Strengthened Earnings in Q2 of 2025 by SCGD, Demonstrating the Highest Profitability in the Last 5 Consecutive Quarters
SCG Decor (SCGD), a leading player in the ASEAN region, has announced its enhanced competitive position in the Vietnamese ceramics market. The company is expanding its product portfolio, focusing on High-Value-Added (HVA) products and quality sourcing products at competitive prices and costs.
Expanding Production Capacity and Cost Competitiveness
SCG's strategy in the Vietnamese ceramics market revolves around expanding production capacity, cost competitiveness, and product mix innovation. The company has significantly increased its glazed porcelain tile production capacity in Vietnam to meet growing demand while reducing production costs to compete with global players.
This expansion leverages Vietnam as both a domestic consumption base with strong growth potential and a strategic export platform. The strategic location benefits from favourable U.S. import tariffs and competitive regional costs.
Focus on High-Value-Added Products and Cost Reduction
SCG is enhancing its global market competitiveness by accelerating the production and procurement of HVA and New Growth products. The company operates the PRIME business in Vietnam, which increases cost competitiveness against world-class players.
SCGD is focusing on cost reduction through business restructuring and continuous working capital reduction. The company is reducing costs through energy cost reduction projects, such as increasing usage of solar energy and heat energy from biomass, and administrative expense reduction through continuous lowering of working capital by controlling inventory and managing trade receivables.
Operational Excellence through Technology and Cost Control
SCGD is also driving cost reductions through energy-saving initiatives, applying AI and robotics for manufacturing efficiency, and working capital management. These strategies aim at enhancing competitiveness in the global market.
The company's focus on cost reduction and administrative expense is reflected in its operating results. In Q2 2025, SCG achieved EBITDA on sales of 15.2% and a net profit margin of 4.8%.
Business Restructuring and Dividend Payments
The company's business restructuring supports margin expansion, with EBITDA margins improving to 15.2% in Q2 2025, and gross profit margins rising to 28.3%. The Board of Directors approved an interim dividend payment from first-half operating results at 0.15 baht per share, with the payment scheduled for August 27, XD date set for August 8, 2025, and record date for dividend eligibility on August 13, 2025.
Growth in Sales Volume and New Partnerships
Tile sales volume in Q2 increased to 31.7 million square meters, benefiting from regional market recovery, particularly in Vietnam. SCGD is preparing to capitalise on opportunities from the recovery of Vietnam's real estate market.
The company's sanitary ware business expanded internationally, reaching 177 distributors and generating regional sanitary ware sales of 244 million baht in the first half of 2025. SCG also signed a Memorandum of Understanding (MOU) with AXENT Switzerland to explore opportunities for comprehensive growth in the smart sanitary ware market across Southeast Asia.
Financial Strength and Future Plans
With total assets of 38,787 million baht, SCG maintains financial strength with long-term growth capability. The company is increasing its glazed porcelain tile production capacity to 25% of total production capacity in 2025, with Vietnam becoming a production and export base to strengthen global market competitiveness.
SCGD is also using AI and digital technology to improve efficiency, achieving total cost reduction of over 140 million baht per year through Business Restructuring. The company's focus on innovation and operational excellence positions it well for continued growth and success in the Vietnamese ceramics market.
- SCG Decor (SCGD) is expanding its product portfolio to include High-Value-Added (HVA) products and quality sourcing products at competitive prices and costs, as part of its strategy in the Vietnamese ceramics market.
- To enhance its global market competitiveness, SCG is increasing production and procurement of HVA and New Growth products, and reducing costs through business restructuring, energy cost reduction projects, and administrative expense reduction.
- Leveraging Vietnam as a strategic export platform, SCG is focusing on cost reduction through efficiencies gained from AI, robotics, and working capital management, aiming at global market competitiveness.
- SCGD achieved EBITDA on sales of 15.2% and a net profit margin of 4.8% in Q2 2025, and its business restructuring efforts have led to improved EBITDA and gross profit margins.
- In the first half of 2025, SCGD's sanitary ware business expanded internationally and signed an MOU with AXENT Switzerland to explore growth opportunities in the smart sanitary ware market across Southeast Asia.
