SCGP Reports Q1 2026 Profit Growth on Indonesia Recovery and Efficiency Gains

SCG Packaging Public Company Limited (SCGP) reported higher profit for the first quarter of 2026, supported by improved operations in Indonesia, cost optimisation measures, and steady domestic consumption across ASEAN markets.

The company recorded revenue from sales of Baht 29,295 million, down 9% year-on-year and 3% quarter-on-quarter. EBITDA rose to Baht 4,641 million, increasing 10% year-on-year and 2% from the previous quarter. Profit for the period reached Baht 1,566 million, up 74% year-on-year and 30% quarter-on-quarter, in line with company expectations.

SCGP attributed the performance improvement largely to its Indonesian operations, where enhanced financial cost management and adjustments to energy mix contributed to stronger results. The integration of its value chain was further advanced following the acquisition of a 100% stake in PT Prokemas Adhikari Kreasi (MYPAK), a paper packaging manufacturer. The company also expanded the use of artificial intelligence and machine learning in production processes to improve efficiency.

Looking ahead to the second quarter of 2026, SCGP said global economic conditions are expected to soften amid geopolitical tensions, affecting supply chains, energy markets, and trade policies. However, ASEAN demand is projected to remain relatively resilient, supported by domestic consumption. Demand for everyday consumer packaging is expected to stay stable, while packaging linked to durable goods may recover more gradually.

To manage volatility, SCGP is implementing measures including increased use of alternative energy and diversification of resin sourcing across regions such as China, Taiwan, and the United States. The company is also focusing on customer-centric solutions, including the development of hybrid packaging such as polymer-coated paper, alongside continued expansion of its regional and global presence.

SCGP said alternative fuel accounted for 35% of its total energy consumption in the quarter, aligned with its targets to reduce greenhouse gas emissions by 25% by 2030 and achieve net-zero emissions by 2050.