SCG Packaging (SCGP) today announced robust financial results for the second quarter of 2025, reporting 31,557 million Baht in sales revenue, 4,257 million Baht in EBITDA, and a profit of 1,010 million Baht. This strong performance was primarily fueled by SCGP’s strategic emphasis on ASEAN domestic markets, supported by increased local consumption, efficient recovered paper management, and the integration of AI and advanced technology to boost cost efficiency and bolster sustainability. The company’s Board has also approved an interim dividend payment of 0.25 Baht per share.
ASEAN Growth Engine & AI-Powered Operations
Wichan Jitpukdee, CEO of SCGP, highlighted that the ASEAN packaging sector in Q2 2025 significantly benefited from rising domestic consumption, government stimulus initiatives, and accelerated exports to the U.S. in anticipation of upcoming tariff adjustments, particularly for the expanding consumer goods and food & beverage segments.
SCGP’s proactive marketing strategy, centered on delivering tailored packaging solutions, resulted in consistent sales volume growth for its integrated packaging business, especially in Vietnam, despite stable pricing. While pulp and paper sales experienced a slight dip due to a slowdown in the textile industry, the company effectively managed costs through the application of AI and Machine Learning across its entire value chain. These efforts, particularly in Indonesian operations for energy optimization and increased domestic recovered paper (RCP) utilization, helped bring Indonesian EBITDA to break-even and positively impacted SCGP’s overall performance.
Strategic Outlook: H2 Expansion & Tariff Resilience
Looking ahead, Wichan anticipates continued growth in ASEAN’s domestic packaging demand for the second half of 2025, driven by economic stimulus and higher projected GDP growth rates in countries like Vietnam, Indonesia, and the Philippines, along with year-end inventory restocking. While RCP and logistics costs may see slight increases, SCGP is closely monitoring the potential impact of reciprocal tariff measures.
SCGP is actively pursuing expansion in high-potential segments. The company recently increased its stake in Duy Tan Plastics Manufacturing Corporation (Duy Tan) in Vietnam. This investment aims to expand SCGP’s integrated solutions and product diversity, serving the growing needs of the ASEAN consumer market and enhancing long-term profitability and competitiveness.
Regarding reciprocal tariffs, with U.S. revenue representing approximately 4% of total revenue from consumer product exports, SCGP faces limited direct impact. Nevertheless, the company is proactively increasing domestic packaging sales in ASEAN and expanding exports to new promising markets such as India, Bangladesh, and Australia. SCGP leverages its flexible value chain, diverse production bases across ASEAN, and comprehensive portfolio of integrated packaging solutions to optimize production, manage raw materials, and engage in joint planning and contract manufacturing for competitive costs in each market.
Driving Sustainability & Operational Excellence
SCGP is systematically advancing its technology and AI platforms to enhance efficiency across its value chain, reduce costs, and strengthen long-term sustainability. This includes implementing robotic automation to minimize errors and improve safety in production. The real-time application of AI in production processes and cross-plant allocation enhances operational flexibility and reduces lead times. These technological advancements contributed a combined 120 million Baht in cost reduction and business value creation during the first half of 2025.
The company is also deeply committed to ESG (Environmental, Social, and Governance) principles and the Circular Economy, aligning with international sustainability guidelines. SCGP earned the EcoVadis Platinum Medal for the second consecutive year. Furthermore, over 169 products and 16 processes (representing 50% of its target for Q4/2025) have already received Carbon Footprint certification.
The Board of Directors approved an interim dividend payment of 0.25 Baht per share from the first-half 2025 operating results, totaling 1,073 million Baht. The XD (ex-dividend) date is set for August 8, 2025, the record date for determining eligible shareholders is August 13, 2025, and the dividend payment is scheduled for August 27, 2025.
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