Half-Year Revenue of 14 Billion, Profit Exceeds Expectations! How the Asian Packaging Leader Maintains Its Strong Position?

SCG Packaging Public Company Limited (SCGP) is a Thailand-based integrated packaging solutions provider and a leader in the industry within the ASEAN region. The company is committed to offering a wide range of innovative products and services, aiming to become a leading multinational consumer packaging solutions provider.

SCGP Group was established in 1975. Since its inception, the company has continuously developed steadily and grown, and it has now become the largest manufacturer of packaging paper and corrugated cartons in the ASEAN region. In pursuit of high-quality growth and striving to become the preferred packaging solutions provider for customers, SCGP continuously engages in mergers and acquisitions, deepens collaborations, and actively expands its own business.

SCGP's business is mainly divided into three major sectors: integrated packaging, fiber, and recycling. Among them, the integrated packaging sector is SCGP's largest division, offering a diversified product portfolio of over 120,000 stock keeping units. The product range includes corrugated boxes, retail display packaging, flexible packaging, rigid packaging, medical consumables, laboratory supplies, and packaging paper. The integrated packaging sector primarily serves high-growth areas such as the fast-moving consumer goods industry and e-commerce, fully meeting consumers' increasingly diverse needs.

The fiber business focuses on providing food service products, including "Fest" branded food packaging, offering comprehensive catering packaging solutions for the fast food and takeaway industries. At the same time, the fiber business also covers pulp and paper products, mainly including printing and writing paper, pulp, plantations, and bio-based solutions. The recycling and other businesses mainly involve the recycling of packaging materials, such as the recycling of paper and plastic materials in Europe and the United States.

In terms of factory layout, the packaging paper business has 8 factories in 4 countries, the paper packaging business has 32 factories in 3 countries, the pulp and paper & food service packaging business has 8 factories in 4 countries, the consumer goods and performance packaging business has 13 factories in 3 countries, and the recycling business has 86 factories in 4 countries.

Recently, SCG Packaging released its business results for the first half of 2025 and the second quarter. Despite facing global economic uncertainty, SCGP demonstrated strong operational resilience in the first half of the year. Total sales revenue reached 63.766 billion baht (approximately 14 billion RMB), and achieved 2.163 billion baht.(Equivalent to approximately 476 million RMB)During the second quarter, the company also performed remarkably well, with total sales revenue reaching 31.557 billion Thai Baht and a reported profit of 1.01 billion Thai Baht for the period.

SCGP CEO Wichan Jitpukdee stated that the development momentum of the ASEAN packaging industry remains strong in the second quarter of 2025, mainly due to the robust growth in domestic consumption across various countries. Government measures to stimulate consumer spending have further reinforced this growth trend. He pointed out that the economic growth rates of most ASEAN countries are still higher than those of other regions. In addition, the accelerated growth of exports to the United States—especially in consumer goods and food and beverage products—prior to import tariff adjustments has also provided strong support for the overall growth of the industry.

Looking ahead to the second half of the year, Wei Chang·Jipu Kedi predicts that domestic packaging demand in ASEAN will continue to rise, especially in the food, beverage, and consumer goods sectors. This growth will be driven by various factors, including economic stimulus measures in different countries, a projected GDP growth rate higher than other regions (notably in Vietnam, Indonesia, and the Philippines), as well as year-end inventory replenishment activities. However, he also cautions that the costs of waste paper and logistics are expected to increase as regional demand improves, and close attention must still be paid to the potential impact of unresolved reciprocal tariff policies.

SCGP continues to implement its growth strategy in the ASEAN region, focusing on proactive marketing through packaging solutions that meet consumer needs. This strategy has led to steady growth in the company's integrated packaging business sales, with outstanding performance in the Vietnamese market, despite most product prices remaining stable.

In the pulp and paper business, sales volumes declined due to weakened demand in the textile and apparel industries. However, the company focused on achieving cost efficiency and sustainable operations by leveraging artificial intelligence and machine learning throughout the value chain, which was particularly evident in its Indonesian operations. SCGP has begun applying AI to energy optimization, increasing the utilization rate of domestic wastepaper, and effectively managing financial costs. These initiatives have enabled the Indonesian business to reach the EBITDA break-even point, having a positive impact on the company’s overall performance.

To address the economic situation in the second half of the year, SCGP will continue to expand its packaging business while strengthening packaging solutions to enhance customer experience and provide added value, thereby meeting the growing regional demand. The company also announced its proactive strategy of "value chain flexibility and agility" to tackle reciprocal tariff issues and achieve rapid adjustments through regional management.

SCGP is actively advancing its strategy of expanding into high-potential sectors. Recently, the company increased its stake in Vietnam’s Duy Tan Plastics Manufacturing Company. This investment aims to leverage Duy Tan Plastics’ comprehensive solutions and diverse product portfolio to meet the needs of the rapidly growing ASEAN market. This move will accelerate SCGP’s growth in the consumer packaging business, aligns with the company’s strategy to strengthen its operational base in Vietnam—a key high-potential market in the region—and is expected to enhance long-term profitability and competitiveness.

Regarding reciprocal tariff measures, SCGP stated that currently, revenue from the United States accounts for approximately 4% of its total revenue, with this income primarily derived from consumer goods exports, thus the impact is limited. Nevertheless, the company is actively implementing a strategy to increase its domestic packaging sales in ASEAN and expand exports to new potential markets such as India, Bangladesh, and Australia. The company is fully leveraging its flexible value chain, diversified production bases across ASEAN, and comprehensive integrated packaging solution portfolio. Through this approach, SCGP can integrate production and raw materials, engage in joint planning with customers, and consider contract manufacturing schemes, thereby achieving cost competitiveness in each market.

SCGP has also achieved remarkable accomplishments in sustainable development. The company continuously improves its Environmental, Social, and Governance (ESG) and circular economy principles in accordance with international sustainability guidelines. SCGP has been awarded the EcoVadis Platinum Medal for the second consecutive year, fully recognizing its outstanding performance in the field of sustainability. In addition, the company has developed over 169 products and 16 processes and has obtained product carbon footprint certification. Currently, it has completed 50% of its target to have all products certified by the fourth quarter of 2025.