Bangkok, 26 October 2016 – SCG reports Q3/2016 and the first 9 months of 2016 Operating Results show increased profit from the chemicals business, thanks to the cyclical upturn of the petrochemical industry. Demand for building materials in the ASEAN region also continues to rise steadily.
Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company’s unreviewed Operating Results for Q3/2016, with registered Revenue from Sales decrease 5% to 65,598,125 Million VND (US$ 3,012 Million), on lower chemicals prices and softer cement volume and prices, and a decreased 4% q-o-q on seasonal effects. In consequence, Profit for the Period reached 8,806,875 Million VND (US$ 404 Million), an increase of 57% y-o-y, attributed mainly from the continues performance of the chemicals business, which also includes the approximate 1,125,000 Million VND (US$ 52 Million) deferred tax assets and a decreased of 12% q-o-q, due to the seasonal effect in the cement business with lowered its performance. SCG’s Profit for the first 9 months of 2016 registered 27,253,750 Million VND (US$ 1,237 Million), an increase of 28% y-o-y, driven primarily by the chemicals business, while Revenue from Sales dropped 3% y-o-y to 202,393,125 Million VND (US$ 9,183 Million), on domestic cement demand softness and lower chemicals prices. Export revenue accounted for 27% of SCG’s consolidated Revenue from Sales, representing a decrease of 11% y-o-y to 54,263,125 Million VND (US$ 2,462 Million). Mr. Roongrote Rangsiyopash, said: “The chemicals business continues to improve as a result of the cyclical upturn of the petrochemical industry. However, the domestic cement market has not shown significant signs of recovery due to more rain fall compared to the previous year. This is also coupled with the fact that government infrastructure projects are in the process of being carried out, while investment by the private sector has slowed down. However, demand for cement in the ASEAN region continues to rise, due to the expansion and growth of the construction industry. The Company’s investment plans abroad are on course. The cement plant in Myanmar has begun a trial run and is expected to begin production in the fourth quarter of 2016. The cement plant in Laos is expected to begin commercial operation in the first quarter of 2017.
For the first nine months of 2016, SCG’s Revenue from Sales of High Value Added (HVA) products and services is at 76,386,875 Million VND (US$ 3,466 Million), close to the same period of the previous year, and accounting for 38% of the total Revenue from Sales. The Company invested more than 2,005,000 million VND (US$ 91 Million), or 1% of the Revenue from Sales, towards research and development (R&D) during the period. SCG will continue to invest in R&D to innovate products and services that cater to the lifestyles of consumers across ASEAN.
SCG in ASEAN (ex-Thailand)
For SCG’s operation in ASEAN (ex-Thailand), the Revenue from Sales in Q3/2016 recorded 5% growth y-o-y, amounted to 8,205,389 Million VND (US$ 377 Million), which is 15% of SCG’s total Revenue from Sales.
As of 30 September 2016, total assets of SCG amounted to 330,247,094 Million VND (US$ 15,225 Million), while the total assets of SCG in ASEAN (ex-Thailand) amounted to 75,937,066 Million VND (US$ 3,501 Million), which is 23% of SCG’s total consolidated assets.
SCG in Vietnam
Based on Q3/2016 report, SCG in Vietnam owned 19,559,785 Million VND (US$ 902 Million) worth of total asset, an increase of 5% y-o-y. The company reported Q3/2016 Revenue from Sales at 3,766,885 Million VND (US$ 173 Million), a 2% decrease y-o-y. For 9M/2016 Revenue from Sales at 10,979,163 Million VND (US$ 498 Million).
For the latest movement, SCG has organized many activities to develop the potential of young generations and education, for example, SCG International Internship program that invite 15 excellent students training at SCG Headquarter for 1 month. Moreover, SCG also provided the leadership training program for 50 outstanding students via intensive workshop as SCG Young Leadership program. Furthermore, SCG joined the Job Fair at Bach Khoa University providing job opportunity for university to work at SCG.
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.
For more information, please visit www.scg.co.th/vnhttp://www.scg.co.th/vn