SCG Packaging Public Company Limited (SET: SCGP) has announced its 1Q23 consolidated financial statement through the Stock Exchange of Thailand as follows;
| Year | 1Q23 | 1Q22 |
| Net Profit (Loss) Million Baht |
1,220 | 1,658 |
| Earning Per Share (Baht) |
0.28 | 0.39 |
| % Change | -26 | |
In 1Q23, SCGP reported a net profit for the period of THB1,220 million (-26% YoY and +171% QoQ) with a net profit margin of 4%. The YoY decrease in profitability was mainly from the reduction in sales volume and product prices of packaging paper amidst weak regional demand while QoQ increase in profitability was driven by improvement in cost elements, especially on raw materials and freight, along with recovery of packaging paper sales volume in strategic domestic markets and export. EBITDA recorded at THB4,471 million (-9% YoY and +26% QoQ) with an EBITDA margin of 13%.
For the 1Q23 performance, total revenue from sales amounted to THB33,729 million (-8% YoY and +1% QoQ). YoY decline was due mainly to (1) lingering effect from China’s lockdown which affected overall demand of packaging paper along with sales volume and product prices (2) high inflation and interest rates that reduced consumers’ spending especially on non-essential goods. On a QoQ basis, revenue improvement came mainly from the increase in sales volume in both integrated packaging and fibrous business in the midst of the country’s reopening and resumption of domestic economic activities, including the increased packaging paper exports after China’s reopening.
Demands for food, beverages and consumer goods in ASEAN, particularly the portions that related to domestic consumptions, improved in the midst of recovery in service sector, traveling and tourism activities. Regional economy was also supported by the reopening and resumption of demand in China which helps alleviate bottleneck and shortage of intermediate raw materials in the industrial supply chain.
Nonetheless, high inflation and surging interest rates remained the key factors that restrained consumers’ disposable incomes. As a result, demands for non-essential products such as apparel, footwear and electronic goods were suppressed regionally and globally which also led to lower export activities from ASEAN to Europe and North America.
