SCG announced robust earnings for the first half of 2025, demonstrating a significant turnaround driven by aggressive cost reduction, strategic restructuring, and a product portfolio pivot, even as revenue saw a slight dip amid a challenging global economy.
Thamasak Sethaudom, President and CEO of SCG, revealed that the company is now preparing to navigate the trade headwinds expected in the second half of the year by leveraging its ASEAN production base and expanding its new “Smart Value” product line.
Performance Highlights: Profit Soars Despite Weaker Revenue
For the first half of 2025, SCG posted revenue of THB 249 billion, a slight decrease year-on-year reflecting general economic conditions. However, the profit story was markedly different.
The company reported a net profit of THB 8.436 billion.
This figure, however, was significantly boosted by a one-time, non-cash gain from restructuring activities. A truer measure of the company’s underlying health, its profit from core operations, stood at THB 33 billion, a substantial improvement from the second half of the previous year.
Thamasak emphasized that the most critical performance indicators are EBITDA and cash flow. SCG’s EBITDA reached THB 33.32 billion, a remarkable 21% increase compared to H2 2024. This growth was fueled by effective cost management in the Cement division, AI-driven efficiencies in Packaging, and improved margins in Chemicals. The company maintains a strong cash position, with THB 45.54 billion in cash on hand at the end of Q2.
“These figures represent a clear turnaround and are the tangible results of the restructuring and problem-solving efforts we have pushed since last year,” said Thamasak.
The Three Pillars of Success
The strong performance was attributed to three core strategies:
- Aggressive Cost Reduction: To combat intense competition from lower-cost imports in the region, SCG executed a massive cost-saving initiative, resulting in over THB 2.8 billion in savings across its main business units. This was achieved through methods like using alternative fuels in the Cement business (saving THB 1 billion) and comprehensive optimization in the Chemicals business (saving over THB 1.5 billion in raw material and efficiency costs).
- Strategic Restructuring: SCG decisively exited non-performing assets, including a plastics recycling business in Kosovo and a divestment in Indonesia. While incurring one-time costs, this move generated recurring operational savings of THB 900 million per quarter.
The restructuring also led to a significant non-cash gain of THB 16.71 billion from the revaluation of its investment in PT Chandra Asri Pacific Tbk. (CAP) in Indonesia.
- The “Smart Value” Product Pivot: SCG is strategically shifting its product philosophy. While continuing to focus on High-Value Added (HVA) products, the company is aggressively launching its new “Smart Value” line. Likened by the CEO to an “iPhone SE,” this strategy aims to offer products with trusted SCG quality at competitive price points, specifically designed to meet the needs of different market segments and effectively compete with imports.
Fortified Financial Position and Shareholder Returns
SCG’s disciplined financial management continues to yield strong results. In Q2 alone, the company reduced its net debt by THB 8.36 billion and working capital by THB 7.16 billion. This contributes to a cumulative net debt reduction of nearly THB 30 billion since the initiative began.
This strong financial standing allowed the Board of Directors to confidently approve an interim dividend of THB 2.50 per share.
A Vision for the Future: Net Zero as a License to Operate Globally
Looking beyond immediate challenges, Mr. Thamasak linked the company’s strategy to the shifting landscape of global trade. He stressed that future competitiveness, especially for access to markets like the European Union, will depend on meeting stringent environmental standards, citing the EU’s Carbon Border Adjustment Mechanism (CBAM) as a critical upcoming challenge.
“If Thai industries are not prepared for these carbon regulations, free trade could become a detriment rather than a benefit,” he warned.
In response, SCG is leading a national-level discussion, hosting a closed-door working group on August 1, 2025, to brainstorm actionable solutions for Thailand’s green transition. The summit convenes global thought leaders, including the President and CEO of Toyota Global, representatives from the UN, a chief scientist from MIT, and the Governor of the Bank of Thailand.
This initiative underscores SCG’s vision of sustainability not merely as a corporate policy, but as an essential “license to operate” and compete in the new era of global commerce.
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