Bangkok: Asian cement and chemical producer SCG recorded a 23-percent increase in first-quarter profit year-on-year. The company attributed the rise to better performance of the chemicals business. It also said in a statement that it is committed to continue investing in the Asean region.
Revenue from sales of HVA (high value-added) products and services for the period has also increased to 39 percent of registered revenue from sales.
Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company’s unaudited operating results for Q1 2016, showing registered revenue from sales of P145.712 billion ($3.084 billion) growing 4 percent quarter-on-quarter though remaining flat year-on-year.
In consequence, profit for the period reached P18.041 billion ($382 million), a gain of 19 percent quarter-on-quarter, and 23 percent year-on-year, following strong performances in the chemicals and packaging businesses. Sales growth on a year-on-year basis was relatively flat at P145.712 billion ($3.084 billion). Export revenue in Q1 accounted for 27 percent of SCG’s total Revenue from Sales, representing a decrease of 8 percent year-on-year to P39.171 billion ($829 million).
Roongrote disclosed that SCG continues to be dedicated to the development of High Value Added (HVA) products throughout the years, both from SCG’s own research and development (R&D) team and through collaborations with Thailand’s and the world’s leading research institutes. In Q1, SCG’s revenue from sales of HVA products and services was at P55.984 billion ($1.185 billion), a 3 percent increase year-on-year, accounting for 39 percent of the revenue from sales.
For the period, SCG had invested more than P1.192 billion ($25 million) in R&D, accounting for 0.8 percent of the Revenue from Sales. For 2016, SCG has allocated a total investment budget for R&D accounting for 1 percent of the Revenue from Sales.
“For the Asean region, where economic growth continues at a steady pace, SCG’s investment plans are on track, with the cement plants in Indonesia and Cambodia now in commercial 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 industries in order to develop and grow together” said Roongrote.
SCG in Asean
For SCG’s operation in Asean (excluding Thailand), the revenue from sales in Q1 recorded 21 percent growth year-on-year, amounting to P16.672 billion ($353 million), which is 11 percent of SCG’s total revenue from sales.
As of 31 March 2016, total assets of SCG stood at P677.868 billion ($14.777 billion), while its total assets in Asean (excluding Thailand) amounted to P143.868 billion ($3.136 billion), which is 21 percent of SCG’s total consolidated assets.
SCG in the Philippines
Based on the Q1 2016 report, SCG in the Philippines owned P9.526 billion ($208 million) worth of total assets, a decrease of 2 percent year-on-year. The company reported Q1 revenue from sales at P1.978 billion ($42 million), a 2 percent increase year-on-year mainly from packaging business.
The company showcased its latest technology and products at the WorldBEX 2016 under a concept “Unbounded Fiber Cement” to introduce applications and functions of quality products such as SCG smart board that comes with Extrusion Technology to create wide range of styles and designs, and SCG fiber cement that comes with the beautiful prints created by Digital 3D Printing Technology.