Siam City Cement revenue increases, net profit falls

Siam City Cement Co recorded an 80 per cent decline in second-quarter net profit with the fall being attributed to rising costs and weaker demand in its home market of Thailand.

Revenue during the 2Q17 rose by 39 per cent to THB10.8bn (US$324.4m) compared to the same period of last year but net profit fell to THB246m from THB1.2bn a year earlier.

For the first half of the year, total revenue was up by 34 per cent to THB21.4bn. President and chief executive of SCC Siva Mahasandana said the rise in sales in the first quarter was a result of recent acquisitions in Bangladesh, Sri Lanka and Vietnam. However, net profit in the first half was also down by 69 per cent to THB796m, dragged down by the second-quarter performance. 

“Our performance was also affected by the non-recurring cost of approximately THB600m, which included restructuring costs, non-operating asset write-offs, plant breakdowns, consulting fees, and accounting and financing charges associated with recent acquisitions," the Bangkok Post quoted Mr Siva as saying.

Expectations for the second-half of this year are better, as continued rises in sales revenues from Bangladesh, Sri Lanka and Vietnam are expected to achieve healthy growth rates. The company has also  launched a comprehensive Business Transformation Plan to address revenue generation and optimise cost structure to sustain competitiveness, Mr Siva said.

Furthermore, SCCC’s joint venture plant under construction in Cambodia, Chip Mong Insee Cement, is expected to be commissioned in the final quarter of this year.

Published under Cement News