The share price of SCG Packaging Public Company Limited (SET: SCGP) dropped 8% to THB15.30 per share in the afternoon trading session following the report of net loss in its 4Q24 financial reports.
A net loss for 4Q24 was 57 million baht (-105% YoY and -110% QoQ) with net profit margin of -0.2%. The company stated that profitability declined YoY mainly due to higher raw material costs that affected packaging paper margin and full-quarter impact from additional stake in the Indonesia operation. Meanwhile, profitability dropped QoQ as a result of weaker regional packaging paper prices, a decrease in dissolving pulp sales volume due to annual maintenance activity, and a reduction in recycling business margin.
As for the performance in 2024, total revenue from sales was 132,784 million baht (+3% YoY). Revenue growth was primarily driven by growth in domestic demand, which led to an increase in sales volumes of packaging paper, fiber packaging, polymer packaging, and foodservice packaging. Additionally, the export market improved, especially in consumer related segments. Furthermore, lower inflation played a significant role in enhancing demand for durable goods.
Profit for the year was 3,699 million baht (-30% YoY) with net profit margin of 3%. EBITDA and profitability declined mainly due to the lower performance of packaging paper operations, which were affected by increased recovered paper costs, along with significant foreign currency fluctuations in ASEAN, particularly in the third quarter of 2024. Furthermore, the profit for the year included the impact from additional stake in Indonesia operations from September 2024. Despite the reduction in margins, efforts were made to enhance production utilization, operational excellence, and cost management across the value chain.
In consideration of the FY2024 financial performance, the Board of Directors has proposed for shareholder approval at the Annual General Meeting (AGM), a full year 2024 annual dividend payment of 0.55 Baht per share, of which 0.25 Baht per share was previously paid as an interim dividend on 21 August 2024. The final dividend payment of 0.30Baht per share will be on 21 April 2025, record date of 2 April 2025, and XD-date of 1 April 2025.