Mitihoon – SCGD announced stronger Q2/2025 operating results with continued profitability improvement compared to the previous quarter. Profit excluding business restructuring expenses reached 283 million baht, increased +19% from energy cost reduction projects. The company is preparing to capitalize on opportunities from the recovery of Vietnam’s real estate market and enhance global market competitiveness by accelerating production and procurement of HVA and New Growth products. Moving forward with agile adaptation to prepare for severe economic volatility, the company presents three intensive strategies: 1.) Establishing Vietnam as a production and export base to strengthen global market competitiveness in both production costs and increasing glazed porcelain tile production capacity to support the growing markets 2.) Expanding product portfolio in Complementary businesses and New Growth businesses, penetrating all market segments with HVA products and quality sourcing products at competitive prices and costs 3.) Focusing on cost reduction through business restructuring and continuous working capital reduction to enhance competitiveness. SCGD increased dividend payments to 0.15 baht to take care of shareholders during global and Thai economic volatility, demonstrating confidence in growing business with strong cash flow and financial stability.
Mr. Numpol Malichai, Chief Executive Officer and President of SCG Decor Public Company Limited (SCGD), a leader in ceramics, Decorative Surfaces, and Sanitary ware business in the ASEAN region, stated: “Operating results excluding business restructuring expenses in Q2 2025 showed EBITDA of 879 million Baht, up 5% from the previous quarter, with profit of 283 million Baht, up 19% from the previous quarter, driven by energy cost reduction projects, accelerated high-value-added (HVA) product manufacturing, and business restructuring resulting in company’s lowered expenses. The company achieved EBITDA on sales of 15.2% and net profit margin of 4.8%, the highest in 5 quarters since Q2 2024.
Additionally, tile sales volume in Q2 increased to 31.7 million square meters, benefiting from regional market recovery, particularly in Vietnam, where SCGD operates the PRIME business that can increase cost competitiveness against world-class players.
Through proactive adaptation and readiness to handle volatility, while closely monitoring global and domestic economic conditions, the company is confident that the business can capitalize on opportunities from economic challenges through three intensive strategies: 1.) Establishing Vietnam as a production and export base to strengthen its competitiveness in global scale; supporting by its ability to achieve production costs comparable to world-class players, while accelerating glazed porcelain tile production capacity to 25% of total production capacity in 2025. This offers Vietnam to have higher glazed porcelain tile sales volume aligned with market popularity and demand, as well as becoming the production base to support its position as export hub. 2.) Expanding product portfolio in Complementary and New growth businesses, penetrating all market segments with HVA products and quality sourcing products at competitive prices and costs. Examples include High-Value-Added (HVA) product, where the company currently has HVA sales of over 37% of sales revenue compared to 34% last year, while expanding Complementary business product portfolio in Thailand to increase sourcing diversity opportunities, addressing specific customer needs. 3.) Focusing on cost reduction and administrative expense to enhance competitiveness, including energy cost reduction of over 36 million per year through increasing usage of electricity from solar energy and heat energy from biomass projects that completed this year, plus additional energy saving projects such as Hot Air Generator project at Nong Khae Industrial Estate factory to replace fossil fuel use, scheduled for completion in Q1 2026. Administrative expense reduction through continuous lowering working capital by controlling inventory and managing trade receivables, plus Business Restructuring using AI and digital technology to improve efficiency, achieving total cost reduction of over 140 million baht per year.”
The company has total assets of 38,787 million baht and maintains financial strength with long-term growth capability, including prudent capital and spending management aligned with future growth plans. Recently, the company signed Memorandum of Understanding (MOU) with AXENT Switzerland to explore opportunities for comprehensive growth in the smart sanitary ware market across Southeast Asia.
Furthermore, in the first half of 2025, the company expanded its sanitary ware business internationally and increased to 177 distributors, with regional sanitary ware sales of 244 million baht. For expanding Complementary products and services business within Thailand to extend into ASEAN in the future, in the first half of 2025, the company achieved sales from Complementary products and services of over 208 million baht, up 14% compared to the same period last year.
Based on these strong operating results, the Board of Directors approved interim dividend payment from first-half operating results at 0.15 baht per share, with interim dividend payment scheduled for August 27, XD date set for August 8, 2025, and record date for dividend eligibility on August 13, 2025.
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