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SCGP Sets a 15% Increase in Revenue Goal

SCGP Sets a 15% Increase in Revenue Goal

SCG Packaging Plc (SCGP), a key player in the integrated packaging chain in Southeast Asia, maintains its revenue target to surge by 15% annually to 150 billion baht in 2024, propelled by the rising demand for packaging products in Vietnam.

Even with the challenge posed by the influx of low-cost Chinese products into ASEAN countries, including Thailand, SCGP remains confident in its competitive edge. CEO Wichan Jitpukdee highlighted SCGP’s strength in providing innovative products with significant value additions.

The company is actively pursuing its investment plan of 10 billion baht, which encompasses mergers and partnerships (M&P) in sectors showing high growth potential.

SCGP is currently engaged in discussions for 2-3 M&P deals and aims to finalize them within the year. These discussions include a deal in the healthcare and medical field, according to Mr. Wichan.

Geopolitical conflicts such as the Israel-Hamas conflict and tensions in the Red Sea are being closely monitored by SCGP due to their potential impacts on the company’s operations and the overall economy.

Mr. Wichan foresees brighter business prospects in the latter half of the year, with optimistic market conditions in Vietnam and Indonesia expected to drive increased demand for SCGP’s products, particularly in the food and beverage sector. Additionally, growth in demand for its products within the healthcare and medical sectors is anticipated.

For the first half of 2024, SCGP reported total sales revenue of 68.1 billion baht, marking a 3% increase from the same period in 2023.

In the second quarter alone, sales revenue hit 34.2 billion baht, demonstrating a 6% growth year-on-year. This growth was accredited to higher sales volumes in both the integrated packaging and fibrous segments, alongside effective management of raw material and energy costs.

SCGP is actively developing sustainable packaging solutions to secure carbon footprint certification, with a focus on collaborating with customers to reduce greenhouse gas emissions throughout the supply chain.

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