Amidst economic volatility and challenging consumer purchasing power, SCG Decor Public Company Limited (SCGD) has demonstrated its resilience with steady performance growth in the first half of 2026, while launching a 2-year aggressive strategic plan to enhance its competitive edge across ASEAN.
First-Half 2026 Results Grow Against Economic Headwinds
SCGD’s performance in the second quarter and the first half of 2026 highlights its operational strength despite economic pressures. Excluding non-recurring expenses—primarily asset impairment and business restructuring costs from the Plant Consolidation project in Thailand—the company achieved revenue from sales of 5,370 million baht in Q2. It maintained a solid Adjusted EBITDA of 805 million baht and registered an Adjusted Profit attributable to owners of the parent of 268 million baht, demonstrating a clear capability to preserve profitability.
For the first half of 2026, SCGD generated cumulative total revenue of 10,922 million baht, with a total Adjusted EBITDA of 1,566 million baht and an Adjusted Profit attributable to owners of the parent of 500 million baht. The primary driver of this growth was expanding international revenue, particularly in Vietnam, combined with effective cost management to mitigate energy price volatility, alongside strict and prudent financial discipline to ensure liquidity and sustainable profitability.
Mr. Numpol Malichai, Chief Executive Officer and President of SCG Decor Public Company Limited, explained the drivers behind these results: “In Q2 and H1 2026, SCGD’s operating performance grew, excluding non-recurring expenses—which were mostly asset impairments and business restructuring expenses from the Thailand Plant Consolidation project. This growth was driven by expanding overseas revenue, particularly in Vietnam, proactive cost management to offset energy price fluctuations, and disciplined financial management that sustained profitability. Furthermore, the non-recurring expenses were mostly one-time, non-cash items.”
2-Year Strategic Roadmap Positions Vietnam as Regional Production and Export Hub
To achieve long-term growth, SCGD is advancing its 2-year aggressive strategic plan (2026–2027), positioning Vietnam as a “Growth Pillar” and a primary export production base through PRIME Vietnam. This initiative has already yielded significant success, evidenced by an 18% year-on-year increase in glazed porcelain tile sales volume and a surge in export volume of over 71% year-on-year.
Tile exports from the Vietnam production base to the Philippines experienced remarkable growth, reaching 0.76 million square meters—a 162% increase year-on-year. This aligns with the core strategy of distributing high-quality products to high-potential regional markets. The planned expansion of production capacity will strengthen the supply chain and enhance Vietnam’s readiness as a manufacturing hub to meet recovering global market demand efficiently.
The production capacity expansion project in Vietnam is progressing according to schedule and is expected to be completed in the second quarter of 2027. Upon completion, PRIME Vietnam’s glazed porcelain tile capacity will increase to approximately 40% of its total production capacity, aligning the product portfolio with international demand for durable, modern surface decoration materials.
Transforming Thailand Production Base to Boost Efficiency Against Imports
For its Thailand strategy, recognized as the “Profitability Pillar,” SCGD focuses on enhancing production efficiency and competitiveness through the Ceramic and Glazed Porcelain Plant Consolidation project. This is combined with investments in new glazed porcelain production lines that fully integrate automation systems to streamline processes and modernize manufacturing standards.
The restructuring in Thailand is targeted for completion by the third quarter of 2027. Once the Plant Consolidation and automation integration are complete, unit production costs are expected to decrease significantly by 16% to 20%. This cost reduction will enhance competitiveness against lower-priced imports while maintaining higher gross profit margins for surface decoration products in Thailand.
Concurrently, performance in new product categories in Thailand showed strong growth momentum, with sales in new businesses expanding by 34% year-on-year. This reflects success in managing a diverse portfolio of core and complementary products to meet evolving consumer preferences. Additionally, SCGD is accelerating the expansion of its distributor network across ASEAN to broaden its sanitary ware customer base and drive regional sales growth.
Partnering with Swiss and Chinese Giants to Enter Thailand’s Smart Toilet Market
A key milestone in SCGD’s strategy is its full-scale entry into the smart sanitary ware market. Siam Sanitaryware Co., Ltd., a leading manufacturer and distributor of sanitary ware under the COTTO brand, has partnered with Axent Switzerland AG—a global expert and leading Chinese smart sanitary ware component manufacturer—to form a joint venture to construct a manufacturing and assembly plant for smart toilets and tankless toilets in Thailand.
The joint venture targets a production capacity of 96,000 units per year to cater to modern living trends focused on innovation, hygiene, and convenience. Partnering with Axent Switzerland AG combines premium smart sanitary ware innovation with COTTO’s strong brand reputation and extensive ASEAN distribution network, establishing a competitive advantage in the high-value sanitary ware market.
Mr. Numpol Malichai, Chief Executive Officer and President of SCG Decor Public Company Limited, emphasized the strategic importance of this development: “SCGD is pushing forward its 2-year aggressive strategy (2026–2027) to enhance competitiveness and unlock long-term growth opportunities. This includes expanding production capacity in Vietnam, upgrading our Thailand manufacturing base, and entering the smart toilet segment through a joint venture between Siam Sanitaryware—a leader under the COTTO brand—and our Chinese partner, Axent Switzerland AG. This partnership establishes a plant in Thailand to manufacture and assemble smart toilets and tankless toilets with a capacity of 96,000 units per year, serving growing market demand and strengthening our sanitary ware business.”
High Financial Discipline and Interim Dividend Payout for Shareholders
SCGD maintains a strong financial structure, backed by cash and cash equivalents totaling 9,218 million baht, representing 25% of total assets. The Net Debt to EBITDA ratio stands at a low 1.4 times, with a Net Debt to Equity ratio of just 0.2 times, demonstrating prudent financial management and flexibility to support future investments.
In light of these operating results, the Board of Directors approved an interim dividend payment for the first half of 2026 at 0.155 baht per share, totaling 256 million baht. This represents a payout ratio of 60% of net profit, excluding non-recurring expenses. The Ex-Dividend (XD) date is set for August 4, 2026, with the record date on August 5, 2026, and payment scheduled for August 19, 2026.
Mr. Sittichai Sukkitprasert, Chief Financial Officer of SCG Decor Public Company Limited, highlighted the company’s financial stability: “SCGD remains committed to driving growth through efficient business management, cost optimization, cash flow management, and strategic capital allocation. We maintain strict financial discipline to support investments that create added value and enhance competitiveness. With 9,218 million baht in cash and cash equivalents—accounting for 25% of total assets—a Net Debt to EBITDA ratio of 1.4 times, and a Net Debt to Equity ratio of 0.2 times, our financial flexibility leaves us well-positioned for future investments.”
Commitment to Sustainable Growth Recognized on ESG Emerging List
Beyond financial performance and market expansion, SCGD continues to prioritize Sustainable Development (ESG) principles, earning external recognition. Recently, the company was selected for the “ESG Emerging List” and included in the ESG100 Universe by the ESG Rating unit of the Thaipat Institute.
This recognition underlines SCGD’s commitment to conducting business with environmental responsibility, social commitment, and good governance, while generating sustainable returns for shareholders and stakeholders—a key pillar in maintaining its market leadership in surface decoration and sanitary ware across ASEAN.
Mr. Numpol Malichai, Chief Executive Officer and President of SCG Decor Public Company Limited, concluded: “SCGD’s inclusion in the ‘ESG Emerging List’ and the ESG100 Universe by the Thaipat Institute’s ESG Rating unit reflects our commitment to leading the industry while achieving sustainable growth.”
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