SCG Ceramics reported its 2022 financial results with sales revenue of 13.157 billion baht, an increase of 17% due to rising domestic sales and exports. However, it faced a loss of 228 million baht due to asset impairment provisions and reduced inventory value for its large artificial stone production facility.In 2023, the company plans to tackle challenges with cost reduction strategies and accelerate its Energy Saving projects, while pushing COTTO to expand its customer base to the younger generation.

Mr. Nampol Malichai, Managing Director of SCG Ceramics Public Company Limited stated that the overall ceramics market in the country is expected to continue growing in the first half of this year, driven by the growth of real estate projects and the recovery of the tourism sector, which boosts demand for ceramics. However, attention must be paid to risks from rising interest rates and household debt affecting consumer purchasing power, as well as inflation that may slow down exports. It is anticipated that the export market will not see significant growth in the first half due to high volatility from capital control measures.

"Production costs, especially energy prices, have been continuously rising, which significantly impacts the business. The company has been increasing product prices every quarter, but it still does not align with actual costs. Therefore, this year, it is necessary to raise prices again to match raw material and energy costs. Overall growth is expected to see domestic market expansion of about 1-2%, while the international market is projected to grow by around 5% due to increased export values from higher product prices."

Over the past 2-3 years, the company has continuously adapted both in the short and long term. In 2023, it has set an investment budget of 450-500 million baht to strengthen its business by upgrading machinery to improve production efficiency and reduce energy consumption, alongside projects aimed at further energy savings in the production process.

Additionally, it plans to invest in expanding stores with distributors and modern trade outlets to make products more accessible to customers. The focus will be on managing the product portfolio by selling higher-margin items while enhancing standards in design, aesthetics, product quality, and superior service compared to both domestic and international products, especially those competing primarily on price. The aim is to expand the customer base to the younger generation and online channels, which are becoming significant purchasing forces.

Regarding revenue and profit generation, additional income is expected from new products and services such as LT by COTTO, Pool & Decorative Tiles, C'Tis comprehensive surface material installation services, surface installation and repair products, and SUSUNN Smart Solution in energy management and engineering.

For the 2022 financial results, the company reported total sales revenue of 13.157 billion baht, an increase of 17% from 2021 due to price adjustments and growth in domestic sales. However, the company incurred a loss of 228 million baht, a 139% decrease from the same period last year. Excluding key items, normal operating profit was 469 million baht, down 13% due to soaring energy prices impacting profits in the fourth quarter, which is expected to remain a key factor affecting business operations and the ceramics market situation for some time this year.