SCG announces 7% increase in revenue

SCG announces 7% increase in revenue
25 October 2018

Thailand’s Siam Cement Group (SCG) has announced a seven per cent YoY increase in revenue to THB361bn (US$10.95bn) for the first nine months of 2018. However, profits fell 19 per cent to THB34.3bn mainly due to reduced performance in the chemicals business and asset impairments in the third quarter.

The company’s revenue from exports advanced seven per cent to THB97.9bn in the 9M18, accounting for 27 per cent of total revenue.

"The year-to-date contraction was as result of rising raw material and energy costs, a global trade slowdown and asset impairment," said Roongrote Rangsiyopash, president and chief executive, SCG.
In the 3Q18 revenue rose nine per cent to THB123bn, while profit decreased 20 per cent to THB9.47bn.

"The contraction for this quarter was mainly from asset impairments charges of THB1.67bn in accordance with accounting standards and higher naphtha costs, which surged with global oil prices. SCG would have recorded THB11.14bn for the period without this impairment," said Mr Rangsiyopash.

The cement and building materials segment recorded revenue growth of four per cent to THB137.22bn in the 9M18, on the back of regional market expansion. Profit in the period was down 18 per cent YoY to THB4.43bn.

Following the results, the company has restructured its investment plan. It now intends to spend approximately THB40-50bn this year and THB50-60bn in 2019. Part of the company’s focus will now be on broadening export opportunities, managing energy costs, utilising digital technology and developing high value-added products and services.

Published under Cement News