SCG posts strong operating results in 2021 despite inflation and COVID-19

February 11, 2022 | 09:00
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SCG announced strong operating performance in 2021 despite inflationary pressures, rising energy, and raw materials costs, as well as the pandemic.
SCG posts strong operating results in 2021 despite inflation and COVID-19
SCG posted strong operating results in 2021 despite inflation and COVID-19

Roongrote Rangsiyopash, president and CEO of SCG disclosed, "The company's unaudited operating results for 2021 registered revenue from sales of $16.57 billion, an increase of 33 per cent on-year, owing primarily to improved performance of all businesses, particularly the prices and sales volume of chemical products. Profit for the year totalled $1.47 billion, an increase of 38 per cent on-year, thanks to better performance of Chemicals Business."

SCG's revenue from sales of high value-added products and services was $5.71 billion, or 34 per cent of total revenue from sales. Additionally, new product development and service solutions accounted for 15 per cent and 5 per cent of total revenue from sales, respectively.

In the fourth quarter, revenue from sales totalled $4.27 billion, an increase of 8 per cent on-quarter due to improved performance of all businesses. Meanwhile, profit for the period stood at $249 million.

Besides this, SCG's revenue from operations outside of Thailand, including export sales from Thailand, registered $7.59 billion or 46 per cent of total revenue from sales, 44 per cent higher than the previous year.

For SCG’s operation in ASEAN (except Thailand), the revenue from sales in the fourth quarter recorded a 62 per cent increase on-year, amounting to $1.24 billion, and 29 per cent of SCG’s total revenue from sales. This includes sales from both local operations in each ASEAN market and imports from the Thai operations. As of December 31, the total assets of SCG amounted to $25.79 billion, while the total assets of SCG in ASEAN (except Thailand) were $11.69 billion, 45 per cent of SCG’s total consolidated assets.

In the given quarter, SCG’s total assets in Vietnam were $6.44 billion, an increase of 32 per cent on-year, mainly in the chemicals business from Long Son Petrochemicals. The company reported fourth-quarter revenue from sales at $440 million, up 46 per cent on-year, mainly from export sales from Thailand to Vietnam.

For 2021, SCG in Vietnam reported revenue from sales of $1.53 billion, which is a 32 per cent increase on-year mainly from sales from new acquisitions of Packaging, VKPC operation and Chemicals operation as well as export sales from Thailand and ASEAN to Vietnam.

Roongrote said, "During 2021, SCG has steadily been accelerating business transformation. As a result, it has maintained satisfactory growth over the past year by aligning the business with three megatrends: incorporating ESG (environmental, social, and governance) into business operations, leveraging digital transformation to meet customer needs, as well as developing innovative solutions to meet wellness trends and improve the quality of life.

Specifically, SCG has adopted ESG 4 Plus, which includes four approaches: set net-zero, go green, reduce inequality, and embrace collaboration with fairness and transparency as a standard developmental framework for its global business practices.

SCG has committed an initial investment of $2,000 by 2030 to improve the production process and develop low-carbon businesses to achieve net-zero greenhouse gas emissions by 2050. In 2021, greenhouse gas emissions were lowered by 1.3 million tons.

SCG will also speed up its digital transformation efforts. One initiative is digital twin technology, a virtual agent that aids in the evaluation and efficient modification of production patterns. Meanwhile, CPAC Green Solution adopts digital technology to optimise construction efficiency. The corporate also develops digital platforms to manage the largest distribution network, including Prompt Plus, a building material e-commerce platform, and Rak Mao, a building material e-procurement platform.

Furthermore, SCG has developed several innovative solutions such as medical-grade plastic isolation capsules for air transportation; soluble laundry bags to reduce the risk of infection for patient's clothing; Smart Building Solution, an innovative building management solution that uses IoT to improve air quality and save energy; among many others.

As purchasing power begins to recover, market forces drive up the prices of goods and services. Thus, business strategies in each industry must be appropriately optimised, have the financial discipline to cope with rising interest rates, and create innovation to meet the ever-changing customer demands, on top of the business's adoption of digital technology.

“SCG has devised business strategies to address inflation and build long-term growth in each of its businesses," said Roongrote.

By Thanh Van

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