SCG Ceramics in 2020: Increased Profits, Prepared for Fierce Competition in the Ceramic Market, Launching New Products with Comprehensive Services to Meet Housing Trends, Accelerating Entry into the Renewable Energy Market Targeting Industrial Customers

Mr. Nampol Malichai, Managing Director of SCG Ceramics Public Company Limited, a manufacturer and distributor of tiles under the brands “COTTO” (COTTO), SOSUCO, and CAMPANA, revealed that the consolidated financial statements before review for COTTO in the fourth quarter of 2020 showed sales revenue of 2,419 million baht, a decrease of 5% compared to the same period last year and an 8% decrease from the previous quarter. The profit was 83 million baht, an increase of 219% from the same period last year but a decrease of 51% from the previous quarter due to the impact of the COVID-19 pandemic affecting exports to foreign markets, particularly to Cambodia, Myanmar, and Laos, as well as the container shortage causing delays in exports. Additionally, the slowdown in construction projects and large-scale projects from both the public and private sectors, along with some modern trade distribution channels temporarily halting operations, also affected sales and revenue.

For the financial performance in 2020, the company reported total sales revenue of 9,951 million baht, a decrease of 10% from 2019, with a net profit of 420 million baht, an increase from the previous year by 252 million baht. Key factors included reduced production costs due to lower natural gas prices, cost reduction capabilities, and improved production efficiency, as well as achieving targets in reducing sales and marketing expenses.

Regarding the domestic ceramic market situation, demand for ceramic tiles slightly slowed down compared to the same period last year, with ongoing negative factors, especially concerns about the new wave of COVID-19 outbreaks, flooding in several areas, and the end of debt suspension measures. Although the government has eased lockdown measures since the beginning of the last quarter and introduced measures to boost purchasing power for citizens, such as the state welfare card project, the half-price project, and the good shopping project, which may help stimulate domestic purchasing power, there are still no policies or measures that directly stimulate the economy in the real estate and construction materials sectors.

For the ceramic market situation in 2021, Mr. Nampol stated, “We must acknowledge that the current COVID-19 outbreak directly affects customer confidence at the beginning of the year, which is typically the peak demand period. Although we cannot yet assess the situation accurately, it is expected to impact the overall economy of the country, causing it to continue to slow down for some time. Competition will intensify due to the slowdown in demand and purchasing power. In this situation, the company has adapted and prepared plans to cope, focusing on maintaining market share and controlling unnecessary expenses, as well as accelerating the implementation of various plans to support future recovery. In the meantime, we have taken lessons learned from the previous lockdown to expedite actions, including enhancing online sales channels and planning and estimating customer purchasing demand and production to appropriate levels.”

In terms of key operational strategies, at the beginning of this year, the company will continue to focus on diverse channels both offline and online to reach consumers at all levels. Currently, the company has improved and developed distribution channels to be more diverse, allowing consumers to access the company’s products through various channels and focusing on innovative products (High Value Added) that combine functionality with continuous aesthetic appeal to meet customer needs and align with emerging trends, especially the trend of prioritizing health and hygiene (Well-Being), awareness of hygiene and safety, as well as preparing spaces for elderly family members, along with the trend of home renovation.

“Last year, the company launched several product series under the COTTO brand in the Hygienic Tile category, developed to address health and cleanliness concerns. To date, in addition to its outstanding functionality that emphasizes properties that inhibit the growth of bacteria, it is evident that there has been an enhancement and development in aesthetics. Recently, we have developed wood-patterned tiles with a Random Design for each tile, making them unique and different, resembling natural wood patterns while maintaining the hygienic tile properties. Additionally, we continue to push new products, such as Smart Flexible LT flooring by COTTO, which is beautifully designed, easy and quick to install, and environmentally friendly, aiming to be a product expert that offers comprehensive solutions from products to services, with products that meet the needs of every area and complete accessories to finish the job, including a standard installation service team, allowing customers to purchase everything in one place,” Mr. Nampol added.

Regarding business expansion in the energy sector under the brand “SUSUNN,” the company has been providing consulting, designing, distributing, and installing renewable energy power generation systems, particularly solar power systems. Mr. Nampol stated, “The vision of the SUSUNN brand is to become a solution provider in engineering, energy, and industrial estates at the ASEAN level with digital technology. We believe that with the potential and experience of our team, this is definitely achievable. Since we started operations 2-3 years ago, our products and services have received excellent feedback from large industrial customers, and we continuously attract new customers, aligning with the current market situation of solar energy, which continues to grow well and has a very positive outlook for the future.”

Under the SUSUNN brand, we offer products and services related to energy management and renewable energy, including:

RENEWABLE ENERGY

We provide comprehensive consulting, design, and installation services for solar power generation systems, including rooftop solar (Solar Rooftop), ground-mounted solar (Solar Farm), and floating solar power systems (Solar Floating), utilizing water bodies for maximum benefit.

SOLAR CARPORT SOLUTIONS

We offer design and installation services for solar panel roofs for parking lots, which are convenient, quick, cost-effective, safe, and standard-compliant. They can be easily disassembled and relocated to maximize space utilization.

ENERGY MANAGEMENT

We provide energy management services, energy management certification, energy usage analysis, and energy conservation projects for our clients' establishments with international standards, as well as developing renewable energy and energy conservation systems in the industrial sector.

SOLAR MONITORING SYSTEM

We offer a monitoring and control system for energy usage through an application developed to track and summarize energy usage data from solar power generation systems to optimize energy efficiency.

Interested parties can contact us for more information through:

Website: https://susunn.scgceramics.com and

Facebook: www.facebook.com/susunnenergy or the company website: www.scgceramics.com