Bangkok: July 26, 2017 – SCG reports H1/2017 Operating Results, showing similar profit y-o-y due to good performance from the first quarter. SCG reveals that investment strategies for a sustainable ASEAN is according to plan with approval for the first petrochemicals complex in Vietnam with world class technology. Moreover, driving of innovation has a significant progress with recent attempt to connect collaborations from research institutions, science and technology entrepreneurs, and startups from worldwide. This emphasizes SCG’s dedication to innovate products and services for tomorrow in faster achieving market and consumer needs.
Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company’s unreviewed Operating Results for Q2/2017, with registered Revenue from Sales of 72,550 Billion VND (US$ 3,173 Million), remaining flat y-o-y. In consequence, Profit for the Period reached 8,835 Billion VND (US$ 386 Million), a decrease of 17% y-o-y and dropped 24% q-o-q, mainly due to the inventory loss, higher raw materials cost, strong competition and softness in the domestic market in Cement–Building Materials business. SCG’s Profit for the first half of 2017 registered 20,425 Billion VND (US$ 883 Million), an increase of 4% y-o-y, attributed to the strong Q1/17 performance while Revenue from Sales increased 3% y-o-y by increasing to 150,062 Billion VND (US$ 6,485 Million) . Export revenue in the first half of 2017 accounted for 27% of SCG’s consolidated Revenue from Sales, representing an increase of 2% y-o-y to 40,459 Billion VND (USD 1,748 Million), mainly from exporting to markets in China and South Asia.
In ASEAN (ex-Thailand), SCG’s Q2/17 Revenue from Sales registered 17,387 Billion VND (US$ 760 Million), which is a 3% y-o-y growth and amounts to 24% of SCG’s total Revenue from Sales. This includes sales from both local operation in each ASEAN market and imports from the Thai operations.
SCG’s Revenue from Sales in H1/2017 registered 34,667 Billion VND (US$ 1,498 Million), which is 5% y-o-y growth and amounts to 24% of SCG’s total Revenue from Sales.
As of 30 June 2017, SCG had total assets 368,249 Billion VND (US$ 16,254 Million), of which 25% or 91,855 Billion VND (US$ 4,054 Million) are located in ASEAN (ex-Thailand) region.
In the Vietnamese market, SCG’s Q2/17 Revenue from Sales amounted to 6,613 Billion VND (US$ 289 Million), which includes sales from both operation in the country and imports from the Thai operations. This represents an increase of 17% y-o-y mainly from packaging business.
For the period of H1/17, SCG’s Vietnamese market reported Revenue from Sales of 12,300 Billion VND (US$ 532 Million), which is a 17% increase y-o-y.
Mr. Roongrote mentions that “SCG continues to expand business in ASEAN. Recently, SCG.” has approved investments in the first petrochemicals complex in Vietnam, Long Son Petrochemicals Company Limited (LSP), at 71% stakes and investments of 5,400 Million USD with Vietnam Oil and Gas Group (PetroVietnam). The project consists of state of the art technology to support Vietnam to reduce import and meet demand of Vietnamese. The production accommodates a flexible feedstock with Olefin production capacity of 1.6 million tons per year. The project is scheduled for a four and half years of construction and shall begin commercial operation in the first half of 202.”
For the first half of 2017, SCG’s Revenue from Sales of High Value Added (HVA) products and services is at 57,527 Billion VND (US$ 2,486 Million), increasing 5% from the previous year, and accounting for 38% of the total Revenue from Sales. Recently, SCG has unveiled its “Open Innovation Center” which enhances science and technology collaborations from research institutions and corporates around the world. This is an attempt to combine ideas and introduce innovative products and services to the market as well as to unlock the ability to tackle consumer needs with speed and precision. Also, SCG seeks to invest in startups with the recent launch of the AddVentures, a Corporate Venture Capital or CVC. AddVentures highlights investments in digital technology and innovation to support digital transformation. Investments are considered both as direct investments and venture capital. Moreover, an internal startup program has been established for SCG employees to learn from startup business models. Additionally, SCG plans to invest in innovation development at around 3,333 Billion VND (US$ 144 Million) in 2017.”
SCG, one of the leading conglomerates in the ASEAN region, comprises three core businesses: SCG Cement-Building Materials, SCG Chemicals, and SCG Packaging. With more than 200 companies under its umbrella and approximately 57,000 employees, SCG creates and distributes innovative products and services that respond to the current and future needs of consumers.
SCG began its business operations in Vietnam since 1992 with trading business and gradually expanded investment in diversified businesses in the cement-building materials, chemicals, and packaging industries.
Today, with total of 23 companies across Vietnam driven by approximately 8,300 employees, SCG offers variety of premium products and services to markets. Available products in cement-building materials include, concrete roof, fiber cement board, fiber-cement wood substitute products for floor and ceiling, white cement, ready-mixed concrete under the brand ‘SCG’ and wall and floor ceramic tiles under the brand ‘COTTO & Prime’ and sanitary ware & fittings, bathroom fixtures under the brand ‘COTTO’. In the packaging business, available products are reading & writing paper under the brand ‘IDEA’ and corrugated containers, kraft paper and flexible packaging. In the chemicals business, available products are downstream chemicals products such as PE&PP, XLPE, PVC resin and compound, etc. Besides, SCG also has a building materials showroom in Hanoi to welcome customers to experience SCG products and services.