Good afternoon, distinguished participants. It is with great pleasure that we welcome you again for the first analyst conference of the year. Today, we will cover the performance of the fourth quarter, and also for the full year of 2025. My name is Sornnarin Bangkedphol from the IR team. I will be your host on this afternoon's session. We will begin with the presentation by the management, and we will have the Q&A session right after. Please allow me to introduce and hand over the floor to the SCGP CEO, Wichan Jitpukdee, and SCGP CFO, Danaidej Ketsuwan. Thank you.
Good afternoon, and Sawasdee cup. Time flies so fast. We meet again for the first analyst conference for year 2026, and the result of our fourth quarter of last year, 2025, and the whole year of 2025. We are in the era of we call the geopolitical instabilities, political transition, trade and tariff. Even that situation happen, SCGP, beyond the strategy, SCGP also focus on the flexibility and agility so that we bring the business going up. We also focus on the cash management. That's going to be the vehicle to build a business going further. Last but not least, we also try to grow the business by design the business model, getting to customer and closer to the consumer. That the strategy add up on this era of the situation. With that, may I start with the consolidated key financial of last year.
Last year, we have the end it with the year with the sale revenue THB 124 billion , which reduce 6% year-on-year. The reason for the revenue on sale reduce because of the decline in the selling price, reduce 8% year-on-year. That the big portion. However, the sale volume also increase 4%. That reduce the impact from the selling price. With that, we ended last year with EBITDA THB 17 billion , which improved 7% year-on-year. The EBITDA margin 14%. Net profit are also the same, that we close the year with a net profit of THB 4 billion , which improve 10% year-on-year and still maintain at the 3% profit margin. In fact, 2024 is a 2.0% Something close to 3%.
This year, 3.0% Something, which higher than 3%, but we round up, it's become 3%, same as last year. The EBITDA and the net profit increase year-on-year, mainly the cost improvement and cost management. Thanks for the artificial intelligence, machine learning, and deep learning, also the generative AI. With that, we also get the RCT price reduce and also the energy cost also reduce. Next page is the business by segment. May start with the Integrated Packaging Business. Revenue from sale THB 95 billion, which also reduce 5% year-on-year. However, the EBITDA, THB 15 billion also improve by 17% year-on-year with the EBITDA margin 16%. The Integrated Packaging Business very strong domestic demand.
Beginning of last year, first half of last year, export to China had been reduced, and we did change the strategy to decoupling from export to China to focus on the domestic in Southeast Asia, Thai, Vietnam, Indonesia, and the Philippines. That introduced us to improve the domestic sale volume a lot in all product category. On top of that, we also improved the production efficiency, and that enhanced the profitability under the price pressure. For the Fibrous Business, we can see that the revenue from sale of THB 25 billion, which reduced 8% year-on-year. Also, the same, mainly from the selling price reduced. The EBITDA ending with THB 1.8 billion, which reduced 49%. And the EBITDA margin also reduced down to 7%. This is because of the very soft on the selling price of the Fibrous Business.
In terms of the business portfolio in year 2025, start from the left side, revenue from sale by the business unit. We see that last year, the consumer packaging business combined of 46%, which almost nearly half. This is a very good movement on that. In this, the fiber packaging and in box has been improved from 2024- 2025. Even we get the MYPAK consolidation in early December, and we wish that this will going further and strengthen the business in Indonesia. For the packaging paper on the graph on the left-hand side, which account for 38%, still the same in terms of the business unit here. On the right-hand side, revenue from sale by end destination. We see that in ASEAN still at 35%, almost maintain the same figure.
But the point that we see on the left side of the right-hand side graph is that from Thailand, revenues from sale increased from 42%- 44%. Thanks for the foreign direct investment to Thailand, especially those who come from China. In a bit further details that like electronic and electrical appliance that invest a lot, so like Midea, Hisense, TCL, things like that, the demand of the packaging has been improved. So that's why in Thailand this year, we improve a lot from those FDI. This year for the rest of the world, meaning export. In the past time, we report only China and U.S. export. This year, we add India. In 2025, the export to China down to 4%, it used to be 8%, that we lose coupling from China. The U.S. export still the same at 4%.
