SCG Décor forecasts 10% rise to 30 billion baht in ASEAN market
SCG Décor (SCGD), a key player in the decor surface and bathroom business, projects a 10% year-on-year revenue increase to 30 billion baht, largely fuelled by heightened sales in the ASEAN market, including a significant push for green products. The company anticipates its revenue will double by 2030.
Numpol Malichai, Chief Executive and Managing Director of SCGD, revealed the company’s intention to expand.
“We will expand our business through organic and inorganic growth strategies in Thailand and other ASEAN countries.”
A strategic focus will be on increasing sales channels in Thailand, southern Vietnam, and Cambodia to drive sales further, said Numpol.
“We will launch two new showrooms in Bangkok and Phuket. In Cambodia and Vietnam, we have also teamed up with local companies to launch new showrooms.”
The company aims to boost sales of high-value-added products, especially green products, in the ASEAN market. These products are not only popular with consumers for their quality but also offer a high-profit margin, said Numpol.
“These products will play an important role in boosting SCGD’s revenue.”
Currently, up to 82% of SCG Group’s total products are environmentally friendly.
SCGD has also managed to control operating costs through energy reduction programs, saving 60-70 million baht annually, said Numpol.
“This allows the company to better set product prices that can compete with its rivals.”
For 2024, SCGD has set an investment budget of 1 billion baht, excluding funds allocated for mergers and partnerships. The company has already utilised 746 million baht of this total.
From January to June this year, SCGD reported a 7% year-on-year drop in revenue to 13.3 billion baht. However, profit surged by 36% year-on-year to 541 million baht, primarily due to robust sales in Vietnam and high-value-added products.
Numpol pointed out that the economies of ASEAN countries like Vietnam, Indonesia, and the Philippines have been stronger than Thailand’s in the first half of the year.
Increased sales in these neighbouring countries have significantly contributed to the company’s revenue.
In contrast, consumer purchasing power in Thailand remained weak due to high household debt and sluggish economic growth, making people in the middle and upper market segments cautious about spending on house repairs or new construction projects, reported Bangkok Post.
