SCG Packaging (SCGP) Q4 2024 earnings summary

Executive summary

• Revenue for FY2024 grew 3% year-on-year to THB 132.784 billion, driven by higher domestic sales in integrated and fiber business chains, especially in downstream segments like polymer, fiber, and foodservice packaging.

• EBITDA declined 9% year-on-year to THB 16.127 billion, with margin at 12%, due to increased recycled paper costs and lower product prices.

• Net profit for 2024 was THB 3.699 billion, down 30% year-on-year, with a profit margin of 3%, impacted by higher finance costs and currency appreciation.

• Domestic market share and volumes grew, offsetting reduced exports, especially to China.

• Sales volume increased 2% year-on-year, with resilient consumer packaging margins and cost savings from energy and raw material optimization.

Financial highlights

• Integrated business chain revenue rose 3% year-on-year to nearly THB 100 billion; EBITDA fell 8% to THB 13.26 billion, margin at 13%.

• Fiber business revenue grew 2% to THB 25 billion; EBITDA dropped 4% to THB 3.666 billion, margin at 14%.

• Q4 2024 sales revenue was THB 31.231 billion, down year-on-year and quarter-on-quarter, mainly due to price declines and lower fibrous business sales.

• Q4 EBITDA was THB 2.845 billion, with a net loss of THB 57 million, impacted by non-recurring items and higher costs.

• FY2024 core EBITDA was THB 16.337 billion and core profit was THB 3.876 billion.

Outlook and guidance

• 2025 EBITDA targeted at THB 18 billion, with growth CapEx over THB 8 billion and cost savings of THB 600 million expected from energy efficiency and AI initiatives.

• Dividend of THB 0.55 per share approved, yielding 3.3%.

• Positive momentum expected in ASEAN domestic markets; Q4 2024 seen as the trough, with improvement anticipated in Q1 2025.

• Alternative fuel usage expected to reach 39% of total energy consumption.

• Continued volatility anticipated from macroeconomic factors, foreign exchange, and RCP costs.