SCG announces operating results for second quarter and first half
SCG reports the operating results for the first half of the year, showing similar profit year-on-year due to good performance from the first quarter.
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Moreover, the company made significant headway with innovation with the recent success in connecting collaborations from research institutions, science and technology entrepreneurs, and startups worldwide. This emphasises SCG’s dedication to innovative products and services and faster achieving market and consumer needs.
Roongrote Rangsiyopash, president and CEO of SCG, disclosed the company’s unreviewed operating results for the second quarter, with registered revenue from sales of VND72.55 trillion ($3.173 billion), remaining flat year-on-year.
In consequence, profit for the period reached VND8.835 trillion ($386 million), a decrease of 17 per cent year-on-year and a drop of 24 per cent quarter-on-quarter, mainly due to inventory loss, higher raw materials costs, strong competition, and softness in the domestic cement–building materials business.
SCG’s profit for the first half of 2017 registered VND20.425 trillion ($883 million), an increase of 4 per cent year-on-year, attributed to the strong first quarter performance, while revenue from sales increased 3 per cent year-on-year to VND150.062 trillion ($6.485 billion).
Export revenue in the first half of 2017 accounted for 27 per cent of SCG’s consolidated revenue from sales, representing an increase of 2 per cent year-on-year to VND40.459 trillion ($1.748 billion), mainly from exporting to markets in China and South Asia.
In the ASEAN (excluding Thailand), SCG’s second quarter revenue from sales was registered at VND17.387 trillion ($760 million), which is a 3 per cent year-on-year growth and amounts to 24 per cent of SCG’s total revenue from sales. This includes sales from both local operations in each ASEAN market and imports from Thai operations.
SCG’s revenue from sales in the first half registered VND34.667 trillion ($1.498 billion), which is 5 per cent year-on-year growth and amounts to 24 per cent of SCG’s total revenue from sales.
As of June 30, 2017, SCG’s total assets amounted to VND368.249 trillion ($16.254 million), of which 25 per cent or VND91.855 trillion ($4.054 billion) are located in the ASEAN (with the exception of Thailand).
In the Vietnamese market, SCG’s second quarter revenue from sales amounted to VND6.613 trillion ($289 million), which includes sales from both operations in the country and imports from Thai operations. This represents an increase of 17 per cent year-on-year, mainly from the packaging business.
For the first half of 2017, SCG’s Vietnamese market reported revenue from sales of VND12.3 trillion ($532 million), which is a 17 per cent increase year-on-year.
For the first half of 2017, SCG’s revenue from sales of high value added (HVA) products and services was VND57.527 trillion ($2.486 billion), increasing 5 per cent from the previous year and accounting for 38 per cent of the total revenue from sales.
Recently, SCG has unveiled its “Open Innovation Centre” which enhances science and technology collaboration with research institutions and corporates around the world. This is an attempt to combine ideas and introduce innovative products and services to the market as well as to unlock the ability to tackle consumer demand with speed and precision.
Also, SCG seeks to invest in startups with the recent launch of AddVentures, a corporate venture capital fund. AddVentures highlights investments in digital technology and innovation to support digital transformation. Investments are considered both as direct investments and venture capital.
Moreover, an internal startup programme has been established for SCG employees to learn from startup business models. Additionally, SCG plans to invest in innovation development at around VND3.333 trillion ($144 million) in 2017.
SCG, one of the leading conglomerates in the ASEAN, comprises of three core businesses: SCG Cement-Building Materials, SCG Chemicals, and SCG Packaging. With more than 200 companies under its umbrella and approximately 57,000 employees, SCG creates and distributes innovative products and services that respond to the current and future needs of consumers.
SCG began its business operations in Vietnam in 1992 with a trading business and gradually expanded investment in diversified operations in the cement-building materials, chemicals, and packaging industries.
Today, with a total of 23 companies across Vietnam driven by approximately 8,300 employees, SCG offers a variety of premium products and services. Available products in cement-building materials include concrete roof, fibre-cement board, fibre-cement wood substitute products for floor and ceiling, white cement, ready-mixed concrete under the brand ‘SCG,’ and wall and floor ceramic tiles under the brand ‘COTTO & Prime’ and sanitary ware and fittings, bathroom fixtures under the brand ‘COTTO’.
In the packaging business, available products are reading and writing paper under the brand ‘IDEA’ and corrugated containers, kraft paper, and flexible packaging.
In the chemicals business, available products are downstream chemical products, such as PE and PP, XLPE, PVC resin and compound, etc. Besides, SCG also has a building materials showroom in Hanoi to welcome customers to experience SCG products and services.
