Siam Cement Group (SCG) revealed its 2018 operating results that show overall profit decease from the Chemicals Business

Siam Cement Group (SCG) recently revealed their 2018 Operating Results, they show an overall profit decrease from the Chemicals Business while the Packaging Business exhibited consistent and robust growth and Cement - Building Materials Business enjoyed favorable prospects. SCG is pushing forward with two key strategies in 2019, focusing on financial stability and long-term growth management by delivering integrated solutions and new business models that harness digital and deep technologies, and collaborate with leading startups in various regions and research and development institutes worldwide. SCG is also seeking new opportunities to meet consumer needs throughout the region.

Mr. Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company’s unaudited Operating Results for FY2018, with registered Revenue from Sales increase 6% y-o-y to 21,264 billion MMK. Profit for the year registered 1,989 billion MMK, a decrease of 19% y-o-y from global economic uncertainties, primarily driven by trade war, volatile oil market and a strengthening Thai baht, in which affected the overall performance of SCG.

In 2018, SCG’s Revenue from Sales of High Value-Added Products & Services (HVA) reached 8,221 billion MMK, representing an increase of 5% y-o-y and accounting for 39% of total Revenue from Sales. Spending on Innovation Research & Development totaled 208 million MMK or 1% of total Revenue from Sales.

SCG’s Revenue from Sales of Q4/2018 dropped by 4% q-o-q to 5,663 billion MMK from the lower chemicals product prices but increased 3% y-o-y from increased chemicals sales volumes, and the domestic growth in the Cement - Building Materials Business. Profit for the Period rose 11% to 506 billion MMK q-o-q, attributed mainly from seasonal dividend contribution from the investment business in Q4/2018 but decreased 17% y-o-y, mainly due to the decline in performance from the Chemicals business. SCG’s Revenue from export Sales registered 5,818 MMK or 27% of total Revenue from Sales, a rise of 6% y-o-y.

In ASEAN excluding Thailand the Q4/2018 Revenue from Sales recorded 9% growth y-o-y, amounted to 1,453 billion, which is 26% of SCG’s total Revenue from Sales. The Revenue from Sales in 2018 recorded 11% growth y-o-y, amounted to 5,245 billion MMK. This includes sales from both local operation in each ASEAN market and imports from the Thai operations.

As of 31 December 2018, total assets of SCG amounted to 28,221 billion MMK, while the total assets of SCG in ASEAN excluding Thailand amounted to 7,831 billion MMK which is 26% of SCG’s total consolidated assets.

As for the Myanmar market, SCG’s Q4/18 Revenue from Sales amounted to 92 billion. The 2018 Revenue from Sales recorded 367 billion MMK, which represents an increase of 9% y-o-y mainly from cement-building materials business.

Mr. Roongrote said, “In 2019, SCG will continue to focus on two key strategies. One is Stability which the company has maintained continuously and acted promptly to cope with recent global economic volatility, in addition, the financial position remains robust, with Net Debt to EBITDA ratio of 1.7 times, while most loans are in Thai Baht with over 90% of them being fixed rate loans. The cash flow is stable due to the healthy performance of core businesses. Another strategy is Long-term Growth Management. In addition to heightening the development of innovative high value-added products and services to raise the living standard and build a sustainable business growth, this year, SCG will focus on delivering solutions to more adequately fulfill customer needs.”

(Myanmar Business Today: https://www.mmbiztoday.com/articles/reveals-2018-operating-results )

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