SCGP moves forward with its strategy to create continuous growth. Focus on developing packaging innovation Adjust product portfolio to support the market

SCGP reveals operating results for the first quarter of 2024, generating revenue from sales of 33,948 million baht, an increase of 1 percent, and profit for the period of 1,725 ​​million baht, growing 41 percent from the same period last year. from increasing production efficiency Cost management potential Adjusting the product portfolio to be consistent with the situation and increased sales volume Continue the M&P investment expansion plan, develop packaging innovations and increase production efficiency to create continued growth.

Mr. Wichan Jitpakdee, Chief Executive Officer SCG Packaging Public Company Limited or SCGP Said that the overall packaging industry in the ASEAN region is continuously recovering. From economic factors, the production sector, exports, and tourism of Thailand are good. As a result, various industrial sectors Use more packaging The integrated packaging business has sales growth in every product group. And we are starting to see signs of recovery in durable product packaging such as clothing and shoes due to falling inflation. Meanwhile, the packaging paper business received positive factors from increased domestic demand and exports in some areas. especially in South Asia Pulp and paper business division There was an increase in sales of food packaging due to the recovery in tourism. However, demand for some packaging was affected by the long New Year holidays in China and Vietnam. and the automotive industry that is slowing down Including the cost of raw materials, there is a trend of gradually increasing. Increased as demand for packaging increased. Energy costs are stable. As transportation costs rose since the beginning of the year amid geopolitical conflicts in the Middle East and began to decline in the second half of the quarter, SCGP has focused on building quality and sustainable growth. By adjusting the product portfolio to be in line with the market situation. and careful cost management to maintain an efficient strategic supply chain.

In the first quarter of 2024, SCGP had sales income of 33,948 million baht, an increase of 1 percent from the same period last year. From increased sales volumes in both the integrated packaging business line and the pulp and paper business line, EBITDA was 5,151 million baht, an increase of 15 percent from the same period last year. And profit for the period was 1,725 ​​million baht, an increase of 41 percent from the same period last year. From operating according to the growth strategy Effective cost management throughout the value chain Both increasing production efficiency to reduce costs by using Machine Learning and artificial intelligence or AI technology in the packaging paper production process. and effective cost management of recycled paper raw materials in the region with a comprehensive raw material procurement network in Thailand, Vietnam, the Philippines, and Indonesia, totaling 155 locations, increasing more than 1-fold over the past three years amid rising raw material prices.

SCGP plans a total investment budget of 15,000 million baht this year, divided into Merger & Partnership (M&P) of 10,000 million baht in businesses with growth potential, such as the consumer product packaging business. Paper packaging business Businesses related to health and medical equipment, etc., to support demand for packaging that is likely to continue to recover from the production and export sectors. Currently negotiating a deal that is expected to be concluded this year.

for growth through capacity expansion In March, SCGP successfully expanded its corrugated packaging production capacity in Samut Sakhon and Samut Prakan provinces. It has an additional production capacity of 75,000 tons per year, accounting for 9 percent of the original production capacity in Thailand. With modern production and printing technology such as robot systems, automation systems, and printing applications. The new production base is located close to the production base for frozen products for export. This makes it possible to support and respond to the needs of more customers. and help create a competitive advantage in transportation costs.

SCGP also aims to continuously develop packaging innovations to meet customer needs. and devise strategies to increase production efficiency to cope with fluctuating raw material costs and energy prices, and expand the use of machine learning and artificial intelligence or AI technology in the production process of packaging paper at factories in Indonesia and Vietnam. Including focusing on the efficient use of resources and reducing greenhouse gas emissions to net zero by 2050 to join in reducing carbon according to the ESG concept framework.

Most recently, SCGP received a total ESG performance evaluation score of 85 from S&P Global Corporate Sustainability Assessment (CSA) and maintained its position in the top 1% in the world for the second year in a row, which comes from its commitment to doing business. according to sustainability guidelines and received the Best Green Loan award in the Sustainable Finance category from The Asset Triple A Awards 2024 by The Asset, Asia’s leading financial magazine. From the support of Green Loan by Bank of Ayudhya Public Company Limited to invest in environmental projects based on ESG concepts.