SCG announced its operating results for Q2/2024, demonstrating continuous improvement with increased sales and profit compared to the previous quarter, driven by economic recovery in Vietnam and Indonesia. SCG has enhanced business agility to navigate economic challenges, including a slow and concentrated domestic economic recovery and geopolitical conflicts. The company is increasing the use of alternative fuels, focusing on cost management, targeting high-potential businesses, leveraging AI to boost production efficiency, and offering attractive solutions to customers across ASEAN. Low Carbon Cement is being introduced to the global market, and the Vietnam petrochemical complex will resume testing operations in September.
Thammasak Sethaudom, President and CEO of SCG, said, “SCG’s operating results for Q2/2024 have improved from the previous quarter due to increased sales volume from SCG Chemicals and stronger spending power in the ASEAN market, particularly in Vietnam and Indonesia. Furthermore, dividend income from SCG Investment contributed to a total revenue of 128,195 MB, an increase of 3% q-o-q, with a profit of 3,708 MB, up 53% q-o-q. For the first half of 2024, revenue was 252,461 MB, close to last year’s figure. The sales composition included 39% from SCG Chemicals, 27% from SCGP, 16% from SCG Cement and Green Solutions, 13% from SCG Smart Living & SCG Distribution and Retail, and 5% from SCG Decor.
Despite SCG being impacted by the petrochemical trough and tensions from geopolitical conflicts, intense market competition from Chinese imports, and a slow domestic economic recovery due to weak spending power among the middle to low-income groups, SCG has actively enhanced its business agility and operational resilience through several strategic measures: 1.) Energy Cost Management, for example, the cement business in Thailand has increased the use of alternative fuels to 47%; 2.) Focus on Growth Potential Business, such as comprehensive solar energy solutions for residential markets, plants, and industrial estates; 3.) Improvement of Storage, Transportation, and Distribution of Products by employing technology for delivery planning and goods receipt to reduce work time, minimize damage, and reduce errors in the receipt and delivery process; 4.) Application of Artificial Intelligence (AI) for Operation Efficiency, where SCG Chemicals utilizes AI solutions from REPCO NEX to precisely manage machinery maintenance, achieving 100% reliability; and 5.) Deliver solutions that meet both the functional and pricing needs of customers, such as CPAC’s compact concrete mixer trucks, which are designed for urban construction with narrow alleys, capable of transporting up to 2 cubic meters of concrete per trip, facilitating efficient cement usage and reducing waste.”