SCG unveils satisfactory operating results in 2017

January 26, 2018 | 10:40
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The group’s satisfactory 2017 operating results came on the back of its strategy of being promptly adaptable to changes in the market and consumer needs, as it prepares to continue to expand its services.
SCG president and CEO Roongrote Rangsiyopash announces the group’s business results in 2017

Roongrote Rangsiyopash, president and CEO of leading Thai conglomerate SCG, has just disclosed the group’s unaudited operating results for the fiscal year of 2017, with registered revenue from sales increasing 6 per cent year-on-year to VND300.6 trillion ($13.2 billion) from higher chemicals prices, while profit for the period was nearly VND36.7 trillion ($1.6 billion), a decrease of 2 per cent year-on-year, mainly from strong competition in the cement-building materials business.

Despite risks associated with the costs of raw materials and energy, the strengthening Thai Baht, and stiffening regional competition this year, SCG focuses on collaborations with digital startups and equipping employees to be adaptable to change, as well as an expansion of its service and logistics business to retain its ability to compete. Meanwhile, its investments in the ASEAN are progressing according to plan.

In the Vietnamese market, SCG’s sales revenue in 2017’s fourth quarter amounted to VND6.5 trillion ($297 million), which includes sales from both operations in the country and imports from Thai operations.

This represents an increase of 25 per cent year-on-year, mainly from paper packaging and building materials products. The 2017 sales revenue was recorded at VND25.7 trillion ($1.13 billion).

According to the latest movement in Vietnam, SCG granted scholarships to 114 excellent ex-scholars who had been successfully enrolled in universities as business and engineering freshmen under the SCG Sharing the Dream Scholarship programme.

Moreover, SCG officially handed over a custom-made SCG Sharing the Dream Playground for Long Son 2 Primary School in Long Son Commune in the southern province of Ba Ria-Vung Tau, the location of SCG’s flagship Long Son Petrochemical Complex project.

In the building materials market, construction grows hand-in-hand with the Vietnamese economy, especially in the housing and detached house segments.

Recently, SCG Concrete Roof Vietnam—a subsidiary of SCG—was awarded as one of Vietnam’s Top 20 Trademarks, and its product ‘Elabana' Profile was selected as Vietnam’s Top 10 Golden Products in 2017.

These activities manifest SCG’s relentless efforts throughout the years to continue improving product quality and promote better living standards to answer the needs of Vietnamese consumers.

In the packaging business, the demand for packaging has continuously increased, aligning with the Vietnamese economy and higher consumption, which benefits SCG’s packaging business.

“SCG’s 2017 operating results are considered satisfactory, despite the heightened domestic and regional competition, rising costs of raw materials, and the strengthening Thai Baht which affected the business. However, 2018 brings certain risks such as the rising costs of raw materials for chemicals and packaging, higher energy costs, strengthening Thai Baht, as well as an intense competition in the region, especially in the cement industry,” said Roongrote.

“To mitigate and prepare for these risks, SCG will continue to expand its services and utilise automation and robotics technology to help maximise business efficiency. In addition, the company has established the Reskill Training Programme to develop our employees’ capabilities so that they are able to navigate the changes and serve the needs of customers as well as expand the business internationally in the future,” he added.

SCG has also invested in startups that focus on digital and logistics businesses to allow customers to have access to SCG Logistics’ delivery trucks via a digital platform, offering a more convenient and faster service. There are more than 7,000 trucks throughout the ASEAN region.

In addition, SCG also continues to focus on high value added products and services to quickly respond to the needs of consumers. In the past year, the company has invested more than VND2.78 trillion ($123 million) in research and innovation, accounting for approximately 0.9 per cent of its total sales revenue.

Sales of high value added products in 2017 totalled at VND117 trillion ($5.17 billion), approximately 39 per cent of the total sales revenue.

Meanwhile, collaborations with digital startups are progressing well, with more than 40 on-going projects with potential for commercialisation. The company also sees business opportunities to connect with startup networks in the US, Israel, and China.

The cement and building materials businesses in the ASEAN are progressing according to plan, serving rising demands in the regional market. Currently SCG operates cement plants in six countries, with a total production capacity of 33.6 million tonnes per year, including the operations in Thailand.

“SCG has also acquired a 68.3 per cent stake in Interpress Printers, a leading manufacturer of fast food packaging in Malaysia. The acquisition will benefit SCG’s development of fast food packaging to cover the fast-growing consumer demand in the ASEAN,” said Roongrote.

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SCG reaffirms determination to develop $5.4 billion Long Son petrochemical complex

By By Anh Duc

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