SCG Decor Public Company Limited (SCGD) is enhancing its profitability and competitiveness with cost reductions of approximately 100 million baht this year. The company receives strong support from Vietnam, Indonesia, and the Philippines. Management expresses confidence that US import tariff increases will have no direct impact on the company, while creating additional opportunities to import surface decoration materials to diversify product offerings, given SCGD’s position as the number one importer in its sector.
Mr. Smithi Kosicharoen, Chief Financial Officer (CFO) of SCG Decor Public Company Limited (SCGD), disclosed company information at the SCGD Opportunity Day business presentation and Q1 2025 operating results presentation on May 23, 2025. He indicated that profitability trends continue to improve in the second half of 2025. Following 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.
“SCGD maintains continuous profitability capabilities while advancing production efficiency improvements and cost reductions. We expect to achieve approximately 100 million baht in cost reductions this year. In Q1 2025, the company successfully increased biomass energy usage, replacing fossil fuels at 22% of total thermal energy, creating cost advantages lower than fossil fuel usage. Additionally, solar energy accounts for 10% of total electricity consumption. The company has completed and will complete projects capable of reducing costs by approximately 50 million baht this year, including increased production capacity for High Value Added (HVA) products such as Gres Porcelain tiles, contributing an additional 20 million baht in profit to support improved sales volume and profit margins. Business restructuring and working capital reduction initiatives generate cost savings of over 30 million baht. Simultaneously, the company maintains strong financial position and liquidity, with cash reserves (as of March 31, 2025) of 9,209 million baht.”
Regarding concerns about impacts from US import tariff adjustments and trade wars, although SCGD exports less than 1% of total sales to the United States, the company has prepared to adapt and address impacts while continuously seeking commercial opportunities. The company utilizes its competitive-cost Vietnam production base as a key export platform while adding new distributors in countries including Australia, South Korea, and Malaysia. ASEAN sales continue growing steadily, with current overseas sanitary ware sales of 126 million baht and over 170 additional distributors. The company continues leveraging its leadership in surface decoration materials through Merger and Partnership strategies, seeking additional production bases in Vietnam, opening the fifth COTTO LiFE branch in Phuket, and achieving 5% SPC sales growth compared to the same period last year. This includes expanding related products and services businesses in Thailand and ASEAN, with Q1 related products and services sales exceeding 109 million baht.
As the number one importer, SCGD recognizes opportunities to import additional surface materials to select quality products at appropriate prices, better fulfilling customer requirements.
“This period presents excellent opportunities for negotiation and product selection that are appropriate, while accelerating competitiveness enhancement. When markets recover, this will enable future profit generation for the company, including portfolio adjustments to increase global market competitiveness, allowing the company to export more.”
However, this year’s market conditions present challenges for the Thai domestic market. Q2 sales face seasonal slowdowns due to the extended Songkran festival holiday period. Vietnam shows improving trends from real estate sector stimulus measures. The Philippines demonstrates improved overall economic atmosphere from stable inflation and declining interest rates. Indonesia benefits from government housing projects supporting the real estate market.
Published on: May 26, 2025
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