Prime Minister Industry Award 2024” in the Outstanding Industry category for Enhancing Productivity from the Ministry of Industry. The Prime Minister Industry Award 2024 ceremony was presided over by Prime Minister Paetongtarn Shinawatra, with the aim of inspiring and motivating entrepreneurs to develop creative innovations that benefit the industrial sector and communities nationwide, advancing the industry in line with the policy of “Reforming the Modern Economy: Convenient, Clean, and Transparent.” The ceremony was held at the Santimaitri Building in the Royal Thai Government House on December 18, 2024. Related Contents Loading Data…

Adjust Perspectives – Upgrade Ideas to Foster Sustainability Mindset

News Adjust Perspectives – Upgrade Ideas to Foster Sustainability Mindset Loading Data… SCGP is committed to driving its businesses based on ESG principle, a seed of sustainability, social responsibility, and environmental sustainability, on a continuous basis. Today, we thus would like to introduce staff who have fostered tangible collaboration on this front. Let’s find out their passion and work experience. “ESG has the duty to supervise our company’s operations in environmental, social, and governance dimensions. Currently, I am responsible for strategies that resonate with not just the company’s business approach but also international sustainability standards. We pay special attention to our social impacts on employees as well as business partners, for example via our focus on human rights. Our company has formulated policies and guidelines that prevent the exploitation of employees, business partners, and other stakeholders. We seek to ensure that our employees and business partners work in the safe and proper environment. Moreover, we have developed our employees’ knowledge and skills on top of reviewing their welfare regularly to ensure that it is appropriate. “My job is mainly about coordinating with, talking and listening to, and updating information with relevant authorities for the exchanges of knowledge and finding out what topics we should focus on more. This paves the way for policy improvement and the formulation of tangible measures. Although it takes time for such efforts to bear fruit, I always trust that the results will be good. “ESG can not drive sustainability alone by one unit. If we educate everyone more about ESG, our company will be able to foster sustainability organization-wide and build further business growth.” Ms. Natthida BinsomprasongAssistant Manager – ESG “My duty is to formulate environmental strategies, especially those about climate change. I have conducted surveys, gathered and analyzed best-practices data, and done benchmarking involving companies in the same industry. Findings are needed for the formulation of our company’s work plans. Also, I am in charge of providing environmental data in support of other units such as planning, marketing, or promotion teams. “As my job requires me to seek data and collaboration from various sides, I need to develop a good mindset and good attitude toward colleagues. They are key to promoting a supportive work atmosphere and making my job easier. “When coming across a problem, my passion may falter somewhat. But I restore it by boosting my energy through sports or sightseeing. Once I feel better, I will try to reflect and explore solutions. I focus on finding the middle path or something that will promote mutual benefits. “Sometimes, I have got good advice from other units thanks to collaboration opportunities. It can be used to upgrade my ideas and develop our company sustainably.” Mr. Nattawat ChoenthanomwongAssistant Manager – ESG News Release Download Related Contents Loading Data…

Pan International: It Takes Collaboration to Achieve Big Success!

