Bangkok: 27 April 2016 – SCG reports Q1/ 2016 Operating Results, showing a 23% in-crease in profit due to better performance of the chemicals business. Revenue from Sales of HVA products and services for the period has also increased to 39%. The company is com-mitted to continuing its investments in the ASEAN region.
Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company’s unaudited Operating Results for Q1/2016, with registered Revenue from Sales of 68,749 Billion VND (US$ 3,084 Million), an increase of 4% q-o-q, and a flat y-o-y. In consequence, Profit for the Period reached 8,512 Billion VND (US$ 382 Million), a gain of 19% q-o-q. Sales growth on a y-o-y basis was relatively flat at 68,749 Billion VND (US$ 3,084 Million), while Profit for the Period grew 23% y-o-y, following strong performances in the chemicals and packaging busi-nesses. Export revenue in Q1/16 accounted for 27% of SCG’s total Revenue from Sales, repre-senting a decrease of 8% y-o-y to 18,481 Billion VND (US$ 829 Million).
Mr. Roongrote disclosed that “SCG’s continued dedication to the development of High Value Added (HVA) products throughout the years, both from SCG’s own research and devel-opment (R&D) team and through collaborations with Thailand’s and the world’s leading research institutes. In Q1/ 2016, SCG’s Revenue from Sales of HVA products and services was at 26,414 Billion VND (US$ 1,185 Million), a 3% increase y-o-y, accounting for 39% of the Revenue from Sales. For the period, SCG had invested more than 563 Billion VND (US$ 25 Million) in R&D, accounting for 0.8% of the Revenue from Sales. For 2016, SCG has allocated a total investment budget for R&D accounting for 1% of the Revenue from Sales.
“For the ASEAN region, where economic growth continues at a steady pace, SCG’s in-vestment plans are on track, with the cement plants in Indonesia and Cambodia now in commer-cial operation. Meanwhile, the cement plants in Myanmar and Lao are expected to commence operation in Q3 of 2016 and mid-2017, respectively. These investments are integral in supporting SCG’s business growth within the ASEAN region. The company will continue to expand its regional investments, emphasizing on forging partnerships with established players in the indus-tries in order to develop and grow together” said Mr. Roongrote.
For SCG’s operation in ASEAN (ex-Thailand), the Revenue from Sales in Q1/2016 rec-orded 21% growth y-o-y, amounted to 7,866 Billion VND (US$ 353 Million), which is 11% of SCG’s total Revenue from Sales.
As of 31 March 2016, total assets of SCG amounted to 325,376 Billion VND (US$ 14,777 Million), while the total assets of SCG in ASEAN (ex-Thailand) amounted to 69,057 Billion VND (US$ 3,136 Million), which is 21% of SCG’s total consolidated assets.
Based on Q1/2016 report, SCG in Vietnam owned 14,854 Billion VND (US$ 675 Mil-lion) worth of total asset, an increase of 2% y-o-y. The company reported Q1/2016 Revenue from Sales at 3,336 Billion VND (US$ 150 Million), a 17% increase y-o-y mainly from packaging and ceramic business. On the occasion to mark the 40th anniversary of diplomatic relations between Thailand and Vietnam, SCG took part in the “Thai Village” event by feathering a representative booth to showcase its business operation in Vietnam for over 20 years, and to highlight social responsibil-ity projects that contribute to the overall development of relationship between the two countries. Moreover, SCG has organized a friendly football match between Becamex Binh Duong and SCG Muangthong United under project ‘SCG Muangthong United ASEAN tour 2016’ at Thong Nhat Stadium, Ho Chi Minh City.
SCG, one of the leading conglomerates in the ASEAN region, comprises three core busi-nesses: 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 dis-tributes innovative products and services that respond to the current and future needs of consum-ers.
SCG began its business operations in Vietnam since 1992 with trading business and gradually expanded investment in diversified businesses in the cement-building materials, chem-icals, and packaging industries.
Today, with total of 22 companies across Vietnam driven by approximately 6,900 em-ployees, 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 substi-tute 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 flex-ible packaging. In the chemicals business, available products are downstream chemicals products. Besides, SCG also has a building materials showroom in Hanoi to welcome customers to experience SCG products and services.