SCG announces operating results for Q1/2022
SCG announces operating results for Q1/2022
SCG reported its operating results for Q1/2022, demonstrating a solid performance with strategies to deal with soaring energy and raw materials costs.
SCG’s unreviewed operating results for Q1/2022 registered revenue from sales of 108.9 trillion VND (US$4.6 billion), an increase of 7% q-o-q, due to higher sales across all businesses. Meanwhile, profit for the period reached 6.3 trillion VND (US$268 million), an increase of 6% q-o-q, largely owing to the improved business performance of cement-building materials business and higher non-chemical equity income (agricultural machinery business).
On a y-o-y basis, revenue from sales increased 25% from higher sales revenue across all businesses mainly from higher product prices in-line with the market. However, profit for the period fell by 41%, mainly due to rising feedstock costs from chemicals business in Q1/2022, along with the fact that the chemicals industry had better performance in Q1/2021 compared to normal business operations from winter freeze which caused supply shortage in the United States.
Roongrote Rangsiyopash, President and CEO of SCG |
In Q1/2022, SCG's revenue from sales of high value added products and services (HVA) reached 36.7 trillion VND (US$1.5 billion), accounting for 34% of total revenue from sales. Moreover, new products development (NPD) and service solution amounted to 17% and 5% of total revenue from sales.
Besides, SCG's revenue from outside of Thailand together with exports from Thailand was 44% of total revenue from sales or amounted to 44.4 trillion VND (US$2 billion) in Q1/2022, an increase of 30% y-o-y.
For SCG’s operation in ASEAN (ex-Thailand), the revenue from sales in Q1/2022 recorded a 30% increase y-o-y, amounting to 29 trillion VND (US$ 1.3 billion), and 28% of SCG’s total revenue from sales. This includes sales from both local operations in each ASEAN market and imports from the Thai operations.
SCG in Vietnam consistently pursues the sustainability framework of ESG (Environmental, Social and Governance) in driving sustainable business growth by contributing to the local communities where it operates. In Q1/2022 SCG was listed in the Top 50 Green Growth Foreign Invested Enterprises (FIEs) in Vietnam at the 21st Golden Dragon Award. Moreover, an outdoor gym at Binh Duong was completed to enhance well-being while SCG with its subsidiary, PRIME Group, provided hand-washing equipment to schools in Hai Duong and Vinh Phuc to help curb COVID-19. Also, PRIME carried out renovations and supports for homes in the community.
Mr. Roongrote Rangsiyopash, President and CEO of SCG, said, "SCG has remained strong both in Thailand and overseas. To respond proactively in the fast-paced manner and tap into global markets, SCG is accelerating four strategies: proactive business management; timely delivery of innovations; growth strategy-driven investments; and acceleration of ESG (Environmental, Social and Governance) to strengthen business immunity for long-term growth.”
SCG, one of the leading conglomerates in the ASEAN region, comprises three core businesses: Cement-Building Materials, Chemicals, and 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 businesses in the cement-building materials, chemicals, and packaging.
