BANGKOK: January 25, 2017 – SCG announces Operating Results for FY2016, showing profit increase 24% y-o-y, thanks to the performance of the chemicals business and energy costs. SCG believes that in 2017, Thailand’s economy shows an upturn trend while the ASEAN market continues to prosper. SCG further advances in innovation and technology to adjust efficiency and business operations to uplift competitive capabilities and sustainably tackle challenges in the future.
Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company’s unaudited Operating Results for 2016, with registered Revenue from Sales decrease 4% y-o-y to 273,188 Billion VND (US$ 12,362 Million), Profit for the Period reached 36,183 Billion VND (US$ 1,637 Million), an increase of 24% y-o-y, attributed mainly from the continuous performance of the chemicals business. In addition, export Revenue, which accounted for 27% of SCG’s total Revenue from Sales, y-o-y to 72,612 Billion VND (US$ 3,286 Million).
On a quarterly basis, SCG’s Q4/2016 Revenue from Sales decreased 6% y-o-y and 5% q-o-q to 62,258 Billion VND (US$ 2,779 Million), primarily reflecting the lower chemicals prices. However, Profit for the Period registered an increase of 9% y-o-y at 7,798 Billion VND (US$ 348 Million) from better performance of associated companies, decreased 11% q-o-q, partly due to lower performance of the chemicals business, following its 40-day maintenance turn-around of the first cracker complex (ROC) in Thailand and decreased building materials prices following the marketing situation.
For the 2016 performances of SCG’s businesses in ASEAN, the consolidated 2016 Revenue from Sales of SCG’s ASEAN production facilities and Thai exports to ASEAN countries amounted to 63,012 Billion VND (US$ 2,851 Million), representing 23% of SCG’s consolidated Revenue from Sales, 2% decrease y-o-y as a result of the strong competition and decreased product prices. As of 31 December 2016, SCG’s total assets in ASEAN excluding Thailand stands at 78,784 Billion VND (US$ 3,519 Million) or 23% of the company’s total assets and the total assets of SCG as of December 31, 2016 amounted to 337,305 Billion VND (US$ 15,067 Million).
Mr. Roongrote said “In ASEAN, we continue to implement strategies coupled with solidifying the SCG brand. SCG believes that this market holds high prospects with dynamic growth from the government’s investment policies as well as domestic consumption and trade among ASEAN countries. As for SCG’s ASEAN investments, they are according to the plan with the cement plant in Myanmar holding a production capacity of 1.8 million tons per year and Vietnam’s 2nd kraft paper plant at 243,000 tons per year amounting to a total of 489,000 tons per year. Both plants have begun commercial production in early 2017 while the cement plant in Laos PDR is in the phase for its trial run. Moreover, SCG has prepared for future challenges in this year such as the chemicals’ raw materials costs and rising energy prices. Also, an increasing number of competitors have entered the cement and building materials as well as the packaging business.
For SCG’s operation in ASEAN, the Revenue from Sales in Q’4/2016 recorded 1% growth y-o-y, amounted to 8,470 Billion VND (US$ 383 Million), which is 14% of SCG’s total Revenue from Sales. The Revenue from Sales in H’2/2016 recorded 3% growth y-o-y, amounted to 16,675 Billion VND (US$ 760 Million).
As of 31 December 2016, total assets of SCG amounted to 337,305 Billion VND (US$ 15,067 Million), while the total assets of SCG in ASEAN amounted to 78,784 Billion VND (US$ 3,519 Million), which is 23% of SCG’s total consolidated assets.
Based on Q’4/2016 report, SCG in Vietnam owned 21,113 Billion VND (US$ 943 Million) worth of total asset, an increase of 10% y-o-y. The company reported Q’4/2016 Revenue from Sales at 3,871 Billion VND (US$ 175 Million), a -1% decrease y-o-y. For H’2/2016 Revenue from Sales at 7,638 Billion VND (US$ 348 Million).
For the latest movement in Vietnam, SCG Packaging started up the new paper machine no.2 of Vina Kraft Paper. The success reaffirms SCG Packaging’s strong leadership in high-growth Vietnam market as the largest high-quality packaging paper manufacturer. The new machine allows SCG Packaging to increase its capacity from 243,000 tons per annum to 489,000 tons per annum to its portfolio through the newly-installed capacity and gains from efficiency optimization, which is more than doubled its existing capacity in Vietnam.
Regarding the latest activities, SCG announced sponsorship for Hanoi FC in 2017-2018 as the main sponsor which logo shall be incorporated on the team’s jerseys as well as other outfits. This is the initial effort of SCG to support for the development of professional football in Vietnam. Furthermore, as part of the plan, SCG will exchange knowledge of the football club management knowledge with Hanoi FC, and also co-operate to bring Kick & Share activities to help the youngsters in Vietnam get the foundation knowledge in football.
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 52,500 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 22 companies across Vietnam driven by approximately 6,900 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.