This year, we separate India to be a figure here. India, South Asia, we export to India at 3%. The reason that we move to India to be more visibility, because of this year, SCGP established, we call sale representative office in India. And with that, we also find the opportunity to invest in the downstream packaging in India, which is the strategy for midterm and long-term. So investing in the developing country, especially in the packaging, will give the value in the near future. In terms of the key performance index this year, just summarize that we target last year, EBITDA THB 18 billion, result, THB 17.2 billion, almost close. Even last year, the situation very tough, geopolitical instability, as I mentioned. Political transition, trade and tariff also are sometimes confusing, but we still maintain this high portion of the EBITDA.
In term of the operational excellence and supply chain excellence, we can reduce the cost THB 882 million. With this THB 882 million, THB 260 million is from artificial intelligence, machine learning, and deep learning alone, THB 200 million. This is a big portion. Thank for the team, thank for all the technology that we can do optimization and allocation. In term of our solution, last year, we can achieve up to 24%, and this will be more and more because of the made-to-order product, like the packaging. The customer stickiness are quite really sticky to this. Too sticky because of we decide on the solution to serve all the customer, and this will bring us to what we call the multinational company in very near future.
In term of the ESG and circular economy, we put up the target of the alternative fuel at 39%, we achieve 38%, almost close, because of we run at full capacity. That is why this year, we do more modification of the coal boiler, three coal boiler this year will be modification to use more the biomass. That the summary of the key performance indicator for the last year. In summary for year 2025, in term of our strategic growth, we close the deal on December 9 last year, acquire 100% stake in the Duy Tan, and this will increase our indication level from 18%- 26%, which is really a substantial improve and we are very confident that this will improve the operation, not only the packaging, but improve the operation of the Fajar.
We also invest joint venture with Howa at 75% to produce the wet pet food packaging, and this will be export to Japan. In Duy Tan, we increase the ownership to 100%. This is ready for the restructure of the business in the future. Last but not least, we invest the machine for producing the syringe and the needle. Now on the process of testing, and hopefully by the first quarter of this year, we will get the license to pull it. So, in the second quarter, we can contract to the customer for the selling. In term of the operations, we see that Fajar performance has been improved in term of EBITDA and net profit. With that, we grow domestic sales a lot in the Indonesia, and thanks for the strategy that we lose coupling from China.
In term of the energy mix, raw material, and interest cost reduction, that also top up on the reducing cost. The key of Fajar last year is about the cost reduction and the structure of doing the business. From the last month of 2025, we see also the selling price has been improved, so we can discuss on further. In term of the cost saving, we can do cost saving across ASEAN, Thai, Vietnam, Indo, Philippine. This also include Malaysia also. We use our technology and machine learning that is already presented. And this year we modify boiler from the box pan using the gasoline to biomass, already finished. Next year we do again for the coal boiler for three. So that summary of the result, key performance indicators, and also a summary of 2025. Next will be the business segment review by Danaidej. Please go.
Let's now look at the movement in the fourth quarter. Starting from the three macro indicators on the left-hand side, we can see that the PMI, which is for the three big markets, all of them are above 50. It means that there will continue to be some expansion in the global economy. If you look at that, ASEAN and U.S. seem to be having a PMI level that is higher than China. China was still roughly about 50, but still over 50. In terms of the export value, we can see that in ASEAN economies, Thailand, and Vietnam, and Indonesia, we can continue to see some growth in some of the markets. In some markets, we can see a little bit of slightly lower in the Q4, so it means there's a mixed result here.
Overall, the ASEAN economy was still quite resilient in term of the export as an export market or export countries. In term of CPI, also the trend in some countries are going up, and that's a result of more policies that is supportive of economic growth. That would be driving also consumer spending. So that's some indicators of the good news. Next, we look at how the demand is doing in our major countries that we operate. First, we look at the Q1 queue. We can see that it's based in Vietnam and Indonesia. There was a higher growth in term of Q1 queue.
That's because in these two economies, there's also the stock building and also preparation, and purchase, and manufacturing in support of the upcoming festive seasons, which will occur in the first quarter of this year, which is in Vietnam, it's a Tết holidays, and in Indonesia as Hari Raya. In Q4 of last year, all the manufacturing and all the business activity take place for the entire quarter. Unlike in Thailand and in Philippines, where we see the drop in these manufacturing activities and the purchasing toward the end of December. The December, as usual, toward the end of December, the market was weaker. In these two countries, we see a little bit of the stable or reduced demand.
