Strong Q2/2025 Results for SCGD Show Maximum Profitability in Past Five financial Quarters
SCG Strengthens Global Competitiveness through Vietnam Expansion and Cost Efficiency Measures
Siam Cement Group (SCG) is focusing on cost reduction and enhancing competitiveness through business restructuring and continuous working capital reduction. The company's strategies for expanding in Vietnam and improving competitiveness by 2025 involve establishing Vietnam as a primary production and export base, leveraging competitive cost advantages, and favourable trade conditions.
Vietnam, with its competitive production costs, particularly in glazed porcelain tile manufacture, is set to become a key player in SCG's production and export strategy. The tile production capacity is planned to reach 25% of total SCG production in 2025. SCG has also increased its equity in Duy Tan Plastics Manufacturing Corporation in Vietnam to enhance its consumer packaging business and overall presence in the ASEAN market.
SCG is also expanding its product portfolio, with a focus on High-Value-Added (HVA) products. The company aims to increase sales shares of HVA products, currently over 37%, and expand complementary business product portfolios to address diverse customer needs. New high-potential markets such as Africa, Oceania, and North America are being targeted for export growth.
To boost productivity and reduce costs, SCG is applying AI technology in product design, quality inspection, process simulation, and warehouse management. Energy-saving projects, such as solar and biomass energy use, are also being implemented, reducing energy costs by over 36 million baht annually. Business restructuring through AI and digital solutions is leading to cost reductions exceeding 140 million baht per year.
SCG is also collaborating with global and local partners through sustainability programs like the Net Zero Accelerator Program and ESG symposiums to drive green transition and enhance competitiveness. The company has signed a Memorandum of Understanding (MOU) with AXENT Switzerland to explore opportunities for comprehensive growth in the smart sanitary ware market across Southeast Asia.
The company's efforts are paying off. SCG achieved EBITDA on sales of 15.2% and a net profit margin of 4.8%, the highest in 5 quarters since Q2 2024. Tile sales volume in Q2 increased to 31.7 million square meters, benefiting from regional market recovery, particularly in Vietnam. The company reported stronger Q2/2025 operating results with EBITDA of 879 million Baht, up 5% from the previous quarter, and profit of 283 million Baht, up 19% from the previous quarter.
To take care of shareholders during global and Thai economic volatility, SCG increased dividend payments to 0.15 baht. The interim dividend payment is scheduled for August 27, with an XD date set for August 8, 2025, and a record date for dividend eligibility on August 13, 2025.
Mr. Numpol Malichai is the Chief Executive Officer and President of SCG Decor Public Company Limited (SCGD). Under his leadership, SCGD operates the PRIME business in Vietnam, which increases cost competitiveness against world-class players.
In conclusion, SCG's strategy in Vietnam is to leverage cost advantages, green technologies, and AI-driven efficiencies to strengthen its global competitiveness by 2025, while expanding its product portfolio and market reach.
- SCG's business restructuring in Vietnam, aided by AI technology, aims to lower costs and boost competitiveness within the international industry, particularly in real estate and finance sectors.
- To expand its consumer packaging business and boost its presence in the ASEAN market, SCG has increased its equity in a Vietnamese corporation.
- SCG's focus on High-Value-Added products includes targeting new markets such as Africa, Oceania, and North America for export growth, while collaborating with global partners to drive green transition and enhance competitiveness.