News Pan International: It Takes Collaboration to Achieve Big Success! Loading Data… As ESG concept has been a growingly important concept for all types of businesses, Pan International (Thailand) Company Limited – the integrated and centralized procurement company for Thai Beverage Group – has applied this concept in a tangible manner out of its intention to contribute to building a better planet. Sustainable Procurement Mr. Setha Thavisri, Acting Managing Director of Pan International (Thailand) Company Limited, revealed that his company was established in 1972 or 52 years ago. Initially, it was an importer that imported products for distribution in the Thai market. However, it has later evolved into the integrated and centralized procurement company for Thai Beverage Group. “We were appointed the group’s procurement company about 20 years ago. With the appointment, we have been responsible for procuring products and services for about 170 companies. We focus on providing comprehensive group procurement shared service with cost efficiency that is achieved based on good governance and enhanced sustainable procurement capabilities. Our mission is to source excellent services and products at both local and international levels, using knowledge, expertise, and the highest professional standards. “Apart from good prices and good quality, we have also paid attention to sustainability. In carrying out our mission, we have worked with vendors to guide them towards the same goals in regard to net zero emissions and Scope 3 GHG Emissions Reduction.” Although Pan International’s role is not directly related to production, the company has attached significant importance to Other Indirect Emissions. This type of emissions accounts for the highest percentage of carbon footprint, which determines greenhouse gas emissions from upstream to downstream. In other words, emissions are calculated even during procurement, product transportation, business trips, and waste management. This principle applies to organizations that neither directly control nor own activities emitting greenhouse gases. “Five key sustainability topics in supply chain management are: 1) Climate Change; 2) Water Management; 3) Human Rights; 4. Occupational Health and Safety, and 5) Business Ethics. We have applied all these five topics into our 1) Supplier Screening; 2) Supplier Assessment, and 3) Supplier Development,” Mr. Setha said. ESG and Supply Chain Management ESG has crucial importance where suppliers are concerned. To highlight the importance, Pan International has held the Business Partner Award contest to encourage suppliers to present projects that help with greenhouse gas emissions reduction and resource efficiency. “We have held the contest for eight years already. In the beginning, we sought to develop our suppliers’ ability to deliver quality products on time only. But recognizing the importance of sustainability, we have now used sustainability as a criterion. We would like to develop our suppliers, making them aware of where their raw materials come from, the ones used to produce products they have sent to us. Are resources properly used? Are a lot of resources wasted? We believe our contest is a key initiative in our supplier development,” Mr. Setha said. “We have also paid due attention to sustainability-related certificates. We demand to see certifications because we expect their products to be socially and environmentally responsible. “We have sourced packaging from suppliers who have shared our sustainability focus and cared for society. They, for example, legally hire workers, uphold ethics, and embrace transparency. They do not take advantage of the public in any aspect. “Our procurement of paper packaging requires a type of sustainability-related certification, which guarantees its production process seeks to reduce the use of resources. Our paper packaging comes with a certificate issued by FSC (Forest Stewardship Council). When consumers see the FSC symbol, they know our packaging is produced in accordance with sustainability practices. The packaging definitely does not engage in deforestation. Aside, an FSC-certified product is recyclable, thus supporting maximum resource efficiency.” FSC advocates responsible forest management. It grants its symbol just to packaging that meets its international standard and whose supply chain has already been audited. Only packaging using resources from manmade commercial forest plantations is eligible to apply for an FSC certificate. Partner Sharing Sustainability Philosophy Pan International has conducted its operations based on ISO 20400 or international standards for sustainable procurement. It therefore has required suppliers to comply with its Supplier and Business Partner Code of Practice. After passing the company’s screening process, all suppliers must study the code’s content to ensure full compliance. “Sustainability-related certificates rank among our criteria in reviewing suppliers during the bidding process. “When buying Sustainable Packaging, we focus on five criteria or 4R/1I:• Reduce: How to reduce packaging weight, which in turn lowers the use of resources;• Retrieve: How to retrieve packaging (after usage);• Reuse & Recycle: How to reuse or recycle the packaging; and• Innovation: How to improve packaging design at the upstream point. “We have chosen SCGP as our business partner because it is the leading packaging solutions provider. We have often benefited from SCGP innovations and insight sharing. SCGP therefore has been our top-of-mind business partner. SCGP’s practices have resonated with ours, especially regarding to ESG and sustainable development. “SCGP has impressed us in many aspects. First of all, SCGP has closely taken care of its customers. When we want something, SCGP responds fast and often promptly. Secondly, SCGP is flexible. As the world has been changing all the time, we need to explore new packaging designs fast. New design ideas, information sharing, and market insights given by SCGP help us make timely purchase decisions. “In the future, we will apply the principles of EPR (Extended Producer Responsibility) to manufacturers involved in all phases of packaging’s life cycle. This means we will have to take care of used packaging so that it can be reused or recycled. This is a new project that we will do with SCGP.“Aside, SCGP is in the Thailand Supply Chain Network (TSCN) just like we and other leading organizations. TSCN plays a role in coaching and developing smaller enterprises about sustainable business practices. We believe that we can’t single-handedly pursue sustainability. It will take collaboration from all sides to …

