SCGP Jumps 6% after 1Q24 Earnings Beat Expectations

The share price of SCG Packaging Public Company Limited (SET: SET SCGP) rose 6% in the afternoon session after earnings in 1Q24 beat market expectations.

Year 1Q24 1Q23
Net Profit (Loss)
Million Baht
1,724.65 1,220.49
Earning Per Share
0.4000 0.2800
% Change 41.31

SCGP reported a net profit of 1,725 million baht (+41% YoY and +42% QoQ) with a net profit margin of 5%. The reported net profit was higher than 1,491 million baht of net profit expected by the market, according to the consensus from LSEG.

The company stated that the YoY profitability improved from higher sales volume and production utilization across all major product categories, coupled with effective cost management throughout the entire value chain.

Meanwhile, QoQ profitability increased was driven by higher packaging paper sales volume and selling price in strategic markets, rise in global pulp price, and flexibility and resiliency in raw materials sourcing network despite the upward trend of global recovered paper (RCP).

In Q1/2024, SCGP’s Core EBITDA was at 5,129 million baht (+16% YoY and +17% QoQ), and Core Profit was 1,686 million baht (+43% YoY and +39% QoQ). The above adjustment shows key non-operating items that affected SCGP’s EBITDA and profit for the period. Key items for Q1/2024 came mainly from FX gain/loss from loan and investment.

The share price rose to THB34.00 per share after the opening of the afternoon session, surging as much as 6.25%. The target price from LSEG consensus is THB39.71 per share.