Given the ongoing volatility in the global economy stemming from energy price fluctuations due to expanding unrest in the Middle East and economic uncertainty from unclear conclusions regarding US import tariffs, SCG Decor expresses confidence in its commitment to continuous operations aimed at strengthening competitive capabilities in the global market. The company focuses on enhancing efficiency through cost reduction and developing high value-added products.
Mr. Numpol Malichai, Chief Executive Officer and President, SCG Decor Public Company Limited (SCGD), stated that “Given the current situation, the company has been closely monitoring both global and domestic conditions. Although the company’s revenue from US exports represents less than 1% of total sales, we continue to maintain cost competitiveness and enhance production efficiency both in Thailand and internationally. We are proceeding with our plan to advance four strategic initiatives to address global economic volatility as follows:
- Focus on Cost Leadership and Enhanced Competitiveness: The company is accelerating the adoption of alternative energy sources that are both cost-effective and environmentally friendly to reduce energy cost volatility. It is expediting the development of value-added products and cost-effective consumer goods, such as the Grace Porcelain tile project in Vietnam, which offers cost advantages, and SPC products in Thailand designed to compete with global manufacturers. This has resulted in approximately 30% and 40% increases in sales volumes for Grace Porcelain tiles in Vietnam and SPC products in Thailand respectively compared to the same period last year. The company is also enhancing competitiveness through business restructuring to reduce expenses and working capital, thereby lowering financial costs. This year, the company expects to achieve savings of approximately 100 million baht and aims to compete effectively with global players.
- Expand Exports from Vietnam: Products such as Grace Porcelain tiles and ceramic tiles utilize Vietnam’s production base, which offers manufacturing costs comparable to global competitors, serving as a crucial foundation for expanding into new markets including Australia, South Korea, and Malaysia, where the company has established distribution networks ready to support growth.
- Strengthen Portfolio with Premium Quality Products: Leveraging advantages as the leading importer, the company can select high-quality tiles and sanitary ware at appropriate prices to serve customers and enhance profitability.
- Seek Collaboration and New Opportunities in Related Businesses: The company remains open to mergers, partnerships, and various forms of collaboration to create long-term growth.
These strategies have resulted in continuous improvement in the company’s profitability. In Q1 2025, the company achieved EBITDA growth of 808 million baht, representing a 34% increase from the previous quarter. EBITDA margin reached 13.7%, higher than the previous quarter’s 11.9%. Net profit stood at 217 million baht, increasing 171% from the previous quarter, while net profit margin reached 3.9% compared to 2.8% in the previous quarter. The company expresses confidence in its ability to navigate future volatility while proactively adapting and continuously seeking new business opportunities, leveraging cost efficiency strengths to compete effectively at the global level.
Published on: Jun 25, 2025