SET‑listed SCG Ceramics, a subsidiary of SCG Cement-Building Materials, plans to maintain its product prices despite a 10% increase in energy costs and concern over inflation affecting consumer purchasing power.
SCG Ceramics does not plan to adjust prices and is using other measures to control costs, said managing director Nampol Malichai.
"We carefully managed operation costs, increased production efficiency and developed more innovative products, so it's not necessary to increase prices at a time people are facing higher living costs," he said.
The firm is positive about economic recovery, though it is improving at a slow pace, believing the situation will be better than two years ago.
The Thai ceramics industry is also showing signs of a slow recovery as the government has not reinstated harsh lockdown measures and is implementing stimulus packages.
The home renovation market continues to grow due to demand for ceramics from homeowners and housing developers, especially in the provinces, said the firm, a manufacturer and distributor of ceramic wall and floor tiles.
The local ceramics market is valued at around 30 billion baht a year, with products calculated in terms of areas spanning 165-170 million square metres in total.
SCG Ceramics expects its revenue to grow by 5% this year, up from 11.19 billion baht last year from domestic sales and exports to Cambodia, Laos and Myanmar.
Its profit in the fourth quarter of last year plunged by 31% year-on-year because of higher energy costs, especially natural gas.
The firm is working to increase its export to Asean markets, notably Cambodia, Laos and Myanmar, which are poised to grow as their governments did not resort to lockdown measures to contain the spread of Covid-19.
"The company sees growing demand in Myanmar as the pandemic and political conflicts are expected to calm down, but the situations still need to be closely monitored," said Mr Nampol.
SCG Ceramics is also the operator of Nong Khae Industrial Estate in Saraburi, which helped drive revenue last year. It also launched a solar energy business in 2021.