SCG reported its operating results with a 57 per cent on-year growth in profit for the third quarter thanks to the recovery of the global chemicals market, an increase in the proportion of high value-added products and services products, the strong business model of its packaging business, and the transformation of its cement-building materials business to meet customer demands.
As for operating results for the first nine months of 2020, SCG registered VND148.67 trillion ($6.46 billion) in revenue from sales, a fall of 9 per cent on-year due to decreased chemicals selling prices in-line with the drop in oil prices. Profit for the period totaled VND19.25 trillion ($836.96 million), up 5 per cent on-year as a result of increased contributions from cement-building materials and packaging businesses. The overall business has remained agile and responsive. Technologies are harnessed to streamline the entire supply chain.
Under the new standards, SCG’s revenue of high value-added products and services (HVA) sales for the first nine months of 2020 amounted to VND69.01 trillion ($3 billion) or 31 per cent of total revenue from sales.
Besides, SCG’s revenue from performance businesses outside of Thailand, including export sales from Thailand in the first nine months of 2020, reached VND95.13 trillion ($4.13 million) or 43 per cent of the total revenue from sales. The figure was slightly lower than the previous year.
As of September 30, the total assets of SCG amounted to VND530 trillion ($23 billion), while the total assets of SCG in ASEAN (ex-Thailand) amounted to VND200.2 trillion ($8.7 billion), which is 38 per cent of SCG’s total consolidated assets.
Based on its third quarter report, SCG in Vietnam owned VND97.3 trillion ($4.23 billion) worth of total assets, an increase of 59 per cent on-year from the chemicals business. The company reported a third-quarter revenue from sales of VND6.64 trillion ($288.7 million) which includes sales from both operations in the country and imports from the Thai operations.
With the aim of creating business success in accordance with circular economy concept to contribute to sustainable growth, SCG Packaging has introduced its first consumer paper product in the market “The Doozypack”, Recycled Paper Playhouse which provides a safe and exciting indoor playground for preschool children up to eight years old.
Notably, Prime – a subsidiary of SCG has received ASEAN Outstanding Enterprise of Vietnam 2020 Award by the ASEAN Association for Economic Cooperation Development for sustainable integration, contributing to the economic development of the country as well as promoting international contact.
Roongrote Rangsiyopash, president and CEO of SCG said, “The operating results for the third quarter and the first nine months of 2020 achieved favourable growth despite the COVID-19 pandemic, thanks to the recovery in the chemical market and notable HVA product improvements seen in agricultural, automotive, and durable goods sectors. The packaging business’ unique business model offered end-to-end solutions to achieve quality growth. Business transformation efforts have enabled the company to move swiftly and stay ahead of the curve.”
“Such efforts have brought about a series of enhancements to its products and services with end-to-end solutions, Active Omni-Channel, HVA, and products that align with the circular economy. Besides, SCG has maintained a state of readiness to explore business opportunities, prepare for a market upturn, and build long-term growth trajectory,” Roongrote said.
Along with business activities, SCG also paid attention to corporate social responsibility activities. Notably, relating to the current COVID-19 pandemic in Vietnam, SCG takes the safety and health of related stakeholders as top priority by joining hands with the local government to protect the COVID-19 pandemic. SCG and its subsidiaries have donated nine mobile positive pressure chambers developed by the company which is highly advantageous in preventing the spread of the disease to help ease the plight of medical personnel in Danang city and Dong Nai province.
Besides, SCG supports the community where it operates by organising a back-to-school celebration with safety themes for Ba Ria-Vung Tau School for Disabled Children, as well as by donating VND1 billion ($43,480) to the province’s Study Encouragement Fund to support the development of disabled children.
SCG is well on track to achieve more growth despite the COVID-19 pandemic challenges. The business will continue developing high-value-added innovations, products, and services, and end-to-end solutions to prepare for a market upturn and build long-term growth.