SCG Decor Public Company Limited (SCGD) has announced standout operating results for the third quarter of 2025, posting a net profit of 305 million Baht. This marks a significant 37% increase compared to the previous quarter and a 61% surge from the same period last year. The performance represents the company’s best results since its listing on the Stock Exchange of Thailand.
This robust growth comes amid a challenging macroeconomic environment and intense market competition. SCGD attributes its success to an intensive “4×4 strategy,” focusing on positioning Vietnam as its primary regional production and export hub for the growing ASEAN market. This is coupled with a sharp focus on enhancing production efficiency, rigorous cost management, and expanding its high-value-added (HVA) product portfolio in Thailand.
Stellar Financials Amid Market Headwinds
Mr. Numpol Malichai, CEO and President of SCGD, detailed the strong quarterly performance. The company’s EBITDA reached 902 million Baht, an improvement of 12% from the previous quarter and 18% year-on-year. This performance translates to a healthy EBITDA on sales margin of 16% and a net profit margin of 5.3%.
For the first nine months (9M) of 2025, SCGD achieved an EBITDA of 2,513 million Baht and a net profit of 744 million Baht.
Mr. Malichai emphasized that even when excluding non-recurring items, the company maintained its best profitability. This resilience is credited to “intensive strategic execution and continuous efficiency improvement initiatives” , which have allowed SCGD to maintain strong competitiveness despite the difficult market conditions for decorative surfaces and construction materials.
The “4×4 Strategy”: Vietnam as the ASEAN Engine
SCGD’s confidence in its long-term competitiveness rests on its 4×4 strategy, with the Vietnam operation, PRIME, at its core.
- 1. Elevating PRIME Vietnam as the Regional Hub: The company is managing production costs at PRIME to compete with world-class players. This cost advantage is being leveraged to expand export markets aggressively. In Q3 alone, PRIME’s tile exports totaled 2.2 million square meters, a 47% jump from the same period last year.
- 2. Expanding Glazed Porcelain Tile Capacity: To meet rising demand, SCGD expanded glazed porcelain tile production capacity at PRIME. This segment is thriving due to consumer preferences for beautiful, durable, and easy-to-maintain materials, combined with globally competitive production costs. Q3 sales of these tiles from PRIME exceeded 3.6 million square meters.
- 3. Accelerating New Growth in Thailand: The company is expanding its complementary product and New Growth business portfolio in Thailand. This segment showed remarkable traction, growing 50% in Q3 compared to the same period last year.
- 4. Penetrating Markets with HVA Products: High Value-Added (HVA) products are a key pillar, accounting for over 41% of total sales revenue. These products target modern consumer lifestyles, including the health-conscious and environmentally aware younger generations seeking quality, design, and function.
Innovation and New Ventures Driving Margins
The company’s HVA portfolio demonstrates a clear focus on innovation:
- Decorative Surfaces: Products include Hygienic tiles and ‘Flowel Pure TECH by COTTO’. The latter is an innovative wall surface material from Japan that absorbs harmful volatile substances (VOCs), balances humidity, and absorbs unpleasant odors.
- Sanitary Ware: This includes the ‘DUACT-TAP & GO’ automatic toilet, which serves all family members, saves water (using only 4.5 liters per flush), and runs on batteries. The ‘Xquisia’ faucet from COTTO, which has won international design awards, also highlights the push for luxury and modern function.
- Eco-Friendly Solutions: SCGD is developing eco-friendly sanitary ware using natural coating materials from eggshells and shells to reduce greenhouse gas emissions. It also offers tiles that reduce CO2 emissions during production.
- Mass Market: Alongside its premium offerings, the company maintains a strong footing in the mid- to mass-market segments with good quality, affordable products.
This growth strategy is further detailed by Mr. Sitichai Sukkitprasert, Chief Finance Officer of SCGD. During the first nine months of 2025:
- SPC (Stone Plastic Composite): After shifting to local production from imports, the company gained significant cost advantages. 9M sales volume hit 876,000 square meters, a 47% increase year-on-year.
- International Sanitary Ware: The business expanded to 181 distributors, generating 372 million Baht in overseas sales.
- Complementary ASEAN Business: This segment realized 312 million Baht, up 17% year-on-year.
Operational Excellence and Cost Mastery
A second set of four strategies focuses on enhancing profitability through aggressive cost management.
- Energy Cost Reduction: The company increased its use of biomass fuel to 23.5% and solar power to 13.6% (adding 5.5 megawatts from Q2). These moves are set to reduce annual costs by 15 million Baht and 22 million Baht, respectively.
- Raw Material & Optimization: SCGD successfully negotiated raw material cost reductions of over 21 million Baht. A prime example of its regional optimization strategy is exporting tiles from PRIME (Vietnam) to the Philippines, which saves 25% in costs compared to producing those tiles in the Philippines.
- Capital and Financial Efficiency: The company reduced administrative costs by managing working capital (controlling inventory and receivables), saving 29 million Baht annually. It also reduced financial costs by 33 million Baht annually through refinancing and partial debt repayment.
A Strong Balance Sheet for Future Growth
SCGD’s strategic execution is underpinned by a robust financial position. The company holds total assets of 37,064 million Baht.
Crucially for investors, the company’s financial strength is improving. The net debt to EBITDA ratio stands at 1.3 times, which is a reduction from the previous quarter. Furthermore, the net debt to equity ratio is a very low 0.2 times.
This strong balance sheet positions the company for long-term growth while allowing it to maintain prudent capital management and align spending with future expansion plans.
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