SCGP predicts a misfire on its revenue target

SCG Packaging Plc (SCGP), a Thai operator in the fully-integrated packaging chain in Southeast Asia, expects to miss its revenue target of 150 billion baht this year because of the impact of global economic uncertainties and baht appreciation.
The stronger baht, which affects Thai exports, and the economic slowdown in China led to unpleasant revenue prospects in 2024.
“These factors are causing us to downgrade our revenue projection,” said Wichan Jitpukdee, chief executive of SCGP.
Other international economic challenges include the impact of geopolitical conflicts, the US-China trade war and the US presidential election.
From January to September, SCGP spent 27 billion baht supporting its investment projects. The company expects investment budget spending to reach 30 billion baht by the end of this year.
In 2025, the company plans to allocate 13 billion baht to invest in high-growth-potential businesses and to support projects, including the improvement of production efficiency and maintenance management.
“We plan to spend 8 billion baht of this amount investing in the packaging business through mergers and partnerships. We are in talks with a packaging company,” said Mr Wichan.
In the first nine months of this year, SCGP posted a revenue increase of 4% year-on-year to 102 billion baht, attributed to higher sales in integrated packaging and fibrous business chains. Profit during this period declined by 7% year-on-year to 3.75 billion baht, attributed to higher operating costs.
Despite the global economic uncertainties, he said he believes the packaging industry will improve in the fourth quarter this year, driven by a projected rise in people’s spending on consumer goods.
The company expects to see a rebound in the service and tourism sectors, with higher demand for durable goods in preparation for the festive season later this year.
SCGP continues to invest in expanding its consumer packaging solutions business, focusing on high-growth segments such as food service packaging, medical supplies and labware.
The company recently collaborated with Once Medical Company Ltd to develop syringes and other high-quality medical supplies and labware.
“We expect revenue from the medical sector to increase to 10 billion baht by 2030, up from 3 billion at present,” said Mr Wichan.