But when we look at year-on-year figures, we can see that in all of the countries that we operate, most of them has a year-on-year growth in term of demand. That's propelled by the domestic demand growth for the pre-holiday stocking, the high season for tourism, as well as the continued growth in the export of key products, such as food related, frozen food, processed food, for example. So these were driving the markets in term of the growth in Q1 and year-on-year. Some consumer discretionary segments like apparel, footwear, electronics, was still doing also quite okay. With this, it's related to the packaging paper demand, which will continue to grow, especially in Vietnam and Indonesia. Also in the fourth quarter, the demand from China for packaging paper is also increased in term of the importation.
The production of some of the local mill in China cannot get the raw materials from the recycled pulp situation, so they purchase more of the import. That shows in the statistics, in which a very high level. It has actually been increasing from July onward in term of the monthly importation from China. In November and December, the figures were also higher compared to the previous months. For food service, there is a healthy demand for the QSR segment in Asia and ASEAN, although a little bit slow in the Thai market. Anyway, we face some competition from producers in China and in Indonesia, for the European market. For the pulp segment, the price remains soft, both for dissolving pulp price. For the chemical pulps or the short fiber pulp, the price gradually increased a little bit in the last part of last quarter.
With that, we look at our consolidated financials for the fourth quarter. Our revenue stays at THB 30.17 billion for the fourth quarter. That is a drop of 3% year-on-year. The volume from year-on-year is actually up, but the price factor is the key one that is resulting in the lower revenue. In term of Q-on-Q, it is relatively stable, slightly down. Volume also up about 4%, but also price was also down for the same period. That is why the revenue Q-on-Q was relatively the same. Looking into EBITDA of the fourth quarter, it reached THB 4.5 billion . That is up both year-on-year and Q-on-Q. Core EBITDA was THB 3.7 billion, and that is down from the last quarter, mainly from price factor, also foreign exchange, and also from additional costs in term of direct selling expenses.
Also from the core EBITDA to net EBITDA, there was also a gain from MYPAK acquisition Indonesia. That is also reflected in our net profit, which is THB 1.2 billion for the fourth quarter, up both year-on-year and Q-on-Q. That includes the extra one-time profit net of all the extra one-time expenses of about THB 400 million in this figure. The cost factor is also improving. That is part of the contribution. Despite the lower price, we have also lower cost, so that means that offset the impact on our margin as well. Next, I want to go into my business unit. Integrated Packaging Business revenue was THB 23.64 billion . In term of year-on-year, it was down by about 2%, and that is mainly from the selling price. Because in term of volume, the volume actually went up.
In term of Q-on-Q for the IPB, revenue increased slightly, in 1%. Polymer packaging revenue increased, and that is a result of increase in production of consumption products for the pre-holiday stocking and for export. Medical and labware also rebound in Europe in the fourth quarter compared to the summer holidays in the third quarter. For fiber packaging, Q-on-Q, revenue slightly dropped, and that is partially as a result of some of the flood-related issues in southern Thailand, also in the north. But the government stimulus policy also helped a little bit here. Vietnam and Indonesia were still quite healthy, because of the preparation for the upcoming Tết and Hari Raya in the fourth quarter. For packaging paper, sale volume increased about 4%, but price also decreased by about 3%. So EBITDA for Integrated Packaging Business is at THB 4.385 billion . That is an increase both year-on-year and Q-on-Q.
Mainly, the price was down year-on-year, but cost also down. We also have this extra gain from the MYPAK M&A. Q-on-Q was also similar issues. From IPB, we go into more detail in the Fajar, Indonesia operation. If you look at the bar chart, in term of the volume, we has an increase in term of Q-on-Q of the volume, both for the domestic and the export. Domestic also grow, export also grow. Together, the volume grow about 16% Q-on-Q and 7% year-on-year. That's a very healthy volume that we have. However, in term of price, year-on-year is quite stable, but in term of Q-on-Q, we drop slightly in term of the IDR term by about 2%. This is the combination, the quarterly drop of about 2% from IDR 6 million to about IDR 5.9 per ton is because of the low price in October.
