Even though the packaging industry received positive sentiments from lower energy and natural gas prices, which are the primary factor of glass production. However, in the first quarter, the packaging industry still encountered pressure from higher fuel tariffs, or Ft, as well as higher interest rates. Moreover, the inflation rate, which slowed down but remained at a high level, affected consumers’ concern about their cost of living and the uncertainty of the global economic recovery.
In the first quarter of 2023, the Company's revenue increased close to the fourth quarter of the previous year. However, the revenue decreased in comparison with the first quarter of the previous year, mainly due to the glass packaging business in the Soft Drinks and Beer groups of which consumers were more price-conscious, owing to the impact of high inflation.
| 3M23 | 3M22 | 2022 | 2021 |
|---|
| Revenues | 3,835.48 | 4,066.51 | 14,366.61 | 12,476.38 |
| Expenses | 3,706.10 | 3,783.95 | 13,685.40 | 11,686.83 |
| Net Profit (Loss) | 75.50 | 216.78 | 506.61 | 523.40 |
| Assets | 17,805.65 | 15,179.04 | 16,055.40 | 18,707.70 |
| Liabilities | 12,466.32 | 10,302.07 | 11,182.31 | 13,218.97 |
| Shareholders' Equity | 4,927.02 | 4,499.24 | 4,522.06 | 4,384.80 |
| Operating | 171.91 | 956.09 | 1,958.15 | 2,172.40 |
| Investing | -1,198.79 | 246.29 | -810.32 | -2,039.02 |
| Financing | 972.17 | -1,220.95 | -1,099.16 | -101.72 |
| EPS (Baht) | 0.11 | 0.31 | 0.73 | 0.75 |
| GP Margin (%) | 10.30 | 14.87 | 12.24 | 16.88 |
| NP Margin (%) | 2.05 | 5.55 | 3.67 | 4.80 |
| D/E Ratio (x) | 2.33 | 2.11 | 2.29 | 2.41 |
| ROE (%) | 7.75 | 11.35 | 11.38 | 11.03 |
| ROA (%) | 3.41 | 5.08 | 4.06 | 4.46 |
- The production capacity expansion project of Flexible Packaging is on plan and expected to commercial operate in 2Q23 which will be able to increase sales by about THB 700 million per year.
- BGP has expanded of production area in Ayutthaya Branch 2 to prepare for flexible packaging production, which is expected to start production in Quarter 2 2023.
The Company aims to reduce carbon emission by 10%, by 2025. For the year 2026 through 2030, the Company targets to reduce carbon emission by 30% and becoming Carbon Neutral by 2050.
Gross profit in the first 3 months of 2023 was 393 million baht, representing a gross profit margin of 10.3%, which has started to recover from the 4th quarter of 2022 at 8.8% and the cost of sales is likely to start well. up from now on
Sales revenue from Glass Packaging Business Sales revenue was THB 3,345 million, decreased by THB 176 million or 5% YoY, mainly from domestic sales. In particular, the sales of Soft Drinks decreased by 112 million baht or 32% YoY, and Beer decreased by 64 million baht or 4% YoY. In addition, export sales declined as compared to the same quarter last year when the economy expanded due to the opening of the country after the government relaxed COVID-19 measures
Sales revenue from Packaging Business Sales revenue was THB 532 million, increased by THB 42 million or 9% YoY, which contributed to an increase in Paper packaging by THB 54 million or 27% YoY and Plastic bottles by THB 6 million or 3% YoY. However, Label products decreased by THB 18 million or 18% YoY.
16 February 2023
The investment in glass furnace no.1 maintenance (Cold Repair) of the Ayutthaya Glass Industry Company Limited to increase the capacity and quality of glass packaging.
23 February 2023
The establishment of a new subsidiary “BGC Supply Chain Management Company Limited”, in which the Company holds 100% of shares. This transaction would diversify the Company’s sources of revenue and support core business as the Company foresee growth opportunities in the supply chain management.
28 February 2023
BGC Packaging Company Limited (“BGCP”), a wholly-owned subsidiary of the Company, signed an agreement to purchase ordinary shares of Prime Packaging Company Limited (“Prime”), which is a manufacturer and distributor of flexible plastic packaging and plastic rolls. On March 30, 2023, BGCP received 75% of Prime’s ordinary shares.
The Company managing the risk of cost volatility, particularly the natural gas that has increased due to the conflict between Russia and Western countries by adjusting production formulas to reduce the cost of production per unit, inventory management, and increasing the production efficiency by adopting innovative technology throughout the production process in parallel with the exploration of alternative energy and negotiation with the customers for price adjustments to cope with the rise in natural gas price.
- Listed in the Thailand Sustainability Investment Index (THSI) of the year 1H2023
| as of 31/03/23 | BGC | PKG | SET |
|---|---|---|---|
| P/E (X) | 13.57 | 21.90 | 19.27 |
| P/BV (X) | 1.52 | 1.68 | 1.59 |
| Dividend yield (%) | 4.49 | 2.23 | 2.91 |
| 31/03/23 | 30/12/22 | 30/12/21 | |
|---|---|---|---|
| Market Cap (MB) | 6,875.00 | 6,944.44 | 7,361.11 |
| Price (B/Share) | 9.90 | 10.00 | 10.60 |
| P/E (X) | 13.57 | 13.66 | 13.23 |
| P/BV (X) | 1.52 | 1.55 | 1.67 |
