SCGP Reports ฿1.3Bn of Profit in 3Q, Expecting to Expand 4 Projects within 3Q21!

SCG Packaging Public Company Limited (SCGP) has reported its 3Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

SCGP reported a net profit of 1,335 million baht in 3Q20, decreased 9.23% compared to the same period last year.

In 3Q20, revenue from sales of SCGP registered at 23,287 million baht, increased 8% QoQ due to a slight recovery in demand of durable goods such as Electronics and Electrical products and automotive industry, continual growth of demand in essential products and a recovery in export volume. While revenue decreased 5% YoY as a result of COVID-19 pandemic.

Similarly, EBITDA was 4,121 million baht, increased 4% QoQ and decreased 1% YoY to while achieving an EBITDA margin of 18%, close to 3Q19. Consolidated Profit for the period was 1,335 million baht, decreased 30% QoQ primarily due to unrealized foreign exchange of Indonesian Rupiah after tax and non-controlling interest amounted to 111 million baht (In 2Q20 : unrealized foreign exchange gain 482 million baht) and decreased 9% YoY with net profit margin of 6%.

 

In 3Q20, revenue from sales amounted to 20,209 million baht, an increase of 10% QoQ in accordance with the increase in demand for consumer products and demand recovery for durable goods while decreasing 1% YoY.

 

Existing Project Expansions

As at third quarter of 2020, SCGP has four projects under construction with total capital expenditures of 8,266 million baht located in Vietnam, Indonesia, Philippines and Thailand;

Vietnam, Long An city (BATICO#2) – Project expansion of flexible packaging – This project is expected to add capacity of 84 million m2 per year or increased 20% from existing capacity. Capital expenditures estimated to amount to 543 million baht and expected to start operations in 4Q20

Indonesia, Surabaya city (Fajar#2) – Project expansion of containerboard and duplex paper – This project is expected to add capacity of 400,000 tons per year or increased 29% from existing capacity. Capital expenditures estimated to amount to 1,735 million baht and expected to start operations in 1Q21.

The Philippines, Bulacan city (UPPC#3) – Project expansion of containerboard – This project is expected to add capacity of 220,000 tons per year or increased 88% from existing capacity. Capital expenditures estimated to amount to 5,388 million baht and expected to start operations in the 3Q21.

Thailand, Samut Sakorn province (Prepack#2) – Project expansion of flexible packaging – This project is expected to add capacity by 53 million m2 per year or increased 14% from existing capacity. Capital expenditures estimated to amount to 600 million baht and expected to start operations in the 3Q21.

 

As the COVID-19 pandemic continues to affect the global and regional economy, packaging remains a resilient essential in everyday life, especially in the segments related to health and hygiene, food and beverage, and e-commerce. At the same time, demand recovery of durable goods continues to be challenging.

SCGP adhere to develop and offer comprehensive packaging solutions to our customers and expand the business through ASEAN to strengthen our integrated packaging business model. There are four projects in the pipelines in the integrated packaging chain, which will begin to generate revenue for SCGP beginning from second half of 2020 to 2021. In addition, the acquisition of SOVI (corrugated box and offset laminated packaging business in Vietnam) is expected to be consolidated in December 2020.