The price has been a bit lower until the bottom in about October and November and start to rebound already. At that point, the lowest was about IDR 5,800 per kg. That was equivalent to about $345 per ton. But the latest figures in December, as we closed December, was up to about IDR 6,100. That's about 6% increase or about $20 per ton increase. This increasing price trend actually continues into January into Q1. We expect that in the first quarter, if we take the December latest price of IDR 6,100, that's a healthy increase from the figures in the fourth quarter. This is the price factor that actually affect our EBITDA. If you look at the EBITDA on the bottom chart, our EBITDA from operation is slightly negative, about IDR 37 billion, and that's due to this average price of the quarter.
This was lower than the last quarter. But we also have a one-time energy supply rearrangement figures of 64 billion. This recondition or change in condition of the contract of the supply of energy, what we saw in the cost saving, starting from January 2026 onward. That would help save about more than THB 35 million, let's say, about THB 35 million or so per month, and this one-time expense that we charge in December was about THB 120 million. So within three to four months, that would cover, and the benefit will be full scale after that. It means in 2026, we would have cost saving in term of the better energy cost by about THB 400 million per year. That's quite significant.
Other things that we did in here was also the integration of MYPAK, which is for the box plant that we will help the integration with Fajar increase from 18% to 26%. That was already in place since December, since we acquired MYPAK 100%. Another point is in term of the customer. In addition to our own captive market of box business, we also increased our portion of what's called alliance customer or alliance partner to 44% from 34%. This one, the customer who use primarily our Fajar products, and we have to grow our wallet share with them. We increase this portion to totally together with the captive part would be about 70% of our sales. It means the true free market has been reduced to about 30%.
So that is the three things we did in term of vertical integration with the new box pan, MYPAK. The increase in term of our additional alliance and also the significant cost saving from the energy contract rearrangement. So that is for Fajar. Next would be on the Fibrous Business. The revenue from fibers is THB 5.7 billion. That is about 2% year-on-year down, mainly also from price factor. For Q-on-Q, it was also 5% reduced Q-on-Q. The revenue from food service and paper and pulp, actually, all of them dropped. For the food service, it is mainly because of a little bit more subdued environment in Thailand in term of the festivities with the countries going through the mourning period, as well as some of the natural disaster like flooding. But the QSR in other markets was still quite resilient.
For specialty and paper, volume was up, but the price was down, so the total revenue was down. For pulp, there was a price drop, both in term of dissolving pulp and also in term of the short fiber pulp. But short fiber pulp price rebound toward the end of the quarter. So with this, the EBITDA for Fibrous Business was THB 300 million. So that is down both year-on-year and Q-on-Q, mainly from price factor as well as the strong or the appreciation of the Thai baht. If you look at the proportion of the Fibrous Business volume, about 63% was for export. So the movement, the strengthening or the appreciation of THB has more pronounced effect for the Fibrous Business than for the Integrated Packaging Business. This has been affecting them both year-on-year and Q-on-Q. Next will be on the financial review.
We start with the reconciliation of our core profit and net profit. The core profit stand at THB 821 million. We have extra item in term of gain from the M&A transaction Indonesia of MYPAK, about THB 1. 72 Billion. But that was offset by one-time expenses, such as the company restructuring, which about THB 183 million.
That is for the improvement of our workforce efficiency. For others of THB 482 million, that was the reversal of the deferred tax asset, mainly in Fajar Indah Jaya in Indonesia, THB 380 million, and also the one-time energy rearrangement that we talked about at Fajar, about THB 94 million. So that together means all the net gain from one time would be about THB 400 million in the fourth quarter. In term of our balance sheet, our net debt remain at about THB 52 billion, so that is slight reduction from the year earlier.
The debt- to- equity is still lower now, 0.96x. Net debt- to- EBITDA is about 3x , and this is a reduction from last year as well as reduction from the peak in the middle of last year, about 3.7x . This reduction is due to better EBITDA for the year. In term of CapEx, last year was THB 9.7 billion. That is close to our estimate of THB 10 billion. About THB 5.4 billiion is related to growth CapEx, which is MYPAK, and also the acquisition of additional shares in Howa together. For this year, 2026, our budget for the CapEx is also about THB 10 billion. That will be for growth CapEx of THB 5.5billion for the new expansion and also M&A, and the remaining will be for the maintenance, efficiency, and cost saving.
