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, disclosed the unaudited financial results for COTTO in the third quarter of 2021, stating that the company had sales revenue of 2.84 billion baht, an increase of 5% compared to the same period last year, and a profit of 162 million baht, a decrease of 5% year-on-year. This decline was attributed to the COVID-19 situation and flooding in several provinces, which led to a reduction in ceramic tile sales volume. However, the company was able to slightly increase the average selling price. In this quarter, the company also generated 131 million baht from land sales in the Nong Khae Industrial Estate.

Mr. Namphol stated, “Looking back at last year, lockdown measures were eased at the beginning of the quarter, but this year the situation is reversed, with the announcement of strict lockdown measures due to the resurgence of COVID-19 in its third wave. This has pressured economic activities, directly impacting sales in the project segment, although sales in modern trade and ceramic warehouses remained stable. International sales decreased in Myanmar, Cambodia, and Laos due to the COVID-19 situation, while sales in other international markets began to recover in line with the global economic conditions. Additionally, the depreciation of the Thai baht has positively affected exports. Domestically, although there are signs of recovery driven by spending, investment, and government economic stimulus measures, they only partially support purchasing power due to ongoing concerns about the COVID-19 outbreak and strict containment measures, compounded by flooding in several provinces at the end of the last quarter.”

Regarding the recent flooding situation, Mr. Namphol anticipates that conditions will improve within 1-2 weeks. Once the water recedes, consumers are expected to have an increased demand for products to repair and decorate their homes, aligning with the government's economic recovery plans and assistance measures for disaster victims.

“It is expected that government economic stimulus measures being gradually introduced towards the end of the year will help boost the economy in the fourth quarter and into early next year. However, there are factors that need to be monitored, particularly the global energy price situation, especially the rising prices of natural gas and oil since the end of the last quarter, which directly affect production costs in terms of energy and logistics. This impact is expected to continue for some time, and it is crucial for all operators to prepare for it,” Mr. Namphol concluded.