SCGD announces operating results for the 4th quarter and 2023. Moving forward with a strong brand strategy and Sales channel coverage over ASEAN

SCGD announces operating results for the 4th quarter and 2023. Moving forward with a strong brand strategy and Sales channel coverage over ASEAN. Ready to grow in every market situation.

Mr. Numpol Malichai, Chief Executive Officer and President SCG Decor Public Company Limited or SCGD, the leader in decorative surface materials and sanitary ware businesses in the ASEAN, revealed SCGD operating results for the 4th quarter of 2023. The company had sales revenue of 6,802 million baht and net profit of 179 million baht, a decrease of 5 and 26 percent from the previous quarter, respectively.

In terms of operating results for 2023, excluding the impact of restructuring and related expenses, the company had a total sales revenue of 28,312 million baht, a decrease of 6 percent compared to the previous year, and a profit of 817 million baht, a reduction of 30 percent from the same period last year.

The critical factor is purchasing power in foreign markets, including the fluctuations in the real estate market in Vietnam, along with energy prices that have continued to rise in the first half of 2023. However, positive factors still affect production costs, namely the price of natural gas, which has decreased since about the middle of last year. The company can maintain the average selling price of tiles and sanitary ware higher than in the previous year. The primary income from sales in 2023 comes from sales in Thailand, both the Surface Decoration business and the Sanitary Ware Business.

However, according to the overall economic picture and the ceramic tile industry in the ASEAN region, the company believes the ceramic market situation will likely improve, which shows signs of gradually recovering in each country.

SCGD has strengths in product brands that are recognized regionally. Including distribution channels that cover the entire region, SCGD has simultaneously strengthened the potential of distributors. For example, there is cooperation between Prime Group, the leader in the floor tile business and wall coverings in Vietnam, and business partner Crocodile Vietnam Co., Ltd., selling innovative products in the cement adhesive and grout product group. Under the brand Crocodile, Through Prime Group's network of more than 120 strong distributors

Recently, it has moved forward with its plan to expand its sanitary ware business (Bathroom), which is another core business. To become a regional leader, the COTTO brand joins hands with HANSGROHE and AXOR, world-class German sanitary innovation leaders. Prepare to revolutionize Thailand's luxury sanitary ware market and expand further in ASEAN.

For Vietnam, the goal is to expand the middle-upper market from a project to increase the production capacity of ceramic tiles, porcelain tiles, and large tiles, products with an average selling price higher than general tiles to gain the popularity, Including pushing to expand the market and respond to the increasing demand for porcelain tile products.

The company's investment in Thailand, according to the plan to increase production lines, "SPC vinyl tiles" is expected to be able to enter the Thai market in the middle of this year. The SPC/LVT market is a market that still has relatively high growth in Thailand, Vietnam, the Philippines, and Indonesia.

The company also places importance on investment projects to help reduce energy costs following the ESG guidelines; it also helps increase competitiveness and the ability to earn income. In the past year, some projects were completed, such as an investment project to improve an extensive tile production line, which will begin production starting in mid-2023, aiming to reduce costs by more than 40-50 million baht per year, a solar installation project. Additional cells in Thailand and Vietnam, approximately 14.3 MW, are expected to help reduce other costs by more than 50 million baht annually.

For 2024, the company still has investment plans and operations to reduce energy costs continuously, including installing the Hot Air Generator from last year at 3 factories in Thailand. If all projects are completed, energy costs will be saved approximately 60 -70 million baht annually.