ASEAN KEY DESTINATIONS
SCG announces Operating Results of Q1 of 2016, pursues the development of innovation for the future, and continues to invest in ASEAN
Bangkok: 27 April 2016 – SCG reports Q1/ 2016 Operating Results, showing a 23% increase 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 committed 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
109,998 MB, an increase of 4% q-o-q, and a flat y-o-y. In consequence, Profit for the Period reached 13,619 MB, a gain of 19% q-o-q. Sales growth on a y-o-y basis was
relatively flat at 109,998 MB, while Profit for the Period grew 23% y-o-y, following strong performances in the chemicals and packaging businesses. Export revenue in Q1/16
accounted for 27% of SCG’s total Revenue from Sales, representing a decrease of 8% y-o-y to 29,570 MB.
The performances of SCG’s businesses in ASEAN outside of Thailand in Q1/2016 The combined Q1/2016 Revenue from Sales of SCG’s ASEAN production facilities and
Thai exports to ASEAN countries amounted to 24,396 MB, representing 23% of SCG’s consolidated Revenue from Sales, a slight increase 1% y-o-y. Sales Revenue from
SCG’s production bases in ASEAN is at 12,586 MB, which accounted for 12% of the total Revenue from Sales, and a 21% increase y-o-y. Meanwhile, Revenue from Sales of
exports to ASEAN countries is at 11,810 MB, accounting to 11% of the total Revenue from Sales, a 14% decrease y-o-y. As of 31 March 2016, SCG’s total assets in ASEAN
excluding Thailand stands at 110,491 MB or 21% of the company’s total assets.
The total assets of SCG as of March 31, 2016 amounted to 520,603 MB.
The Q1/2016 operating results by business units are as follows:
SCG Cement - Building Materials recorded a Q1/2016 Revenue from Sales of 45,880 MB, decreasing of 3% y-o-y. The business unit registered Profit for the period of 3,290
MB, a decrease of 8% y-o-y as a result of increased depreciation and market competition.
SCG Chemicals recorded Q1/2016 Revenue from Sales of 47,810 MB, a flat y-o-y. The business unit registered Profit for the period of 9,111 MB, increasing 21% q-o-q and a
85% increase y-o-y as a result of improved equity contribution from associated companies and lower feedstock price.
SCG Packaging recorded Q1/2016 Revenue from Sales of 18,847 MB, increasing 2% q-o-q, and increasing 10% y-o-y owing to higher sales volume and cost improvement.
The business unit registered Profit for the period of 1,255 MB, increasing 7% q-o-q and increasing 43% y-o-y as a result of financial cost management and performance of the
Mr. Roongrote Rangsiyopash, President and CEO of SCG, 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 development (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 42,262 MB, a 3% increase y-o-y, accounting for 39% of the Revenue from Sales. For the period,
SCG had invested more than 900 MB 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”
In addition to that, SCG has developed the capabilities of the R&D team to create new product and service innovations that address the diverse needs of today’s and
tomorrow’s consumers, such as SCG Packaging’s dissolving pulp for use in the melamine compound and textile industries. The innovative product is well-accepted in the
global market. SCG Chemicals’ innovative plastic pellets for the production of PE100 high-pressure pipes for use in irrigation systems, the mining industry and natural gas
industry have also been certified for their international quality standards by global authorities.
Living innovations, such as SCG Eldercare Solution, Precast Concrete System - Decorative Series, which help cope with shortages of manual labor, and special formula
cement innovation made by the 3D printing technology, which is now currently on display at Architect’16. The SCG-CHULA Engineering Research Center has also been
established to pursue R&D for innovations in the petrochemicals, building materials and packaging industries.
“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
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below