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SCG announces Q2 and H1 2024 operating results, continuously improving, increasing business fitness
Strictly controlling costs, accelerating delivery of products and innovations that meet customer needs, overcoming economic storms in the second half of the year
Bangkok: July 25, 2024 – SCG announced its operating results for Q2 2024, continuously improving, with sales and profits increasing from the previous quarter, benefiting from the recovery of Vietnam and Indonesia, accelerating business fitness, overcoming domestic economic storms, slow and concentrated growth, and international conflicts, emphasizing increasing the use of alternative fuels, managing costs, focusing on high-potential businesses, using AI to drive production efficiency, and aggressively serving solutions that meet customer needs throughout ASEAN, delivering low-carbon cement to the global market. Vietnam’s petrochemicals will resume factory testing within this September.

Mr. Thammasak Sethaudom, President and CEO of SCG, revealed that “SCG’s operating results in Q2 2024 improved from the previous quarter, driven by increased sales volume of SCG Chemicals, improved purchasing power in ASEAN markets, especially Vietnam and Indonesia, as well as dividend income from investments in other businesses. This resulted in revenue of 128,195 million baht, an increase of 3 percent from the previous quarter, with a profit for the period of 3,708 million baht, an increase of 53 percent from the previous quarter, while the first half of 2024 had revenue of 252,461 million baht, similar to the previous year, with sales proportions from SCG Chemicals at 39 percent, SCGP at 27 percent, SCG Cement and Green Solution at 16 percent, SCG Smart Living and SCG Distribution and Retail at 13 percent, and SCG Decor at 5 percent.

Although SCG has been affected by the global petrochemical cycle, which is still in a downward trend, tensions from geopolitical conflicts, a highly competitive market from imported products from China, and a slow recovery of the domestic economy due to weak purchasing power in the middle-low-income group, SCG has accelerated business fitness and created operational flexibility by 1.) managing energy costs, such as the cement business in Thailand increasing the use of alternative fuels by 47 percent, 2.) focusing on businesses with growth potential, such as focusing on a complete solar energy business for the residential market. Factories and industrial estates 3.) Improve storage, transportation and distribution, such as using digital technology to plan deliveries and inspect goods, helping to reduce working time, reduce damage, and reduce the chances of errors in receiving and delivering. 4.) Apply artificial intelligence (AI) to increase production efficiency. SCG Chemicals uses AI solutions from REPCO NEX to precisely care and maintain machinery with 100 percent reliability. 5.) Aim to deliver solutions with functions and prices that meet customer needs, such as CPAC, a compact small concrete mixer truck for construction work in cities with small alleys, capable of carrying up to 2 cubic meters of concrete per trip, helping to easily manage cement usage. Reduce waste”

In the first half of 2024, New Products Development (NPD) had sales of 38,690 million baht, accounting for 20 percent of total sales, while High-Value Added Products & Services (HVA) had sales of 77,037 million baht, accounting for 39 percent of total sales, and environmentally friendly products SCG Green Choice had sales of 136,124 million baht, accounting for 54 percent of total sales.

Overseas business operations, including exports from Thailand, in the first half of 2024 had sales of 111,367 million baht, accounting for 44 percent of total sales.

In the second half of 2024, the overall economy continues to face challenges, but SCG is ready to face them with agility and stability, with cash and cash under management of 78,907 million baht, as well as innovative solutions to meet customer needs in a comprehensive manner.

✅SCG Cement and Green Solution Accelerate the promotion of low-carbon cement, Generation 2, which can reduce carbon dioxide by 15-20 percent compared to conventional cement by expanding to foreign markets, including the United States and Australia, which has created confidence in the quality of use, to the point that more than 1 million tons have been exported to the United States. Recently, the first low-carbon cement was launched in Vietnam, ‘SCG Low Carbon Super Cement’, while in Thailand, the market continues to grow, with the proportion of use replacing conventional cement at more than 86 percent, ready to support the increasing number of government construction projects. In addition, a variety of cement models have been launched, with quality and reasonable prices to meet the needs of customers more comprehensively, such as the ‘5 STAR’ brand in Cambodia, ‘BEZT’ in Indonesia, ‘ADAMAX’ in Vietnam, and ‘Rhino’ in Thailand. ✅SCG Distribution and Retail is ready to serve home products and services through more than 87 retail stores in ASEAN. In the first half of the year, it expanded the modern trade ‘Mitra10’, a retail market specialist in Indonesia, with more than 65,000 products, with 2 more branches in Sumatra and West Java, which have large populations. Serving more than 1 million customers per month, aiming for 100 branches by 2030, currently 50 branches have been opened.

✅SCG Smart Living advances to introduce innovative landscape materials, such as SCG cement floor tiles to support tourists, allowing them to design unique patterns with special painting techniques, such as peony patterns for sidewalks in Yaowarat. It also launches an innovative Air Scrubber air purification system for small areas under the ONNEX by SCG Smart Living brand, targeting building and office customers with usable areas of less than 3,500 sq.m., and expanding its services to cover ASEAN and the Middle East.

✅SCG Decor (SCGD) drives a plan to double growth by 2030, starting production of SPC LT by COTTO floor tiles with a production capacity of 1.8 million sq.m. per year, aiming to capture a market share of over 500 million baht, and moving forward with construction of high-value-added product projects, the beautiful, strong, and popular porcelain tile group, in 3 major projects in Vietnam and Thailand, expected to start in

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