Thai group announces operating results for Q4 2018 and FY 2018.

Photo: SCG

Thai group SCG has announced its operating results for the last quarter of 2018 and FY2018, with revenue from sales in Vietnam amounting to $356 million in the former and $1.35 billion in the latter, an increase of 20 per cent against 2017 and mainly coming from its chemicals business.

Mr. Roongrote Rangsiyopash, President and CEO of SCG, released the company’s unaudited operating results for FY2018 in all markets, with revenue from sales up 6 per cent year-on-year to $14.808 billion. Profit for the year was $1.39 billion, down 19 per cent year-on-year due to global economic uncertainties, primarily driven by the US-China trade war, volatile oil markets, and a strengthening Thai baht, which affected SCG’s overall performance.

Revenue from sales of high-value added products and services reached $5.73 billion, an increase of 5 per cent year-on-year and accounting for 39 per cent of total revenue from sales. Spending on innovation research and development totaled $145 million, or 1 per cent of total revenue from sales.

SCG harnesses a broad range of digital technologies that include Artificial Intelligence (AI) to help analyze consumer insights; Blockchain, a digital ledger automatically connecting financial institutions to vendors that enables efficient information sharing; Robotic Process Automation (RPA) development and Machine Learning that help resolve production system complexities, allowing adequate productivity to meet market demand; and Deep Technology investment to reap knowledge of future trends.

In its latest movement in Vietnam, intended to support street football players to shine as superstars, SCG held the Street Football Festival in Hanoi’s Old Quarter, with thousands of football fans cheering on teams and enjoying special football activities. Since kicking off the tournament in both Ho Chi Minh City and Hanoi, 140 football teams with nearly 1,000 players have taken the field.

Under the SCG Sharing the Dream scholarship program, SCG granted scholarships to 20 passionate university students who demonstrate good morals and outstanding academic performance. The scholarships continue until students graduate with a Bachelor’s degree. This program reflects SCG’s commitment to supporting young Vietnamese pursuing their passion.

“In 2019, SCG will continue to focus on two key strategies,” Mr. Roongrote said. “One is stability, which the company has maintained continuously and has acted promptly to cope with recent global economic volatility, resulting in overall 2018 profitability ratios of 9 per cent; a considerably strong figure compared to overall industry performance.”

“The financial position also remains robust, with a Net Debt to EBITDA ratio of 1.7 times, while most loans are in Thai baht and over 90 per cent are at a fixed rate. The cash flow is stable due to the healthy performance of core businesses.”

As at end of 2018, total assets stood at $18.2 billion, while total assets of SCG in ASEAN (ex-Thailand) amounted to $5.05 billion, which is 26 per cent of SCG’s total consolidated assets.

by Khanh Chi