SCG Decor Public Company Limited (SCGD) recorded an adjusted net profit of THB 308 million for the third quarter of 2026, marking a 163% jump quarter-on-quarter. The performance was anchored by robust regional demand, led by a 32% volume increase in glazed porcelain tiles across Vietnam’s domestic and export channels.
Regional Optimization Powers Third-Quarter Earnings
The company’s third-quarter revenue reached THB 5,638 million, up 5% from the preceding quarter, supported by positive momentum across its regional footprint. Vietnam served as the core growth engine, driven by an uptick in local construction activity and competitive export operations under SCGD’s Regional Optimization strategy.
Mr. Numpol Malichai, Chief Executive Officer and President of SCGD, noted that PRIME’s competitive cost structure and manufacturing capability enabled sustained sales momentum. Financial performance was further aided by balance sheet optimization, as debt refinancing lowered the company’s average borrowing costs from 2.4% to 1.7% during the period.
For the first nine months of 2026, SCGD generated THB 657 million in adjusted profit, down 8% year-on-year, alongside an adjusted cash EBITDA of THB 2,217 million. The lower nine-month figures reflected a softer domestic market in Thailand and second-quarter restructuring outlays tied to plant consolidation. Excluding non-recurring charges and asset write-offs, nine-month adjusted profit stood at THB 808 million with an EBITDA of THB 2,405 million.
Strategic Realignment in Vietnam and Thailand
To capture sustained regional demand and navigate domestic market headwinds, SCGD is executing targeted operational shifts across its primary manufacturing bases. In Vietnam, where the PRIME facility operated at full capacity throughout the third quarter, the company is advancing a capacity expansion of 13 million square meters annually for glazed porcelain tiles, with commercial operations slated for the first half of 2027.
In Thailand, the company is consolidating ceramic tile production lines to sharpen cost competitiveness against imported goods. Installation of core machinery is currently underway to manufacture large-format glazed porcelain tiles locally, insulating margins and modernizing the product mix.
Mr. Sitichai Sukkitprasert, Chief Financial Officer of SCGD, stated that the regional realignment allows the business to scale rapidly in high-demand markets like Vietnam, Malaysia, and the Philippines, while insulating operations against energy price volatility and slower construction cycles in Thailand.
Portfolio Diversification and High-Value Categories
SCGD’s push into new product categories delivered a 29% year-on-year revenue increase in the first nine months of 2026. Growth was led by Stone Plastic Composite (SPC) flooring, which posted a 24% volume increase and operated at 85% capacity utilization. In response, SCGD is investing in a second production line to double annual SPC capacity from 1.44 million to 2.88 million square meters by the second quarter of 2027.
The smart sanitary ware segment also expanded, registering a 13% year-on-year volume gain. SCGD continues to broaden its smart portfolio across varied price segments under brands such as SENSIS and KLIRR. Additionally, the company is establishing a regional manufacturing base in partnership with Chinese smart sanitary ware manufacturer AXENT, with commercial production targeted to begin in the second quarter of 2027.
Liquidity Position and Medium-Term Targets
SCGD closed the third quarter with THB 8,345 million in cash and cash equivalents, maintaining a net debt-to-adjusted EBITDA ratio of 1.2 times and a net debt-to-equity ratio of 0.2 times. Management confirmed that the conservative leverage profile preserves operational flexibility for capital investments across Southeast Asia.
For the remainder of 2026, the company anticipates full-year profit growth over 2025 levels, excluding non-recurring expenses. Fourth-quarter momentum is projected to be supported by peak seasonal demand and government budget disbursements in Vietnam, post-flood reconstruction activity in Thailand, and elevated year-end building material demand in Indonesia and the Philippines. The company reaffirmed its strategic roadmap toward achieving an annual EBITDA of THB 3,500 million by 2028.
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