SCG Packaging Public Company Limited (SET: SCGP) has reported a significant growth in its second-quarter results for 2026, with net profit surging 128% year-over-year to THB 2,304 million. Revenue from sales reached THB 32,454 million, representing a 3% increase over the same period last year and a sharp 11% sequential jump from the first quarter. The results signal a firmer recovery across domestic and export markets following a temporary slowdown in demand earlier in the year.
Key Financial Highlights:
- Revenue from Sales: THB 32,454 million (+3% YoY, +11% QoQ)
- Net Profit: THB 2,304 million (+128% YoY, +47% QoQ)
- Earnings Per Share (EPS): THB 0.54
- EBITDA Margin: 18% (up from 13% in 2Q25)
- Interim Dividend: THB 0.40 per share
The Integrated Packaging Business (IPB) was the quarter’s star performer, with revenue growing 6% YoY to THB 25,387 million. This unit saw its EBITDA jump 36% YoY, driven by a successful turnaround in Indonesian packaging paper operations and robust growth in Vietnam. EBITDA margins for the segment expanded to 20%, up from 16% a year ago.
The Fibrous Business (FB) also showed resilience, with revenue up 3% YoY to THB 6,548 million. The segment’s profitability was bolstered by higher market pulp prices and a favorable foreign exchange impact from the depreciation of the Thai Baht. Conversely, the Recycling Business was a relative laggard, with revenue dipping 1% YoY to THB 2,073 million.
The quality of these earnings is highlighted by a core profit of THB 2,335 million, which slightly exceeded the reported net profit after adjusting for non-recurring asset impairments and net realizable value adjustments. This growth was achieved despite surging raw material, energy, and freight costs linked to Middle East geopolitical tensions. Management offset these pressures through operational excellence initiatives, including AI-driven energy procurement and a 36% shift toward alternative fuels.
SCGP’s balance sheet continues to strengthen, with its net debt to EBITDA ratio dropping to 2.6 times from 3.7 times a year earlier. Total assets grew 3% to THB 181,007 million, supported by a healthy cash position and short-term investments.
Looking ahead, management is doubling down on ASEAN growth. The company announced a THB 748 million investment to expand fiber packaging capacity in southern Vietnam, targeting a market growing at 7% annually. SCGP expects demand to normalize in the third quarter as government stimulus measures and year-end inventory restocking take hold.