Driving Duy Tan with ESG

News Driving Duy Tan with ESG Loading Data… While many people think profitability determines a business’s success, an emerging trend on business scenes puts a focus on ESG (Environmental, Social, and Governance). The ESG principles, after all, promise not just sustainability but also value-adding. In this volume, P-DNA sat down with Mr. Chamornwut Tamnanjit, General Director of Duy Tan Plastics, to learn about how he had applied ESG for his organizational sustainability and nudged staff at all levels to embrace the principles. Beginning of Diverse Background With a bachelor’s degree in engineering, Mr. Chamornwut started his career at SCG. The company later granted him a scholarship to further his education in the United States, after which he returned to SCG and was assigned to Siam Kubota Corporation. “I had worked at Siam Kubota for 15 years, during which I learned about various fields of work from engineering, to quality assurance, to manufacturing, and to sales and marketing. My last post at Siam Kubota was as a marketing manager. After my stint there, I was assigned to SCG Paper (during its transformation into SCG Packaging). Under SCG Paper, my first posting was at the Pathum Thani Plant of Thai Containers Group. I then moved on to the Packaging Solutions Department, which started expanding its business to Polymer Packaging. So, I finally landed a post at Duy Tan Plastics Manufacturing Corporation (Duy Tan), its joint venture in Vietnam. Duy Tan has two core businesses: one about Rigid Packaging, and the other about houseware retailing. Working at Duy Tan has allowed me to familiarize myself with various types of raw materials. My posting to Duy Tan was a big challenge in the beginning. But thanks to this challenge, my learning and work experience have expanded.” Driving Duy Tan with ESG “In Vietnam, it is hugely important to drive a business with ESG. The country, after all, has positioned itself as a manufacturing and export hub. Recognizing that its export destinations like America and Europe have accorded much importance to ESG, the Vietnamese government has passed laws to require businesses to address environmental concerns. Its proactive approach has given convenience to investors in Vietnam. “As SCGP also has ESG policy, I have laid down clear ESG guidelines. They cover four aspects: 1) Product Offering, which means our products must be eco-friendly and reduce resource usage without compromising quality. We do so either via an upgraded design or new technology. Our products must also be recyclable. Now, they are 99 percent recyclable. But we will make sure they become completely recyclable in the future. Our manufacturing operations, moreover, have now used recycled content in place of virgin plastic; 2) Operation Efficiency, which means we are pursuing the goal of lowering energy consumption and reducing waste through machinery upgrades over the next five years. With this goal, our manufacturing will consume less energy and emit less carbon; 3) Marketing, which includes our initiative to collaborate with B2B customers in the production of green packaging; and 4) Circular Economy, which materializes in the form of our trade-in program. Duy Tan has produced housewares. For these products, our customers may hand over their old items to trade up. Their old stuff will then be crushed and recycled into plastic pellets, which can be used as raw materials.” Plan for Every Step, KPI Identified “The successful implementation of ESG requires a comprehensive policy encompassing trading, manufacturing, and human resources. Based on this policy, Duy Tan has a medium-term plan, a long-term plan, and annual plans with clear key performance indicators (KPIs) in place for executives and different departments to follow. While different units have different missions to do under the scope of their work, they are moving in the same direction. “The challenge surrounds educating and communicating with all executives and employees so that they have the right knowledge and understanding. Aside, we need to work with stakeholders so as to mutually prepare clear guidelines. We have made sure our stakeholders understand there are additional costs and procedures for the production of eco-friendly products.” Fewer Environmental Impacts, Better Quality of Life “Our ESG-based organizational development has appealed to the new generation. Many young people with environmental responsibility and a sense of sustainability are interested in working for us. Our employees feel proud because Duy Tan is not solely focused on profit-making. For our corporate clients, we have conducted joint campaigns to promote a good corporate image based on ESG. End-consumers, meanwhile, know they are socially responsible when choosing our products. Our approach is friendlier to the environment. With fewer environmental impacts, quality of life gets better and so does our society.” Proactive Learning & Being Open to Change Asked about his work philosophy, Mr. Chamornwut said he always did his best so that he would have no regrets later. This executive, though believing much in teamwork, has regularly asked himself, “What can I do here? If yes, have I done it yet?” “SCGP has expanded its businesses continuously. So, my advice to younger staff is that they should embrace the followings:1) Knowledge: It is necessary to keep learning because the company’s businesses will not be restricted to paper or boxes; 2) Proactive Learning, which will enable them to keep pace with changes or new business trends; 3) Work Efficiency in every aspect, which means they support collaborations and avoid focusing just on their job responsibilities; and 4) Open to Change mindset, which is needed at the time the company is diversifying its businesses.” News Release Download Related Contents Loading Data…