SCG boosts first-half 2025 performance with strategic restructuring

SCG boosts first-half 2025 performance with strategic restructuring

SCG strengthened its first-half 2025 performance through decisive restructuring and a focused shift away from unprofitable ventures, boosting overall business efficiency.

On August 11, SCG announced continued improvement in its operating results for the first half of 2025, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) reaching VND23.7 trillion ($904 million). This growth was supported by ongoing adjustments across all business units, including investment portfolio restructuring and the discontinuation of unprofitable businesses.

Thammasak Sethaudom, president and CEO of SCG, said, "SCG has consistently implemented measures to strengthen its financial position since mid-2024. This has resulted in a stronger EBITDA for the first half of 2025, which stands at $904 million, an increase of 21 per cent from the second half of 2024. This improvement is attributed to investment portfolio adjustments, the discontinuation of unprofitable businesses, and management initiatives to enhance operational efficiency across all units."

Specifically, the cement and building materials business has managed costs effectively. The packaging business (SCGP) has successfully optimised production planning, effective cost management of recovered paper, and the use of technology and AI to enhance cost efficiency, while the chemicals business (SCGC) has shown a gradual recovery. The chemical product price spread (gap) has begun to improve slightly due to declining crude oil costs. In addition, SCG continues to receive recurring dividend income.

In Q2 2025, working capital was efficiently managed, decreasing by VND5.77 trillion ($220 million) compared to Q1 2025. Cash on hand at the end of Q2 2025 stood at VND35.55 trillion ($1.36 billion).

For its H1 2025 operating results, SCG reported revenue of almost VND194.5 trillion ($7.43 billion) and a net profit of VND14.4 trillion ($550 million). Excluding extra items related to business restructuring, the profit amounted to VND2.55 trillion ($97 million).

In Vietnam, SCG reported revenue from sales of close to VND16.6 trillion ($634 million) during the period. This represents a 1 per cent on-year decrease, indicating relatively stable performance despite weak market conditions and volatile demand. SCG plans to resume operations at the Long Son Petrochemicals (LSP) plant in Vietnam in late August, following a decline in crude oil prices that has improved operational feasibility.

While market conditions remain challenging, the decision reflects a proactive approach to maintaining long-term operational continuity and readiness. In parallel, a project to enhance the plant’s competitiveness by adopting ethane as feedstock is progressing as planned, with completion expected in 2027. At the same time, the group made significant strides in advancing its environmental, social, and governance (ESG) strategy, known as ESG 4 Plus, in Vietnam, with tangible progress recorded in innovation, community engagement, and leadership development.

During the first half of the year, SCG further strengthened its position in green construction and low-carbon innovation, underscoring its commitment to ESG 4 Plus. This was exemplified by a major construction phase of the LSP Enhancement (LSPE) project, which utilised a proprietary low-carbon concrete mix designed to minimise environmental impact. The total concrete structure incorporated 18,000 tonnes of SCG’s Low-Carbon Super Cement as part of this mix, helping to reduce CO₂ emissions by an estimated 6,800 tonnes – equivalent to the annual carbon absorption capacity of approximately 81,000 trees. LSPE aims to incorporate ethane as an additional feedstock to enhance LSP’s long-term competitiveness.

This focus on innovation was not limited to a single undertaking. Throughout the same period, SCG supplied low-carbon materials from Song Gianh Cement to major national infrastructure projects, including Quang Trach Power Plant, Nguyen Hoang Bridge, and Aeon Mall Hue. The introduction of Smartboard Ultra, a next-generation fibre cement board with improved durability and mold resistance certified by the Environmental Product Declaration, further showcased SCG’s commitment to sustainable building solutions.

In consumer-facing product lines, Prime Group introduced Flexitech tiles, which integrate soft-dry and anti-slip technology for improved everyday safety. Meanwhile, Binh Minh Plastics demonstrated the company’s circular economy vision through its eco-certified piping solutions, which were highlighted at Vietbuild Danang 2025.

Complementing these initiatives, SCG also shared its experience in building Thailand’s 'Saraburi Sandbox' – the first low-carbon city model – at Green Trade Forum 2025 organised by Sai Gon Giai Phong Newspaper, offering regional insights to support Vietnam’s net-zero ambition.

SCG’s ESG strategy drives innovation while also placing strong emphasis on inclusive and community-centered development. In alignment with its long-term sustainability goals, the company expanded its social impact initiatives across Vietnam during H1.

In the former Ba Ria-Vung Tau province, SCG marked Children’s Day by awarding scholarships to local students and bringing joy to nearly 300 children through a vibrant festival. The offering also featured a dedicated capacity-building workshop for 100 hearing-impaired students – empowering them with new skills, confidence, and inspiration for the future.

Nationally, SCG together with the Student Assistant Centre of Ho Chi Minh City Youth Union launched 'Speak Up to Net Zero', engaging over 3,000 young participants across Vietnam to explore pressing environmental challenges. The scheme culminated in a dynamic final round that mirrored an ASEAN summit, where students took the stage as passionate youth delegates, voicing bold, solution-driven ideas for a sustainable future.

Further integrating sustainability with creativity, the 'Packaging Speak Out' competition, organised by SCGP, engaged more than 300 university students in design boot camps and expert-led seminars. The competition fostered creative thinking while equipping young talents with real-world skills to drive the future of sustainable packaging – positioning them as key contributors to a circular economy.

To ensure that its external commitments are matched by internal capabilities, SCG also made significant strides in developing its leadership and organisational culture. The company launched the Management Enrichment Programme in Vietnam for the first time, in partnership with Duke University, the US. This bilingual executive training course provided 40 mid-to-senior managers with skills in strategic thinking, innovation, and ESG leadership – strengthening the company’s talent pipeline in line with its sustainability goals.

In addition, SCG promoted continuous learning and employee engagement through its internal podcast series, 'SCG Possibilities – Unlock Your Potential', which encourages personal and professional growth. At an operational level, Long Son Petrochemicals held its 2025 Safety and Health Day to reinforce a strong internal culture of safety and accountability.

SCG remains steadfast in its commitment to delivering on its ESG vision. By integrating innovation, community empowerment, and people development into its business strategy, the company continues to drive meaningful, long-term change – positioning itself as a catalyst for inclusive and low-carbon growth in Vietnam and across the region.

VIR