SCGD reports continuous improvement in Q1 2025 financial performance compared to the previous quarter, with profits of 217 million baht, an increase of 171% due to reduced expenses from business restructuring and efficient management of sales costs and financial expenses. The company is addressing US import tariffs and adapting to trade war challenges by maintaining cost competitiveness and improving production efficiency in both Thailand and overseas operations. The company is advancing with four key strategies: 1) focusing on retaining existing customers and expanding to new customer groups worldwide, 2) adjusting production promptly to align with market demands, 3) aiming to lead in production cost management to enhance global competitiveness, and 4) increasing opportunities through importing or outsourcing quality products at competitive costs. Additionally, the company is strictly maintaining financial liquidity and financial position while carefully considering investments, preparing the business to overcome global economic challenges.
Mr. Nampol Malichai, Chief Executive Officer and Managing Director of SCG Decor Public Company Limited (SCGD), a leader in ceramic, surface materials, and sanitary ware in the ASEAN region, stated that “Q1 2025 performance shows EBITDA of 808 million baht, a 34% increase from the previous quarter, with profits of 217 million baht, up 171% from the previous quarter. This improvement stems from reduced expenses due to business restructuring and efficient management of sales and financial costs according to plan. Additionally, the company has accelerated cost reduction projects, decreased energy consumption, and continuously improved efficiency, resulting in increased profitability. The company achieved an EBITDA margin of 13.7% and a net profit margin of 3.9%, higher than the previous quarter.
Although in 2024, the company’s export revenue to the United States was less than 1% of total sales, to address market changes during the 90-day postponement of retaliatory tariffs and potential future uncertainties of increased imports from other countries into ASEAN, the company is accelerating its adaptation to counter trade wars and prepare for US import tariffs by maintaining cost competitiveness and enhancing production efficiency both in Thailand and overseas. The company is advancing with four key strategies:
- Focus on maintaining existing customers and expanding to new customer groups globally while accelerating exports to address increasingly diverse, specific, and high-potential market demands such as Australia, Canada, and the Middle East
- Adjusting production promptly to align with market demands, efficiently managing inventory, and aligning costs with sales
- Aiming to lead in production cost management to enhance global competitiveness, which will increase sales and profit margins, such as accelerating the porcelain tile project in Vietnam with cost advantages or making SPC products in Thailand competitive with global manufacturers, resulting in increased sales volumes of approximately 30% for porcelain tiles in Vietnam and 40% for SPC products in Thailand compared to the same period last year despite the slowdown in the market
- Increasing opportunities through importing or outsourcing quality products at competitive costs, offering a variety of products with SCGD standard quality at accessible prices to provide more options for consumers, resulting in an increase in SCGD’s import ratio to over 18% compared to 17% in the same period last year. However, to mitigate impacts from uncertainties, the company is cautious about investments and prioritizing investment projects to strictly maintain financial liquidity.”
The company has added cost reduction and production efficiency improvement projects to be completed this year, which are expected to reduce costs and increase profits by approximately 100 million baht. These include installing a Biomass Gasifier system to replace high-priced coal at the Pho Yen factory in northern Vietnam, upgrading technology and machinery, and expanding Glazed Porcelain production at Pho Yen factory phases 1 and 2 with a combined production capacity of over 5 million square meters per year to meet demand in Vietnam. Additionally, solar energy projects at Nong Khae Industrial Estate factory (4 megawatts) and Hin Kong factory (1.5 megawatts), and installing a Hot Air Generator system at Nong Khae Industrial Estate factory to replace fossil fuels.
Furthermore, the company continues to focus on growth in surface materials, sanitary ware, and complementary businesses, accelerating responses to increasingly specific customer demands. In the first quarter, the construction of the fifth COTTO LiFE store branch in Phuket was completed, covering an area of 1,109 square meters. The company has also expanded its sanitary ware business overseas and increased the number of distributors to 170, with overseas sanitary ware sales reaching 126 million baht. The expansion of related products and services within Thailand and ASEAN generated sales of over 109 million baht, an increase of 28% from the previous year.
Published on: Apr 25, 2025
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