SCG announces Q1/2018 Operating Results, which is similar to the previous quarter. The company reveals its focus of utilizing digital technology to develop innovations and deliver a full range of products and service solutions that address the needs of customers across ASEAN, thus achieving sustainable growth.
Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed the Company’s unaudited Operating Results for Q1/2018, with registering Revenue from Sales of 118,250 MB, an increase of 4% q-o-q and 2% y-o-y. Meanwhile, Profit for the Period reached 12,406 MB, a slight decrease of 1% q-o-q and 29% y-o-y, mainly from lower performances of the subsidiaries and the associates in the Chemical Business, attributed to the stronger Thai Baht and higher costs of raw materials. Moreover, last year’s better performance could also be attributed to the non-recurring gain from the sale of investments.
The Q1/2018 Performance of SCG’s Businesses Outside of Thailand.
SCG’s Revenue from Sales in ASEAN registered 27,014 MB, representing 23% of SCG’S total Revenue from Sales, which is an increase of 4% y-o-y. Furthermore, 17% of total Revenue from Sales or 20,075 MB, was from other regions outside of ASEAN.
The total assets of SCG, as of March 31, 2018, amounted to 584,251 MB, while 24% represented assets in ASEAN.
The Q1/2018 operating results by business units are as follows.
- Chemical Business recorded Q1/2018 Revenue from Sales of 52,867 MB, an increase of 2% q-o-q but a decrease of 3% y-o-y. Profit for the Period totaled 8,135 MB, a drop of 14% q-o-q and 38% y-o-y, due to the stronger Thai Baht and higher costs of raw materials, resulting in the decrease in performance of the subsidiaries and the associates.
- Cement-Building Materials Business recorded Q1/2018 Revenue from Sales of 46,461 MB, a rise of 7% q-o-q and 4% y-o-y. Profit for the Period amounted to 2,484 MB, an increase of 138% q-o-q and 10% y-o-y, attributed to the improved seasonal market performance and the growth of SCG’s business expansion in ASEAN.
- Packaging Business recorded Q1/2018 Revenue from Sales of 21,981 MB, a growth of 3% q-o-q and 11% y-o-y. Profit for Period stood at 1,512 MB, a rise of 24% q-o-q, due to the steady market growth conditions and SCG’s acquisitions, but earnings fell 10% y-o-y as there was non-recurring gain from the sale of investments.
Mr. Roongrote said “Despite the impact of unfavorable factors including intense competition in both domestic and region, rising costs of raw materials, and strengthening Thai Baht which affected the business, SCG’s Q1/2018 Operating Results were comparable to the previous quarter. This could be attributable to the company’s commitment in providing better living for stakeholders as our promise “Passion for Better”, which is the driving force to initiate momentum towards digital technology for innovations and delivers full ranging solutions to meet latent needs of customers across ASEAN.”
SCG’s recent digital technology efforts includes the launch of the “Home Buddy application”, an online channel which supports customers on home building consultation and finding suitable contractors or materials for home building or repairs. This application is also integrated with other digital platforms, for example the “SCG Online Store” and digital payment solution such as “SCG Wallet” to make shopping or making payments for products easier and more convenient. These efforts also extend to “using Satellites Imagery mapping software in roof installation design” and the introduction of “a robot to care for the elderly” by SCG Eldercare Solution. These technological breakthroughs together with other home-related innovations will be showcased at the “Architect Expo 2018” to be held on May 1-6, 2018 at IMPACT Muang Thong Thani, Bangkok.
Other innovative solutions delivered by SCG include Thailand’s first “Floating Solar Solution” and “Total Packaging Solutions Provider” whereby providers offer a complete range of services from design to production and collection of packaging waste for recycling. On top of this is “SCG Express” which has a plan to expand its one-stop-service points to retail customers at over 100 gas stations and also plans for nationwide coverage by the middle of 2018.
In addition, SCG continues to develop High Value Added (HVA) products and services with the focus on enhanced collaboration with customers and leading institutions. For Q1/2018, sales of HVA products and services totaled 45,844 MB, an increase of 5% y-o-y, accounting for 39% of its total Revenue from Sales. The Company has invested over 1,206 MB in R&D and innovations, representing 1% of total Revenue from Sales.
As part of its efforts to expand business in ASEAN, SCG has increased its stakes in Binh Minh Plastics Joint Stock Company, a leading manufacturer and supplier of PVC pipes and joints in Southern Vietnam to 50.9%. SCG also established a trading company through the acquisition of 50% stakes in PT Nusantara Polymer Solutions in Indonesia to supply high value added plastic resins. The move is considered a major step in expanding the high value added products production base to drive growth in ASEAN. In Vientiane, the Lao People’s Democratic Republic, SCG set up SCG Roofing Center, the first overseas full-service roofing, walling, and ceiling center to cater to the growing market and open up business opportunities among AEC member countries” said Mr. Roongrote.