SCGP achieved impressive growth in 2021 with sales revenues of Baht 124,223 million, up by 34% from the previous year, and profit of Baht 8,294 million, up by 28% from the previous year. This is a result of portfolio expansion to meet diversed demand of packaging products along with sustained investment in accordance with SCGP's strategic plans. The year 2022 will see continuous growth with revenue target of Baht 140,000 million and investment budget of over Baht 100,000 million in the next 5 years.
Mr. Wichan Jitpukdee, Chief Executive Officer, SCG Packaging Public Company Limited, SCGP, announces that the Company has achieved sustained growth as reflected in 2021 overall performance with Baht 124,223 million of sales revenues, an increase of 34% from the previous year, and Baht 8,294 million of profit, an increase of 28% from the previous year. Meanwhile, EBITDA stood at Baht 21,150 million, an increase of 25% from the previous year.
SCGP has managed to achieve a steady growth in 2021 amid many economic challenges including worldwide COVID-19 pandemic and subsequent viral mutations, supply chain disruption, container shortage, and rising freight rates. Yet, SCGP's growth was resulted from effective business model focusing on providing packaging solutions, developing innovative products, and expanding product range to respond to diversed demand for packaging products in consumers' daily life. Moreover, the Company has grown from business expansion through organic expansions and merger and partnership (M&P) deals as well as with effective management to response to different situations.
Since being listed on the Stock Exchange of Thailand (SET) in October 2020, SCGP has been investing in ASEAN and other regions with total investment budget of Baht 40,000 million. The investment has been made in 12 projects in terms of M&P deals as well as production capacity expansion. Out of 12 projects, 9 projects have been completed while the remaining 3 projects are on-going, including: (1) capacity expansion of packaging paper production of United Pulp and Paper Co., Inc. (UPPC) in the Philippines by 220,000 tons per year which is expected to be completed in the 1st quarter of 2022; (2) capacity expansion of foodservice products in Thailand and Vietnam by 1,838 million pieces per year which is expected to be completed in the 2nd quarter of 2022; and (3) construction of new packaging paper production facility in the north of Vietnam under Vina Kraft Paper Company Limited (VKPC) with total capacity of 370,000 million tons per year which is expected to be completed in 2024.
In a similar manner, growth in the 4th quarter of 2021 was as strong as the same period of the year before. Revenue went up to Baht 35,145 million, increasing by 49% from the same period the previous year and profit advanced to Baht 2,115 million, up by 42% from the previous year with EBITDA of Baht 5,409 million, increasing by 28% from the same period of the previous year. This was a result of increased demand for packaging in the food and beverages sector, consumer goods sector, and foodservice sector, especially during the year-end festive season. Sales growth also benefited from economic stimulus measures which were implemented in several countries along with the performance consolidation from M&P companies, Go-Pak, Duy Tan, Intan Group, and Deltalab.
Meanwhile, packaging demand during the 4th quarter of 2021 in ASEAN countries including Thailand, Vietnam, Indonesia, the Philippines, and Malaysia has risen from the previous quarter as demand in the food and beverages and consumer goods sectors have recovered following economic recovery in many countries as COVID-19 restriction measures were relaxed. This is particularly true in Vietnam where manufacturing industries and supply chains have rebounded to near normalcy while pulp price has dropped from major importing countries.
In consideration of the FY2021 financial performance, the Board of Directors has proposed for shareholder approval at the Annual General Meeting (AGM), a full year 2021 annual dividend payment of 0.65 Baht per share, of which 0.25 Bt/share was previously paid as an interim dividend on 25 August 2021. The final dividend payment of 0.40 Bt/share is on 25 April 2022, record date of 7 April 2022, and XD-date of 5 April 2022.
Mr. Wichan said that the economic and consumption trends in 2022 are expected to recovered gradually due to more relaxed COVID-19 restrictions while heightened freight rates remain. However, inflation will continue to put pressure on production and consumption. Still, SCGP is determined to achieve sustained growth and has planned to increase sales to reach Baht 140,000 million with full-year revenue recognition from completed M&P deals and from capacity expansion that will be completed this year. Furthermore, the Company has stipulated a 5-year investment plan amounting to over Baht 100,000 million for expansion in ASEAN, which is SCGP's primary strategic area, while keeping an eye on competent investment opportunities in other regions.
The CEO added that environmental, social, and governance (ESG) principles provide an important framework to strengthen SCGP's operation. In 2021, SCGP was selected as one of the Thailand Sustainability Investment (THSI) companies by the SET, was chosen for the Rising Star Sustainability Awards by the SET Awards 2021, and was rated a Gold Medal by the EcoVadis Sustainability Ratings. In addition, to elevate its ESG policy, the Company has set a target to achieve Net Zero in 2050.