SCG Packaging (SCGP) Q2 2025 earnings summary

Executive summary

• H1 2025 sales revenue was THB 63.77 billion, down 6% YoY, mainly due to lower selling prices in Integrated Packaging and Fibrous Businesses, consistent with regional trends.

• EBITDA for H1 2025 was THB 8.49 billion, down 13% YoY but up 34% HoH, with margin improving to 13%.

• Net profit for H1 2025 was THB 1.91 billion, down 40% YoY but up 267% HoH, with a profit margin of 3%.

• Q2 2025 revenue was THB 31.56 billion, down 8% YoY and 2% QoQ, with EBITDA at THB 4.26 billion, down 8% YoY but up 1% QoQ; net profit was THB 1.01 billion, down 30% YoY but up 12% QoQ.

• Focus remains on cash generation, customer centricity, and expanding consumer-linked segments amid geopolitical and tariff uncertainties.

Financial highlights

• Gross profit margin for H1 2025 was 18.1% (vs. 19.0% in H1 2024); EBITDA margin was 13.3% (vs. 14.4%); net profit margin was 3.0% (vs. 4.7%).

• Return on equity dropped to 3.1% from 7.3% YoY; return on assets for H1 2025 was 1.4%.

• Net debt to EBITDA at 3.7x as of H1 2025, expected to fall to 3.3x by year-end.

• Interim dividend of THB 0.25 per share (1,073 MB) approved for H1 2025, payable in August.

• H1 2025 CAPEX spending was THB 6.06 billion, with a full-year budget of THB 10 billion.

Outlook and guidance

• H2 2025 global economic growth expected to remain slow due to US tariffs and geopolitical tensions, but ASEAN demand is projected to be resilient, especially in food, beverages, and consumer products.

• Focus on expanding consumer-linked portfolio to 50% by 2030 and increasing ASEAN revenue share.

• Raw material and freight costs may trend slightly upward, while energy costs are expected to remain stable.

• Strategic shift toward export diversification and cost optimization to mitigate tariff and political risks.

• Advancing ESG targets, including 25% GHG reduction by 2030 and Net Zero by 2050.