Bangkok: 1 November 2017 – SCG reports Operating Results of the first 9 months of 2017, showing a slight decrease in Profit compared to the same period of the previous year. The conglomerate announces its strategic focus is to connect collaborations from around the world to create innovations as well as investing in start-ups through world-class venture capital, utilizing technology to strengthen its business in response to Digital Transformation.
Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company’s unaudited Operating Results for Q3/2017, with registered Revenue from Sales increase 7% y-o-y to 74,952 Billion VND (US$ 3,367 Million), and an increase of 3% q-o-q, as a result of better sales from all business units. In consequence, Profit for the Period reached 7,891 Billion VND (US$ 355 Million), a decrease of 16% y-o-y, since there was a 1,200 Billion VND (US$ 53 Million) in deferred tax assets in Q3/16, in addition to softer chemicals margins and a dropped of 11% q-o-q, mainly due to lower the seasonal dividend from investments in previous quarter.
SCG’s Profit for the first 9 months of 2017 registered 28,316 Billion VND (US$ 1,239 Million), a decrease of 3% y-o-y, from strong competition and softness in the Thailand’s market in Cement–Building Materials business, while Revenue from Sales increased 4% y-o-y to 225,014 Billion VND (US$ 9,849 Million), mostly reflecting the higher chemicals prices. Export revenue accounted for 27% of SCG’s consolidated Revenue from Sales, representing an increase of 5% y-o-y to 60,749 Billion VND (US$ 2,659 Million).
In ASEAN (ex-Thailand), SCG’s Q3/17 Revenue from Sales registered 17,963 Billion VND (US$ 807 Million), which is a 10% 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.
As of 30 September 2017, SCG had total assets 375,209 Billion VND (US$ 16,866 Million), of which 25% or 95,048 Billion VND (US$ 4,273 Million) are located in ASEAN (ex-Thailand) region.
In the Vietnamese market, SCG’s Q3/17 Revenue from Sales amounted to 6,885 Billion VND (US$ 309 Million), which represents an increase of 32% y-o-y mainly from packaging and cement-building materials businesses. For the first 9 months of 2017, SCG recorded Revenue from Sales in Vietnam at 19,185 Billion VND (US$ 840 Million).
For the latest movement in Vietnam, SCG Concrete Roof Vietnam was recognized as the First Concrete Roof Tile Manufacturer in Vietnam receiving 3 major certifications of international standards including ISO 9001 for Business Management, ISO 14001 for Environmental Management, and OHSAS 18001 for Occupational Health and Safety. This accomplishment is align to SCG’s direction aiming at improving operation standard to comply with international management system and brings a better living for Vietnamese people.
Mr. Roongrote said “For the first 9 months of 2017, SCG’s Revenue from Sales of High Value Added (HVA) products and services is at 87,127 Billion VND (US$ 3,814 Million), increasing 7% from the previous year, and accounting for 39% of the total Revenue from Sales. The Company invested more than 1,600 Billion VND (US$ 70 Million), or 0.7% of the Revenue from Sales, towards research and development (R&D) during the period. SCG supports the creation of innovations by connecting R&D collaborations from around the world through the Open Innovation Center to co-create and co-develop product and service innovations that can more quickly and better serve the demands of customers. To date, more than 6,500 people have visited the center, with more than 30 projects in the pipeline for further collaborations for research and development. SCG is also pushing ahead to work with start-up networks around the world through investments by AddVentures, the company’s corporate venture capital (CVC). SCG recently invested in Funds of Funds through its world-class venture capital to promote sustainable growth of start-up ecosystems across the region.”
Moreover, the company continues to drive its business strategy in response to Digital Transformation and Industry 4.0 by utilizing Internet of Things (IoT) to continually maximize business efficiency. For example, technology is applied to use on detecting the amount of cement in silos, and use to connect logistic networks, and automatically check inventories of its customers. Robotics is also utilized in its production and maintenance processes, encouraging for a more convenient, faster, and safer operation. The technology can usefully replace humans in risky areas and helps to lessen Thailand’s dependency on importing technologies.”
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 21 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.
