SCG Packaging bullish on boosting revenue in H2
"Packaging demand in Asean is expected to continue its upward trend, particularly for food, beverages, and consumer goods," said chief executive Wichan Jitpukdee.
He attributed the growth to the state stimulus measures aimed at boosting consumer spending and projected GDP growth rates that remain higher than those in other regions, particularly in Vietnam, Indonesia and the Philippines.
Inventory restocking activities toward the year end has also been factored in to the projection of good sales during the latter half of the year, he said.
SCGP posted total revenue of 31.5 billion baht in the second quarter of this year, with profit standing at 1.01 billion baht.
The results were driven by a focus on sales in Southeast Asia, supported by increased domestic consumption, effective cost management of recovered paper and the use of technology and artificial intelligence (AI) to enhance cost efficiency.
Good sales were also complemented by an acceleration in exports to the US ahead of scheduled import tariff adjustments, particularly for consumer goods and food and beverage products, said Mr Wichan.
However, in the pulp and paper business, sales volume decreased due to a slowdown in demand from the textile and garment industries.
Mr Wichan applauded the use of AI and machine learning to enhance business performance, particularly in Indonesian operations, where AI was put into practice for energy optimisation, increasing the use of domestic recovered paper and helping to manage financial costs effectively.
He said the impact of the US's tariff on its products is limited because current revenue from the American market accounts for 4% of its total revenue, derived from the export of consumer products.
"But the impact of reciprocal tariff measures from countries with unresolved policies still needs to be closely monitored," said Mr Wichan.
SCGP continues to expand is exports to new markets offering great potential, such as India, Bangladesh and Australia.
The firm remains intact from the Thai-Cambodian territorial conflict because it has not made investments there but faces some indirect impact from its clients who need to shift to transport goods by ship which will raise expenses.
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