SCGP forecasts to earn 150 billion in revenue in 2024

Editorial staff
Business / SCGP

SCGP forecasts to earn 150 billion in revenue in 2024

SCGP plans to boost its annual revenue to 150 billion baht, thanks to a demand recovery this year.

Wichan Jitpukdee, chief executive officer of SCG Packaging Plc (SCGP) said the packaging industry for 2024 is positive, driven by a boost in tourism and rebound in exports. Also, inflation rates and interest rates are projected to decline. The company has mapped out its plan for 2024 with strategic approach to drive revenue and profit, setting sales target of 150 billion baht.

Mr. Wichan Jitpukdee

He said the overall packaging industry is expected to continue its recovery in 2024, especially in ASEAN countries, including Thailand, Vietnam, Indonesia, and also in China. Positive factors contributing to this recovery consist of stimulus policies including in tourism and an anticipated export rebound.

A downward trend in inflation rates and interest rates is expected to impact consumer purchasing power positively. Meanwhile, energy and recycled paper prices are trending toward sideway up, with potential adjustments in global freight costs from ongoing geopolitical conflict in the Middle East.

SCGP is ready to drive growth to achieve its 2024 revenue target of 150 billion baht, with an investment budget of 15 billion baht. This growth will be fueled by strategies to expand the business in high-potential sectors including medical supplies and labware, global foodservice packaging, and bio-solutions, which is a megatrend.

The company is committed to developing continuously innovation and solutions to enhance business capabilities, proactively manage costs, and elevate operational excellence through the use of technology. Moreover, ESG initiatives are in progress with the continual increase in alternative energy sources which helps move SCGP towards achieving its goal of net zero by 2050.

SCGP announced its operating results for 2023, reporting a revenue from sales of 129.39 billion and a profit for the year of 5.24 billion baht. This achievement was attributed to the enhanced cost management efficiency and the strengthening network of recovered paper sources.

Mr Wichan disclosed the company's operating results for 2023, the revenue from sales amounted to 129.39 billion baht, a decrease of 11% year-on-year. The profit was 5.24 billion baht, down by 10% year-on-year.

Sales of consumer packaging remained strong while price competition intensified in overall packaging paper industry over the past year amid high inflation and interest rates which impacted consumer purchasing power.

Nonetheless, selling prices of packaging paper and pulp in the region have already passed the bottom point and are trending upward, driven by recovering demand in ASEAN and China.