SCGD Q2 and First-Half 2026

SCGD's Q2 and First-Half 2026 Earnings Continue to Grow -Accelerating Business Transformation in Vietnam and Thailand While Partnering with a Chinese manufacturer to Develop Smart Toilets

Bangkok – 22 July 2026: SCGD today announced its second-quarter and first-half 2026 results (excluding non-recurring items), reporting continued growth. In the second quarter, the company posted Adjusted EBITDA of 805 million Baht and net profit of 268 million Baht, and approved an interim dividend payment of THB 0.155 per share. The company is accelerating its business transformation to strengthen long-term competitiveness through a proactive two-year strategy (2026–2027), which includes expanding production capacity in Vietnam, enhancing the efficiency of its Thai manufacturing base to compete with imported products, and partnering with China manufacturer to develop high-quality Smart Toilets to support the growing sanitaryware market.

Mr. Numpol Malichai, President and CEO of SCG Decor Public Company Limited (SCG Decor or SCGD), the region's leading decorative surface and sanitaryware business in ASEAN, said: "In the second quarter and first half of 2026, SCGD's operating performance grew when excluding non-recurring expenses, most of which related to asset impairment items and business restructuring expense from the Plant Consolidation project in Thailand. In the second quarter, the company generated sales revenue of 5,370 million Baht while maintaining profitability, with Adjusted EBITDA of 805 million Baht and Adjusted Profit attributable to Owners of the Company of 268 million Baht. For the first half of 2026, total revenue reached 10,922 million Baht, with Adjusted EBITDA of 1,566 million Baht and Adjusted Profit attributable to Owners of the Company of 500 million Baht. This performance was driven by growth in regional revenue, particularly in Vietnam, cost management to mitigate the impact of energy price volatility, and prudent financial management, all of which helped sustain profitability. The non-recurring expenses were largely one-time and non-cash items."

Amid ongoing economic volatility and global uncertainty, SCGD is advancing its proactive two-year strategy (2026–2027) to strengthen competitiveness and create long-term growth opportunities through two key initiatives:

1) Vietnam capacity expansion proceeding on schedule to support both regional and export market growth. This is in line with the strategy to position PRIME Vietnam as an export production base. PRIME's sales volume of glazed porcelain tiles rose 18%, while export volume grew more than 71% year-on-year. Once the expansion project is completed in Q2 2027, PRIME's glazed porcelain tile production capacity is expected to account for approximately 40% of total capacity.

2) Upgrading Thailand's production base while advancing new partnerships. Through the consolidation of ceramic and glazed porcelain tile production, along with investment in a new automated glazed porcelain tile production line, the company expects to reduce unit production costs by approximately 16–20% once the project is completed in Q3 2027, enhancing competitiveness against imported products. At the same time, SCGD is expanding into the smart sanitaryware business by establishing a joint venture between Siam Sanitary Ware, ware producer of the leading COTTO brand, and Chinese partner Axent Switzerland AG. The joint venture will establish a manufacturing and assembly plant for Smart Toilets and tankless toilets in Thailand, with an annual production capacity of 96,000 units, to serve the growing market and strengthen the sanitaryware business.

Mr. Sitichai Sukkitprasert, Chief Financial Officer of SCGD, said: "SCGD remains focused on driving growth through efficient business management — including cost management, cash flow management, and appropriate capital allocation — while maintaining financial discipline to support value-adding investments and strengthen the business's competitiveness. The company holds total cash and cash equivalents of 9,218 million Baht, representing 25% of total assets, with a net debt-to-EBITDA ratio of 1.4x and a net debt-to-equity ratio of 0.2x, reflecting financial flexibility to support future investment plans."

In addition, SCGD continues to manage a diverse portfolio of new growth and complementary products to expand consumer choice, driving sales of related products and businesses in Thailand and overseas. The company is also accelerating its expansion across ASEAN by growing its network of sanitaryware distributors abroad, resulting in year-on-year growth in ASEAN sanitaryware sales.

Mr. Numpol Malichai concluded: "SCGD has been recognized as part of the 'ESG Emerging List' of sustainable, investment-worthy companies and has been selected as a constituent of the ESG100 securities group for the year, based on an assessment by the ESG Rating unit of the Thaipat Institute — reflecting the company's commitment to sustainable business leadership. In addition, the Board of Directors has approved an interim dividend payment based on first-half 2026 operating results, at a rate of THB 0.155 per share, totaling 256 million Baht (representing a 60% payout ratio of net profit excluding non-recurring expenses). The interim dividend will be paid on 19 August 2026, with a Record Date of 5 August 2026 and an XD (excluding dividend) date of 4 August 2026."