SCG Decor Public Company Limited (SCGD) reported second-quarter 2025 results with a gross profit margin of 28.3% and EBITDA on sales of 15.2%, marking the highest performance in five quarters. This achievement stems from strategic initiatives focused on production efficiency improvements and cost reduction measures. The company has established Vietnam as its primary production base, driving a 21% quarter-on-quarter sales volume growth while advancing its value-added product portfolio and strengthening regional competitiveness.
Mr. Numpol Malichai, Chief Executive Officer and President of SCG Decor Public Company Limited, disclosed information during the SCGD Opportunity Day presentation of business information and operating results for the second quarter of 2025 on August 20, 2025. He stated that the company continues to advance with proactive adaptation strategies amid global economic volatility. The second-quarter 2025 operating results, excluding business restructuring expenses, achieved an EBITDA on sales of 15.2%, representing the highest level in five quarters. However, excluding foreign exchange rate impacts, the company successfully increased EBITDA and profit by 5% and 19% respectively from the previous quarter through effective cost management. This improvement was particularly driven by Vietnam market recovery, which resulted in significant sales growth, combined with energy cost reduction measures, raw material optimization, and working capital management initiatives that will establish a crucial foundation for enhancing long-term competitive capabilities.
SCGD has established four key strategic pillars to drive growth. The company is positioning Vietnam as its primary export base while opening new export markets in Singapore, Mexico, and the Czech Republic. Production capacity for Grace Porcelain tiles in Vietnam will be expanded by 5 million square meters in 2025, representing 25% of total production capacity. The company is increasing the proportion of imported products in Thailand that offer competitive cost advantages, with first-half sales increasing 37%, comprising over 58% of related business products compared to the same period last year. The value-added product portfolio is being expanded from 34% in 2024 to 37% in 2025.
Additionally, the company is accelerating profit efficiency improvements through solar cell and biomass installations, reducing energy costs by 36 million baht annually. Raw material cost reductions of 30 million baht and business restructuring initiatives have decreased working capital by 140 million baht per year. Strategic partnerships with global allies are being expanded to enhance competitive capabilities.
Progress on doubling growth through three core strategies includes expanding overseas sanitary ware business by increasing distributors to 177 entities, achieving overseas sales of 244 million baht, and studying opportunities in the Southeast Asian smart sanitary ware market. Decor surface product sales are growing, with SPC products increasing 39%. Related products and services business expansion in Thailand generated first-half sales of 208 million baht, growing 14% year-over-year.
Mr. Numpol noted that SCGD maintains a strong financial position with adequate cash flow. To demonstrate confidence in growth prospects, the company announced an increased interim dividend payment of 0.15 baht per share to support shareholders during the volatile economic period.
For the second-half 2025 outlook, the Vietnam market continues recovering well due to real estate sector stimulus measures and strong domestic demand. While Thailand faces challenges from extended holiday seasons and high household debt burdens, the company remains committed to continuously expanding its customer base and strengthening business operations to support long-term growth.
Published on: Aug 20, 2025