SCG Ceramics has announced its first half of 2022 financial results, showing a 4% profit growth and a 17% increase in sales, with a 19% rise in sales for the second quarter. Despite facing reduced profits due to rising energy and raw material costs, the company remains confident in growth from its core customers both domestically and internationally. It anticipates a slowdown in the market during the second half of the year compared to the first half, partly due to seasonal factors, but expects to perform better than last year, providing an opportunity to promote HVA products and alternative energy under the SUSUNN brand.

Mr. Namphol Malichai, Managing Director of SCG Ceramics Public Company Limited, or COTTO, the manufacturer and distributor of tiles under the COTTO, SOSUCO, and CAMPANA brands, stated that for the first half of 2022, the company achieved sales revenue of 6,606 million baht, a 17% increase, with a profit of 378 million baht, up 4%, which is close to expectations. This growth is attributed to effective cost management and continuous production efficiency improvements, as well as adjusting average selling prices to align with rising energy costs to mitigate the impact of increased production costs.

In the second quarter of 2022, the company's sales revenue continued to grow compared to the same period last year and the previous quarter, with sales revenue of 3,376 million baht, a 19% increase driven by sales in both the domestic and international markets. Exports have also shown good growth, particularly in Myanmar, Cambodia, and Laos. However, the company reported a profit of 167 million baht for the quarter, a 6% decrease compared to the same period last year, primarily due to continuously rising energy and raw material costs since the beginning of the year.

It is anticipated that the construction and building materials industry will continue to expand in 2022, despite higher costs and a gradual recovery in the housing market during the second half of the year. The middle to upper consumer segment still shows demand for housing, with a shift in purchasing behavior towards preferring more spacious single-family homes outside urban areas. Additionally, the project-based customer segment, both medium and large scale, remains a crucial and expanding customer base for the company.

 

However, it is essential to monitor the significantly rising inflation rates, which are increasing the cost of living and pressuring consumers to delay housing purchase plans, despite ongoing demand, along with fluctuations in currency and transportation costs that are rising in line with energy prices, which may impact business operations. Meanwhile, measures to reopen the country will play a crucial role in stimulating the economy and gradually reviving the tourism sector, leading the company to believe that it can still achieve growth in the second half of the year compared to last year.