Bangkok--1 Aug--SCG
SCG announces the operating performance for the second quarter of fiscal year 2013 showing higher profit and sales from growths of the domestic cement demand and the recovery of the chemicals margins.
With its mission to invest in domestic and overseas markets, SCG has allocated budget of 2,150 MB to increase capacity and develop HVA product for cement-building materials business, and restructure investment plan to drive business in the region.
The Group has confidence in the strength and the sustainable growth of the ASEAN region
Mr. Kan Trakulhoon, President & CEO of SCG, disclosed the unreviewed consolidated financial statements of SCG for the second quarter of fiscal year 2013 (Q2/2013), which showed Revenue from Sales of 106,541 MB, an increase of 6% y-o-y on higher sales volume of domestic cement and chemicals products. The Profit for the Period registered 9,924 MB, an increase of 132% y-o-y, following the recovery of the chemicals margins, growths of the domestic cement demand, and dividend contribution from SCG Investment.
On a q-o-q basis, in Q2/2013, Revenue from Sales decreased 3%, while the Profit for the Period grew 13% q-o-q, benefitting from the dividend of SCG Investment.
For the first half of 2013 (H1/2013), SCG recorded Revenue from Sales of 215,980 MB, an increase of 6% y-o-y from higher sales volume in most business units. Profit for the Period increased 83% y-o-y to 18,720 MB, as the domestic demand for cement was robust, and the chemicals margins recovered from the deep trough of H1/2012.
For the operating results of SCG in ASEAN (excluding Thailand), the Revenue from Sales in H1/2013 amounted to 17,788 MB, a growth of 22% y-o-y, and representing 8% of SCG’s total Revenue from Sales. The Revenue from Sales in Q2/2013 amounted to 9,506 MB, a growth of 12% y-o-y, and representing 9% of SCG’s total Revenue from Sales. As of June 30, 2013, SCG’s total assets in ASEAN amount to 64,388 MB, or 15% of SCG’s total assets.
The total assets of SCG as of June 30, 2013 amounted to 420,011 MB.
The operating results of SCG’s major businesses for Q2/2013 as follows:
SCG Chemicals: In Q2/2013, SCG Chemicals recorded Revenue from Sales of 52,359 MB, dropped slightly by 2% q-o-q, attributed to lower product prices, but improved 6% y-o-y from increased olefins sales volume. Profit for the Period was flat q-o-q at 2,640 MB.
SCG Paper: In Q2/2013, SCG Paper recorded Revenue from Sales of 14,340 MB, down 5% q-o-q and 1% y-o-y, mainly due to weak domestic demand in both the Packaging and the Fibrous (Printing & Writing) chains. Profit for the quarter registered 1,032 MB, down 23% q-o-q and 6% y-o-y.
SCG Cement-Building Materials: In Q2/2013, SCG Cement-Building Materials recorded Revenue from Sales increased 9% y-o-y to 42,127 MB, the result of higher domestic cement sales, and the consolidation of Prime Group (Vietnamese ceramics), and decreased 3% q-o-q, due to the seasonal effect. Profit for the Period registered 3,389 MB, an increase of 15% y-o-y, but down 16% q-o-q.
The Board of Directors has approved a H1/2013 interim dividend payment of 5.50 Bt/Share, amounting to 6,600 MB, and is payable on August 29, 2013 with record date on August 14, 2013 and book closing date on August 15, 2013.
Mr. Kan added that, “Recently, the Board of Directors of SCG has approved a total investment of 2,150 MB to increase the production capacity in two projects of SCG Cement-Building Materials. First, the company will invest towards the 400,000 sq. m. per year capacity expansion in the production of MG Stone-Slabs, which are used primarily for counter-top and floor/wall applications. The plant will be located in the provinces of Saraburi, with the expected start-up in mid-2014. This project is aimed at driving sales of HVA products as MG Stone-Slabs are materials that have beautiful pattern similar to that of rare stones but very strong and easy to keep and adapted to various uses. Second, SCG invests to increase equity in the roofing business. The company buys back all shares from Monier Group Services GmbH (Monier) to adjust the investment structure of roofing business in Thailand, Philippines, Cambodia, Vietnam and Laos. This investment is expected to be completed in December, 2013.”
“Even though several parties are concerned with an anticipating slowdown of the ASEAN economic growth in the second half of this year, SCG is confident that, in the long run, ASEAN will remain attractive foreign investment location with sustainable strength and growth so that the company continues to enhance its capabilities and offerings within ASEAN, following the vision of becoming an ASEAN sustainable business leader. Recently, SCG’s cement plant construction project in Myanmar has been approved by Myanmar Government. It is in the process of submitting the investment budget plan for approval by the Board of Directors. This project will meet an increasing demand of cement in Myanmar and at the same time raise SCG’s cement and building materials leadership profile in ASEAN,” he said.