SCG Ceramics has established itself as a sustainable investment company, showcasing competitive profits in the second quarter and first half of 2021. The company presents its air-purifying tile innovation and pushes the SUSUNN brand to fully engage in the alternative energy business.

Mr. Nampol Malichai, Managing Director of SCG Ceramics Public Company Limited or COTTO, the manufacturer and distributor of tiles under the brands COTTO, SOSUCO, and CAMPANA, revealed the unaudited financial results for COTTO in the second quarter of 2021, stating that the company achieved sales revenue of 2,807 million baht, an increase of 16% compared to the same period last year, with a net profit of 177 million baht, up 328%. The company has continued to effectively control administrative expenses and improve production efficiency, resulting in performance close to expectations.

For the first half of 2021, the company reported sales revenue of 5,613 million baht, a 12% increase from the same period last year, with a net profit of 364 million baht, up 119%, aligning closely with forecasts.

Mr. Nampol Malichai, Managing Director of SCG Ceramics Public Company Limited or COTTO

“Although natural gas prices have risen significantly, our continuous improvements in production efficiency have allowed us to maintain production costs in line with our plans. The sales figures for this quarter and the first half of the year show a substantial increase compared to the same period last year, despite the more severe COVID-19 outbreak. This is due to the fact that key distribution channels, especially modern trade and large retailers, have been able to operate normally, allowing sales in the mid to lower market segments to meet expectations. However, the COVID-19 situation in neighboring countries like Laos and Cambodia, as well as the unrest in Myanmar, has slightly reduced sales in the international market compared to last year,” Mr. Nampol stated.

Mr. Nampol further mentioned that the market conditions in the second half of the year are expected to be impacted by the COVID-19 outbreak, leading to a slow economic recovery and increased uncertainty, as consumer purchasing power has not yet rebounded. The Thai economy in the second half is likely to expand below expectations due to several negative factors, including the prolonged outbreak and virus mutations affecting the economy and domestic spending, plans for reopening the country, business closures, and layoffs. Recently, the new wave of COVID-19 spreading to construction camps has further exacerbated labor shortages. The real estate market is expected to slow down new projects and accelerate current transfers. The government may stimulate the economy through financial measures to support business recovery, income generation for citizens, and expedite vaccination coverage.

However, despite the real estate market's tendency to slow down due to the COVID-19 outbreak affecting customer purchasing decisions, the renovation and decoration market still shows potential for growth, especially as people have experienced prolonged periods of staying at home, increasing the demand for home improvements to meet diverse usage needs. Therefore, the company is accelerating the launch of innovative products in the Health and Clean category, confident that once the situation stabilizes, there will be a positive response from consumers who prioritize health.

COTTO continues to lead trends in health-oriented innovative products that cater to most home and residential living needs. With the annual high levels of PM2.5 dust pollution posing a threat to respiratory health, the company has recently launched the “Air Purifying Tile” or AIR ION, which helps reduce fine dust particles that are more dangerous than expected. When installed on 40% of the floor or wall area, AIR ION tiles can capture up to 89% of PM2.5 dust, thanks to a coating layer made from natural minerals that release over 3,000 negative ions per cubic centimeter to attract airborne dust particles to the ground, ensuring clean air throughout the day without additional electricity costs,” Mr. Nampol explained.

Regarding the brand SUSUNN, which provides consulting, design, distribution, and installation of renewable energy systems, the company has officially launched the SUSUNN brand this quarter by signing collaborations with both public and private sectors, such as PTT Public Company Limited for solar power systems for industrial factories and office buildings, and Osotspa Public Company Limited regarding energy-saving technologies in Solar Business, Energy Audit, and electricity and carbon credit trading projects through the SUSUNN Platform. Recently, a cooperation agreement was also signed with the Greenhouse Gas Management Organization (Public Organization) to promote and support carbon credit operations from SCG Ceramics' greenhouse gas reduction projects.

 “The SUSUNN brand is truly a hub of renewable energy experts. The company has received numerous awards both domestically and internationally, including the Thailand Energy Award and ASEAN Energy Award for several consecutive years. We have been fully operational for about two years and have clients across various industries, such as valve and fitting materials, construction materials, plastic bag products, and even industrial estates like the Songkhla Industrial Estate in the Special Economic Zone (SEZ). Over the past two years, we have generated approximately 227 million baht in revenue from products and services. Although this is not a high figure, it aligns with the growth trend of the clean energy market in the country, valued at around 20 billion baht, which is expected to continue growing over the next 3-5 years as we expand our target groups and services to meet customer demands, such as offering solar energy innovations like BIPV (Building Integrated Photovoltaics) panels that can replace construction materials like roofs or walls, solar carports with EV chargers, and energy management systems that include energy management certification systems and energy usage analysis, as well as energy conservation projects for clients with international standards, and projects that align with future government energy policies, such as electricity and carbon credit trading through intermediaries,” Mr. Nampol stated.
 
Additionally, this year, SCG Ceramics Public Company Limited or COTTO has been selected by the Thailand Development Institute to be included in the “Sustainable Investment Company” or ESG Emerging List as a publicly listed company with outstanding operations in environmental, social, and governance (ESG) aspects, making it a resilient choice for sustainable investment amid the COVID crisis. COTTO is one of 24 securities selected for the ESG Emerging group in 2021 and is also included in the ESG100 sustainable investment securities list for the year.

Recently, an overall performance assessment of the company by the Thailand Development Institute found that the company has disclosed performance data in all three areas: environmental performance, social performance, and governance performance, with an overall assessment rating of GOLD, the highest level.