Our overall cost of debt was also reduced to 3.7% from 4.2%, and that is because of the reduction in this rate across the board and across all operation, not just in Thailand. Today, the board of directors has approved the proposal to the shareholders for the payout of the THB 0.6 per share of dividend. That is equivalent to about 63% payout with a dividend yield of about 3%. That will be proposed for the AGM upcoming in March. THB 0.25 already paid as interim dividend, so the remaining final payment of THB 0.35 will be paid in April, if approved by the shareholders. That is a recap of the fourth quarter as well as the financial position. Next will be for Wichan.
Thank you very much, Danai. Next will be the business update. May I start with the sustainable packaging. Look back the emerging regulation that has been changing, especially in the abroad, but Thai still are lacking on that. The update is that in Vietnam, Vina Kraft Paper, which our subsidiary register and approve as a recycler, meaning we have ability to extend that producer to brand owner. The quota of brand owner, which is our customer, is 11,000 tons last year. We also get the cost. Even this cost is not much, but we see that this is value we create for our customer. On top of that, last year, 2025, our GoPak in U.K. also registration as the approved recycler. Last year, they did good job at 7,000 tons, and we get the fee from recycler also.
These two country and these two company play a vital role to put up SCGP to be a sustainable company. Just want to update JDA with the Origin Materials. The joint development agreement between SCGP and Origin have been finished. The technology there, we can convert, we can produce PET from the eucalyptus wood chip. However, the return on investment is not paid back due to the price of the PET, very cheap right now. So we stop. We said that we are no go for this project. Unless in the future, the price of the PET getting higher, and then we invest on the convert the eucalyptus wood chip to be a PET, making money or return on investment. On the Thailand side, we see that the circular operation in each sub-business unit start from the Fibrous Business, pulp and paper.
Now we are using 99% of renewable material, which is the product 100% recyclabilities. In term of the fiber-based, box, paper, like that, so 93% of the recycled material content and the product also 100% recyclability. These two fibers and the fiber-based packaging play a vital role in terms of the recycle. Last but not least, for the polymer-based. Now we start to use the 4% of the recycled material, which we plan to improve more. However, the recyclability of the polymer-based packaging reach up to 85%, which are on the roadmap to improve and increase the recyclability. In term of the collaboration with the customer and the leadership position. First thing I would like to say that last year was one of the highest year that we do customer collaboration a lot.
We establish and we end up with the 15 memorandum of understanding. SCGP does not like to call MOU. Each MOU we call, for example, memorandum of reducing greenhouse gas, memorandum of development of new products, things like that. This is we end up last year with 15 collaboration. This is a good movement that doing the business in the future, collaboration with the customer especially, or those project will create the stickiness to the both sides. Second initiative. Last year we got so-called Green Label testing service for the Thailand Environment Institute. This one, we are the first one who can test the Green Label, as the government agency. This is a very good movement. Also, last year we get the AAA sustainable stock rating from SET ESG rating for the three consecutive years.
We also received the SET Award of Honor for the best innovative company for four consecutive years. Meaning every year we have the best innovative product and project to show to the SCG Thailand. We also received the best sustainability award from the SET Award also. That very important and make our asset leadership. On top of that, last year, three of us, IR, CFO, and myself and CEO, received the IAA Awards for the listed company 2025. This award create very proud of us. In the past year, 2022 to 2023, 2024, some we got outstanding and best, but last year, 2025, is only year that three of us got the best IR, best CFO and best CEO. Thank you for voting thus for us.
Looking into the future, we see that the key performance indicator, we call that this will do moving toward the transformative transformation. We have been doing a lot of transformation of the doing the business, especially for people on a system structure and the business model also. We set out four KPI, almost the same as last year, but the figure has been changed. Profitability, we set up our EBITDA this year, THB 18.3 billion , and EBITDA margin to be more than 14%. It look a bit not so high compared to last year. However, we see a lot of upside for this figure, especially for the Indonesia business. In term of the efficiency, we also expect the cost reduction this year, THB 600 million . Also we do the expansion project.
We expect to have the expansion project this year, three project, with the consumer packaging improved from 46%- 49%. Also we will increase the alternative fuel from 38%- 40%, which the project under modification, we convert three coal boiler to use the biomass. That all the update from everything in the first quarter of last year and the whole year of 20 25. I think today we already cover with the summarize and the performance of last year. If you have any question, you can add more or contact the IR team. We would like to thank for the participant today for join the virtual conference today, and looking forward to seeing you again in the next quarter. Today we would like to thank and "Thank you." Thank you very much.