Siam Cement posts B6.84 bln net profit in Q2

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Siam Cement Group (SCG), Thailand’s biggest industrial conglomerate with over 300 billion baht of total assets, on Wednesday reported a net profit of 6.84 billion baht, an increase of 32 percent from the previous quarter but a fall of five percent from the same period last year.

According to SCG president and chief executive officer Kan Trakulhoon, the quarterly net profit of the group, Siam Cement Plc and subsidiaries, came from the net sales of 56.88 billion baht during the April-June period, an increase of only about three percent from the previous quarter but a decrease of 29 percent from the same period last year.

The fall in net sales in the second quarter of this year, when compared with the same period of last year, was due to lower prices of chemicals and paper product. However, he said, the 32-percent jump in net profit in the second quarter of this year when compared with the previous quarter was from better performance in the company’s chemicals, paper and building materials businesses.

During the first half of this year, SCG recorded the net sales of 112.09 billion baht, a decrease of 29 percent from the same period last year due to lower prices of core products, while the net profit dropped 16 percent from the same period last year to almost 12.03 billion baht.
Among the group’s major businesses, SCG Chemicals during the second quarter recorded the net sales of 23.39 billion baht, an increase of eight percent from the first quarter, and the net profit of 3.27 billion baht, an increased of 32 percent from the first quarter. For the first half of this year, the net profit decreased 23 percent from that of the same period last year, due to decreased sales price and the global slowdown.

SCG Paper meanwhile recorded the net sales of 10.56 billion baht in the second quarter, an increase of nine percent from the first quarter, resulting in the net profit of 639 million baht which was an increase of about 1.67 times from that of the first quarter. However, for the first half of this year, the net profit of SCG Paper decreased 38 percent from that of the same period last year, due to squeezed margins.

SCG Cement during the first quarter recorded the net sales of 11 billion baht, a decrease of 11 percent from the first quarter, due to lower cement prices and sales volume, and the net profit of 1.55 billion baht, a drop of 21 percent from that of the previous quarter. However, the net profit in the first half of this year increased 10 percent as a result of savings from the investments in the various energy savings programmes.

Kan said, “Our key strategy to emphasise on high value added products and services (HVA) has shown outstanding result. HVA sales have so far been about 26 percent of total net sales, compared with 19 percent last year.”

Among five business units, SCG Building Materials showed highest sales proportion on HVA, he said, adding that SGC’s outstanding HVA products and services include SmartWood of SCG Building Materials, Idea Green paper of SCG Paper, PE 100 and Active Flow of SCG Chemicals, Tiger Mortar cement of SCG Cement, SCG Experience and Green Logistics of SCG Distribution.

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