SCG Decor Shows Strong Q1/2025 Performance, Deploys Four-Pronged Strategy with 2.5 Billion Baht Investment Plan
SCG Decor posted stronger Q1 2025 profits despite a 7% revenue decline, buoyed by cost management and a 2.5 billion baht investment plan to expand Vietnam operations and restructure Thai facilities.
SCG Decor reported strong first quarter 2025 results with robust performance despite facing volatile global market conditions. The company achieved 247 million baht in net profit attributable to shareholders, representing a 14% increase from the same period last year, while EBITDA reached 780 million baht.
Although sales revenue declined 7% year-over-year to 5.552 billion baht—or just 4% excluding currency exchange impacts—the company's profitability continued to grow due to effective energy cost management and limited exposure to the Middle East, which accounts for less than 1% of total exports. The company maintains a disciplined approach to cost control while investing in future growth.
SCG Decor is maintaining its 2.5 billion baht capital expenditure plan for 2025, with prioritization adjustments focused on improving efficiency in northern Vietnam while delaying greenfield projects in southern Vietnam. CEO Nampol stated, "We expect investment projects in Vietnam and Indonesia to continue growing, while operations in Thailand and the Philippines face pressure from high inflation. However, our superior energy cost management compared to competitors will be the decisive factor in maintaining profits and market share."
The company maintains a strong financial position with over 9 billion baht in cash reserves and a net debt-to-EBITDA ratio of 1.1 times, reflecting disciplined financial management alongside strategic investments in production capacity and product innovation for long-term growth.
Under its Regional Optimization business approach, the company is pursuing four core strategies to enhance competitiveness in both cost and innovation:
1. PRIME Platform Enhancement: Positioning Vietnam as a manufacturing hub for both domestic and export markets by adding 6.6 million square meters of glazed porcelain production capacity (660 million baht investment) at the PRIME Pho Yen facility. The project targets completion in 2026 with a goal of reaching 33.4 million square meters total capacity, representing 40% of overall production. In Q1, tile sales reached 11.8 million square meters with glazed porcelain sales at 3.9 million square meters, up 44%.
2. Thai Production Restructuring: Consolidating four production facilities in Thailand into two locations in Saraburi through major structural reorganization, with anticipated charges of approximately 679 million baht (mostly non-cash). This will improve production efficiency and reduce unit costs while enabling investment in new production lines for large-format tiles and high-value-added (HVA) products, with completion expected in Q3 2026 and a target production capacity of 44.5 million square meters annually.
3. HVA-Smart Value Product Development: Advancing high-value-added and smart value products across all segments to serve consumers at every level, with HVA products representing 36% of revenue and Smart Value products accounting for 18%.