Thailand’s Siam Cement Group (SCG) has released its results for the first quarter of 2014. Kan Trakulhoon, President and CEO of SCG, announced the consolidated financial results for both SCG and its subsidiaries, along with the group’s upcoming investment plans. Highlights are provided below.
SCG 1Q14 results
- The group’s profit was 5% higher than that recorded in 4Q13, driven by seasonal growth in cement and the recovery of its paper business. However, an FX gain in 1Q13 led profit to decline by 5% y/y.
- Revenue from sales increased by 11% y/y and by 17% q/q.
- For SCG’s businesses in the ASEAN markets outside of Thailand, sales revenue improved by 24% y/y, accounting for 9% of the group’s total sales revenue.
- Revenue from exports grew by 12% y/y, and SCG expects that exports will continue to improve.
SCG Cement-Building Materials
Sales revenue rose by 10% y/y in 1Q14. This has been attributed to the consolidation of the Prime Group, a leading Vietnamese ceramic tiles manufacturer, as well as the sanitary ware and fittings business. Profit was 2% higher than in 1Q13.
SCG Chemicals’ sales revenue increased by 14% y/y but profit dropped by 6% y/y as a result of FX gain in 1Q13.
Depreciation and interest expenses meant that profit fell by 6% y/y in the first quarter of 2014. However, higher sales volumes in the packaging and fibrous chain helped sales revenue to grow by 6% y/y.
Investments and joint ventures
- The group plans to set up a 1.8 million tpa cement plant in Khammouane, Laos. The plant will comprise modern, environmentally friendly production equipment. It is expected to begin operating in 2Q17.
- In April 2014, a joint venture was formed between SCG Cement-Building Materials and Florim Ceramiche S.p.A, a leading ceramic firm. The venture will invest in a production facility in Bologna, Italy, which will manufacture high-end ceramics under the COTTO brand. The facility is due to start-up in early 2015. SCG Cement-Building Materials will hold a 33% stake in the venture.
- SCG has approved an investment in SCG Paper. The machines and appliances at Thai Paper Co. Ltd will be upgraded to manufacture glassine paper at a rate of 60 000 tpa.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/asia-pacific-rim/01052014/scg_releases_1q14_results_and_announces_laos_cement_plant_plans_125/