SCGP Earnings Fall 22% to THB1,600 Million in 1Q22, on Rising Raw Material Prices

SCG Packaging Public Company Limited (SET: SCGP) has announced its 1Q22 consolidated financial statement through the Stock Exchange of Thailand as follows;

Quarter 1Q22 1Q21
Net Profit (Loss)
Million Baht
1,657.96 2,134.73
Earning Per Share
0.39 0.50
% Change -22

In 1Q22, SCGP reported profit for the period of THB1,658 million (-22% YoY and -22%QoQ) with net profit margin of 5%. The YoY decrease in performance was due mainly to global broad based increase in raw materials and energy costs. Yet, SCGP has proactively and effectively managed cost throughout the supply chain while product price adjustments were made to reflect the rise in costs. Meanwhile, QoQ drop in profit was due to non-recurring adjustment in Q4/2021 related to Go-Pak’s earn-out provision.

Revenue from sales for the period increased to THB36,634 million (+34% YoY and +4% QoQ) owing to (1) The consolidation of M&Psin Duy Tan, Intan Group, and Deltalab (2) Revenue growth in the integrated packaging business which mainly came from customer segments of consumer products, exports of ready meals, frozen food and pet food (3) Surge of demands and pulp price amid concern on global supply chain disruption.

Meanwhile, total cost of sales was THB30,346 million, an increase of +43% YoY as a result of the (1) consolidation of new M&P companies along with organic expansions (2) heightened freight and energy costs (3) limited supply of recycled paper during the height of the COVID-19 pandemic in many countries, leading to surge in raw material prices.