By Madelaine B. Miraflor Reporter
Southeast Asia business conglomerate Siam Cement Group (SCG) made a record profit growth of 47 percent to P12.02 billion in the first quarter of 2013, on the back of its recent business restructuring and acquisition of a ceramics business in Vietnam.
According to the company, it exceeded P12.02 billion or $295-million in profits from aggressive growth in all of its business units and resumption of equity income from associates.
SCG revenues improved by 6 percent year-on-year or to P149.55 billion ($3.67 billion), attributable to higher sales volume in the paper and cement-building materials businesses.
“The company’s recent strategic business restructuring—whereby SCG’s cement, building materials, and distribution businesses were consolidated into one market-facing entity, now referred to as SCG Cement-Building Materials—and SCG’s latest investment in Vietnam, the acquisition of an 85-percent stake in Prime Group Joint Stock Co., were one of the several significant steps we took to drive SCG’s business expansion in the Asean region,” said SCG President and Chief Executive Officer Kan Trakulhoon.
Asean is the Association of Southeast Asian Nations.
Trakulhoon also said that SCG will invest more invest more in its cement-building materials business, because of potential market growth.
In the previous year, its business unit sales amounted to P211.17 billion ($5.19 billion), comprising 36 percent of total consolidated sales revenue of SCG, while profits from this business reached P17.94 billion ($ 440 million), which is half of the total consolidated profit for 2012.
Meanwhile, SCG operations in the Phillipines reported P1.67 billion
($41 million) in revenue for a 59 percent growth year-on-year, assisted by the consolidation of its ceramic tile manufacturing company and better performance of Mariwasa Siam Ceramics (MSC) in SCG’s cement-building materials businesses.
Earlier this year, SCG said that it is eyeing further growth from its business in the Philippines, as the country contributed more than P1 billion out of the P6 billion in revenues the company generated in 2012.