SCGP Reports 33% Growth in 3Q21 Earnings as M&P Pushes Sales Revenue Higher

SCG Packaging Public Company Limited (SCGP) has announced its 3Q21 consolidated financial statement through the Stock Exchange of Thailand as follows;

SCGP reported a net profit of 1,780 million baht, increased 33.38% from a net profit of 1,335 million baht in 3Q20 with a net profit margin of 6%. The increase of net profit for the period was mainly due to a rise in revenue from sales registered at 31,930 million baht, an increase of 37% YoY and increased 7% QoQ, mainly due to the business expansion from M&P (SOVI, Go-Pak, Duy Tan and Intan Group) and the easing of strict lockdown measures in Indonesia which resulted in higher demand in consumer’s products and electrical and electronic appliances.

In 3Q21, integrated packaging chain revenue from sales amounted to 27,256 million baht (before inter-segment elimination), an increase of 35% YoY and increased 9% QoQ, with main effect from the consolidation of Duy Tan and Intan Group while the extensive customer network of SCGP enabled the company to export more packaging paper during the soft domestic demand amid the pandemic.

Fibrous chain revenue from sales registered at 5,315 million baht (before inter-segment elimination), an increase of 50% YoY and slightly decrease of 1% QoQ with the same reason as above. EBITDA was 965 million baht, increased 253% YoY and decreased 16% QoQ with EBITDA margin of 18%. Meanwhile, revenue from foodservice packaging in 3Q21 registered at 1,127 million baht, increased 265% YoY and increased 11% QoQ which was in line with Fibrous Chain’s transformation plan to increase proportion of foodservice packaging. As a result, revenue proportion of foodservice packaging was at 24% of total revenue from sales of FC in 3Q21 up from 10% in the same period of last year.