SCG Packaging Plc (SCGP), a Thai operator in the fully-integrated packaging chain in Southeast Asia, maintains its revenue target is projected to increase by 15% year-on-year to 150 billion baht in 2024, driven by growing demand for packaging products in Vietnam.
"The influx of inexpensive products from China into Asean countries, including Thailand, poses a challenge to our business. However, we remain confident in our ability to compete with these low-cost items because SCGP offers innovative products with high added value," said Wichan Jitpukdee, chief executive of SCGP.
The company is proceeding with its plan to allocate an investment budget of 10 billion baht, which includes mergers and partnerships (M&P) in sectors with high growth potential.
SCGP is in discussions with companies for 2-3 M&P deals and anticipates finalising them within this year. Included is a deal in the healthcare and medical sector, said Mr Wichan.
SCGP is monitoring closely the impact of geopolitical conflicts, including the Israel-Hamas conflict and Red Sea tensions, as they could affect the company's business and the economy.
Mr Wichan anticipates improved business prospects for the latter half of this year, primarily due to favourable market conditions in Vietnam and Indonesia, which are likely to increase demand for SCGP's products, particularly in the food and beverage sector.
The company also expects to see growing demand for its products in the healthcare and medical sector.
SCGP reported its operating results for the first half of 2024, achieving a total sales revenue of 68.1 billion baht, which represents a 3% increase from the same period in 2023.
In the second quarter alone, sales revenue reached 34.2 billion baht, representing a 6% growth year-on-year. This increase was attributed to higher sales volumes in both the integrated packaging and fibrous segments, coupled with ongoing raw material and energy cost management.
SCGP is developing sustainable packaging to obtain carbon footprint certification, aiming to collaborate with customers in reducing greenhouse gas emissions across the entire supply chain.
