SCGP’s 2022 Earnings Drop 30% to THB5,801 Million, Offering THB0.35 Dividend Payout

SCG Packaging Public Company Limited (SET: SCGP) has announced its 2022 consolidated financial statement through the Stock Exchange of Thailand as follows;

Year 2022 2021
Net Profit (Loss)
Million Baht
5,801 8,294
Earning Per Share
1.35 1.93
% Change -30

For the 2022 performance, SCGP had a net profit of THB5,801 million, decreased by 30% YoY, with net profit margin of 4% amid heightened energy cost and contraction of packaging paper sales volume in the midst of weakened global and regional demand (Net profit in Q4/2021 included the adjustment of Go-pak’s earn-out provision).

Total revenue from sales recorded at THB146,068 million, increased 18% YoY, supported by business growth through both organic expansion and Merger & Partnership (M&P) including the commercial start-up of packaging paper plant in the Philippines (UPPC 3), full year financial consolidation of completed M&P in rigid packaging manufacturer (Duy Tan), corrugated carton producer (Intan Group), medical supplies and labware specialist (Deltalab) and partial consolidation of international packaging material recycling business (Peute and Jordan) as well as product prices adjustment to align with the rise in costs. 

EBITDA reported at THB19,402 million, decreased by 8% YoY, with EBITDA margin 13%. 

For the Q4/2022 performance, total revenue from sales registered at THB33,509 million, decreased by 5% YoY, mainly due to the decline in sales volume from soft demand both in domestic and export markets, especially in packaging paper business while polymer and fiber packaging business were more resilient. Meanwhile, fibrous business was supported by YoY improvement of product prices in all categories and the increased food services packaging sales from additional capacity. 

EBITDA was recorded at THB3,554 million, decreased 34% YoY, with EBITDA margin at 11%. 

Profit for the period reported at THB450 million, decreased 79% YoY. The declining YoY profitability was mainly attributed to the decrease in sales volume and price of packaging paper, particularly in Indonesia, including the impact of the adjustment related to M&P’s earn-out provision in Q4/2021. On a QoQ basis, revenue from sales and EBITDA decreased by 12% and 35% respectively. Profit for the period also shrank to 76%.

In addition, SCGP announced a THB0.35 dividend payout on 24 April 2023. The ex-dividend date is on 4 April 2023.