SCG Packaging Plc (SCGP) has earned 112 billion baht over the first three quarters of 2022, up 26% year-on-year, but profit dipped 13% to 5.3 billion because of high energy and raw material prices across industries.
Wichan Jitpukdee, chief executive of SCGP, attributed the revenue increase to continuous expansion through a merger and partnership strategy as well as improved demand for food and beverage packaging, following the country's reopening and the easing of the Covid-19 situation.
In the third quarter alone, the company recorded 1.8 billion baht in profit, a 3% increase from the same period last year, thanks to product price adjustment, the growth in fibrous business with major impact from the increase in pulp price, augmented demand for food service packaging, as well as the increase in demand for food and beverage and consumer products in the local and overseas markets.
The profit increase also resulted from the financial consolidation of Peute Recycling BV, a packaging material recycling company in the Netherlands, and Jordan Trading Inc, a New York-based trader of waste materials, notably paper.
SCGP earlier announced it acquired a 90.1% stake worth US$1.98 million or around 73 million baht in Jordan Trading.
The company also offered to buy a 100% stake in Peute Recycling.
The investment in Jordan Trading will lead to direct access of high-quality recovered paper, known as RCP, in the US. RCP is a main material that can directly help to improve the quality of packaging paper and fibre packaging.
The synergy between Jordan Trading and Peute Recycling would expedite the expansion of SCGP's international packaging material recycling network, said Mr Wichan.
He is confident SCGP will this year reach its revenue target of 150 billion baht through a mix of strategies, including merger and partnership (M&P).
Looking forward to the Asean economy from the last quarter of this year to early 2023, Mr Wichan said he expects domestic consumption and tourism to keep recovering, leading to improved demand for essential goods such as food and beverage.
