SCGP maintains revenue target as profits surge

SCG Packaging Plc (SCGP) has reaffirmed its revenue target of 130 billion baht for 2026, citing strong demand growth in Vietnam and Indonesia as key drivers.

The company reported a solid performance in the second quarter, with sales revenue rising 3% year-on-year to 32.4 billion baht and net profit surging 128% to 2.3 billion baht.

Chief executive Wichan Jitpukdee said packaging consumption increased after holiday periods and harvest seasons in both countries, increasing export volumes.

In Thailand, government cost-of-living measures and promotional campaigns tied to the World Cup also supported consumer goods and food packaging demand, he said.

However, SCGP faced higher costs for raw materials, energy and freight, partly due to disruptions linked to the Middle East conflict.

Despite these pressures, the company achieved operational improvements, particularly in Indonesia, where operations returned to profitability. This turnaround was driven by higher domestic sales, price adjustments, cost optimisation and improved production efficiency.

Vietnamese operations also posted robust growth, supported by economic expansion and resilient domestic consumption.

SCGP is preparing to expand in Vietnam, with plans to increase corrugated container capacity by 26,800 tonnes per year.

The company's factory is located at Vina Kraft Paper Co under SCGP in Ho Chi Minh City. The investment, valued at 748 million baht, aims to capture rising demand in the fast-growing market.

For 2026, SCGP set aside 10 billion baht for investment, following 2.38 billion baht already spent on mergers, partnerships and new projects.

Mr Wichan said the company is in talks regarding several medium- and large-scale merger and partnership deals, with Vietnam considered a priority market due to its rapid growth and role as an export base.

He said investment focuses on four segments: paper, polymer packaging, food packaging and healthcare.

SCGP also continues to strengthen its competitiveness in Indonesia by increasing domestic sales and applying advanced technologies such as artificial intelligence and machine learning to improve efficiency, cost management and quality control.