Mr. Vichan Jitbaktee Chief Executive Officer SCG PACKAGING PUBLIC COMPANY LTD Or SCGB The overall trend of the packaging industry in 2024 revealed a rebound, especially in the ASEAN region such as Thailand and Vietnam. Indonesia accounts for 40% of domestic revenue, including China, and 60% of foreign revenue, mainly concentrated in Indonesia.
There are positive factors from the policies to stimulate tourism and exports, which are expected to rebound. A decrease in inflation rates and policy interest rates will have a positive effect on the purchasing power of consumers. Meanwhile, energy prices and prices for recycled paper raw materials continue to rise. and potential changes in freight rates due to geopolitical conflicts in the Middle East.
Looking at the outlook for the 1st quarter of 2024, the demand seems to be clear. This will help small- and medium-sized enterprises (SMEs) have more spending power since inflation will slow. Also, the Chinese New Year celebration has started. This will increase the number of tourists. As a result, sales increased
However, there are still negative factors in terms of higher freight rates and shipping costs from the Red Sea situation, which is still tense and highly uncertain. Because the company also ships to Europe. But initially there will not be much impact. SCGB will mainly focus on ASEAN markets with high growth potential. This will not affect the margin much.
The company is targeting revenue of 150,000 million baht this year or 15% growth through expansion strategies in businesses with high growth potential. Medical device business etc Food packaging and packaging development Bio solutions It is a mega trend to continuously develop innovations and solutions to increase business capabilities. and cost management reduced by 1,000 million baht to increase energy efficiency and production costs through the use of biomass energy, analysis and technology. By leveraging technology to drive operational excellence. Including driving ESG to increase the rate of alternative energy use. and work toward a goal of net zero greenhouse gas emissions by 2050.
This year's investment budget is 15,000 million baht, which will be used to expand new businesses with high growth potential. Medical equipment, healthcare, food packaging business etc. and packaging development Bio-solutions It is a mega trend to continuously develop innovations and solutions to increase business capabilities. This year, investments in mergers and collaborations with partners (Merger & Partnership – M&P) are expected in about 1-2 projects. Since last year, M&P deals have been closed on 3 projects. Currently, the company has 17,000 million in cash. Each pod. This year there will be continuous cash flow. Also plans to issue bonds this year. There are maturing bonds and phased issued bonds.
At the same time, the company announced operating results for 2023, sales revenue of 129,398 million baht, 11 percent less than the previous year, EBITDA of 17,769 million baht, 8 percent less than the previous year and profit for the year 5,248 million baht, 100 percent less than the previous year, 10 percent, the EBITDA margin ratio increased to 14 percent from 13 percent last year, focusing on cost management and efficient product manufacturing. Consumer product packaging sales remain strong. Last year the overall picture of the packaging paper industry increased price competition. Factors such as inflation and interest rates affect the purchasing power of consumers.
At present, the price situation for packaging paper and pulp sales in the region has reached an all-time low. And buying demand in the ASEAN region and China is likely to increase from recovery.
The board of directors decided to propose to the general meeting of shareholders to approve the payment of dividend for 2023 at the rate of 0.55 baht per share. The company has already paid an interim dividend of 0.25 baht per share in August. 22. 2023 and April 3, 2024 The final dividend will be paid at the rate of 0.30 Baht per share on April 22, 2024 as per the list of the names of the persons entitled to receive the dividend. On April 2, 2024
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