SCG Ceramics reported a sales revenue of 3.231 billion baht for Q1 2022, a 15% increase, with profits rising by 13%. The company focuses on long-term business strategies to mitigate energy impacts and develop environmentally friendly products that add value.

Mr. Namphol Malichai, Managing Director of SCG Ceramics Public Company Limited (COTTO), a manufacturer and distributor of tiles under the COTTO, SOSUCO, and CAMPANA brands, announced the unaudited financial results for Q1 2022. The company achieved sales revenue of 3.231 billion baht, a 15% increase from the same quarter last year, driven by continuous demand for products, resulting in increased sales volume of ceramic tiles both domestically and for export. The company reported a profit of 212 million baht, a 13% increase compared to the same quarter last year. The company has been controlling administrative expenses and continuously improving production efficiency to mitigate the impacts of rising natural gas prices and raw material costs.

“Although the Omicron variant of COVID-19 has not affected business operations as much as previous waves, key factors moving forward include the prolonged conflict between Ukraine and Russia, which impacts energy prices and consumer goods prices, as well as the export of goods and the import of raw materials, which are crucial for production. Additionally, rising inflation and household debt affect consumer purchasing power and may slow down economic recovery in Q2-3,” Mr. Namphol stated.

“However, despite the direct impact from energy prices and the import of certain raw materials, the company has been preparing plans to mitigate these impacts. This includes continuous investment in energy cost reduction projects and improving production processes for greater efficiency. Furthermore, we prioritize adjusting production levels and raw material imports to align with demand. These ongoing actions ensure that the company maintains its potential and competitiveness,” Mr. Namphol added.

Mr. Namphol revealed that the company is preparing to address future energy challenges by focusing on long-term business strategies aligned with SCG's ESG 4 Plus framework, particularly improving production processes and increasing the use of renewable and alternative energy. This not only helps mitigate energy impacts but also reduces carbon dioxide emissions and supports the development of environmentally friendly products that add value, catering to consumers who are increasingly considering “eco-friendly” products as part of their purchasing criteria, alongside quality, price, and value for money.

“In the past, the company has launched several products under the COTTO brand that have received the SCG Green Choices label, focusing on energy savings from production processes that recycle energy and reduce greenhouse gas emissions, conserving natural resources by using renewable energy, extending product lifespan, or incorporating recyclable materials. Products certified under SCG Green Choices include floor and wall tiles produced with 40% less water and free from volatile organic compounds (VOCs), porcelain tiles produced with at least 25% less water and free from VOCs, and mosaic tiles produced with at least 25% less water,” he explained.

Recently, at the Architect Expo '65 held from April 26 to May 1, COTTO will showcase highlight products such as AIR ION tiles, which have special properties to capture PM2.5 dust, the latest version of HYGIENIC TILE that inhibits bacteria, and for the first time, the ECO Collection tiles that reduce natural resource use by 80% by recycling waste in the production process according to the Zero Waste approach, reducing water usage in production, and cutting carbon dioxide emissions from transportation by up to 75%.

The development of these products aligns with the business's sustainable operational approach, enhancing production efficiency, reducing energy consumption, and creating added value through environmentally friendly innovations, further reinforcing COTTO's position as a leader in innovative living solutions that cater to diverse lifestyles,” Mr. Namphol concluded.