Bangkok, 29 January 2025 – SCGD’s 2024 performance achieved a net profit of 810 million baht, marking a 147% increase despite the slowdown in the ASEAN market. This remarkable growth followed the company’s business restructuring and enhanced production processes, which strengthened its competitive capabilities through key strategies: 1) Focusing on the continuous development and production of High Value Added (HVA) products; 2) Investing in renewable energy to reduce costs; and 3) Leveraging artificial intelligence (AI) and robotics. With ASEAN markets poised for recovery in 2025, SCGD has allocated 4 billion baht for strategic investments to expand HVA production capacity and broaden distribution channels across ASEAN. The company has set a revenue growth target of 5% and a continuous dividend payout.
Numpol Malichai, Chief Executive Officer and President of SCG Decor Public Company Limited, or SCGD, the leading Decor Surface and sanitary ware business in ASEAN, said, “In 2024, the company recorded revenue of 25,563 million baht, a 10% decrease from the previous year. However, EBITDA reached 3,134 million baht, reflecting a 4% increase y-o-y, with net profit surging by 147% to 810 million baht. These figures include one-time expenses totaling approximately 100 million baht, covering costs related to business restructuring and damages caused by flooding at a plant in the Philippines. In Q4/2024, SCGD achieved revenue of 5,978 million baht, with EBITDA of 604 million baht, and a profit of 80 million baht. These represent y-o-y decreases of 12%, 24%, and 45%, respectively, due to the aforementioned one-time expenses. Furthermore, SCGD successfully reduced working capital by 10%, equivalent to over 500 million baht, through effective inventory control and improved management of account receivables.”
At the end of 2024, the company reported total assets of 39,823 million baht and maintained a Net Debt-to-EBITDA ratio of 1.4 times, reflecting strong cash flow. The Board of Directors resolved to propose to the Annual General Meeting of Shareholders the approval of the 2024 annual dividend payment at a rate of 0.20 baht per share. An interim dividend of 0.10 baht per share was already paid on 22 August 2024, and the final dividend of 0.10 baht per share is scheduled to be paid on 23 April 2025, with the XD (ex-dividend) date set for 31 March 2025.
Over the past year, the company has enhanced its competitive capabilities through: 1) Focusing on the continuous development and production of High Value Added (HVA) products. In 2024, the company increased production lines for large-sized glazed porcelain tiles in Vietnam and Thailand, with a combined capacity of 14 million square meters. Recently, the company expanded its production line by an additional 5 million square meters in Pho Yen City, Vietnam, with completion expected by mid-2025; 2) Accelerating cost reductions through renewable energy, achieving annual cost savings of over 280 million baht. The company has utilized biomass fuel for 20% of its energy needs and solar energy for 10%, with a target to increase biomass energy usage to 46% and solar energy to 15% by 2030; and 3) Leveraging artificial intelligence (AI) and robotics to respond more effectively to market demands. These technologies include quality inspection of tiles during production, robotic arms for sanitary ware manufacturing, automated systems for product handling and packaging, and production adjustments to align with market demands.
Furthermore, SCGD continues to focus on sustained growth across its decor surface business, Bathroom business, and Complementary businesses. Additionally, SCGD has strengthened its distribution channels in ASEAN by opening 15 new stores domestically and internationally. These include one COTTO LiFE store in Don Mueang and eight Klang Ceramic stores in Thailand, four CTM stores in the Philippines, one OK Tile Center store in Cambodia, and one V Ceramic store in Vietnam. SCGD has also established over 170 dealers for Bathroom in ASEAN, resulting in international Bathroom sales of approximately 500 million baht, an annual increase of 7% compared to the previous year. The company has also adjusted its portfolio of related products, such as tile adhesives, grouts, kitchen sets, doors and windows, and countertop tiles, to align with market trends, driving sales of related products and services to 416 million baht, an increase of 18% y-o-y.
Moving forward to 2025, the company targets a 5% increase in revenue and over 5% growth in EBITDA. This outlook is supported by early signs of recovery in the decor surface, and bathroom markets in ASEAN, driven by government economic stimulus measures both domestically and internationally. Thus, the company plans to allocate 4,000 million baht to support its future growth by expanding plants to increase HVA product production capacity and expanding distribution channels to cover the entire ASEAN region.
In alignment with its commitment to ESG principles, SCGD was selected by the Stock Exchange of Thailand as one of the “SET ESG Ratings” sustainable stocks in the Real Estate and Construction (PropCon) sector, achieving an “A” rating. SCGD was also included in the “SETESG Index” for 2024, reflecting its commitment to sustainable growth and delivering good returns to investors while upholding responsibilities to stakeholders and the environment. Furthermore, SCGD achieved a Corporate Governance Report (CGR) score of 5, or “Excellent,” in the Real Estate and Construction sector as part of the 2024 corporate governance assessment of Thai listed companies.
Published on: Jan 29, 2025
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