Southeast Asian business conglomerate SCG announced that it had achieved 57-percent growth in profit for its Q3 2020 operating performance due to the recovery in the global chemical market, an increase in the proportion of HVA products, strong packaging business and transformation efforts in the cement-building materials business.
In a statement, SCG said it is well on track to achieve continued growth despite the challenges brought about by the COVID-19 pandemic.
For SCG’s operations in the Philippines, it owns about Php 13.2 billion (US$ 255 million) worth of total assets, an increase of 45 percent year-on-year mainly from the packaging business. The company reported a Q3 2020 revenue from sales of Php 3.3 billion (US$ 68 million), which includes sales from both operations in the country and imports from the Thai operations. This represents a decrease of 17 percent year-on-year, mainly from Thailand exports. For the first nine months of 2020, SCG’s Philippine market reported a revenue from sales of Php 8.7 billion (US$ 174 million), a 31-percent decrease year-on-year, mainly from the packaging business and cement-building materials operations and export from Thailand.
For the Philippine market, SCG Marketing Philippines Inc. continues to provide a full range of home and living solutions to customers with new products such as Smart Insulation, Smart Screws and Smart Frames. This is in preparation to offer full wall and ceiling ecosystems. This also promotes integrated solutions, which will strengthen partnerships with technology providers, developers and end-users.
Mariwasa Siam Ceramics, Inc., on the other hand, which is at the forefront of the ceramic tile manufacturing industry, introduced Mariwasa Tile Adhesive Heavy Duty. The product’s improved formula makes it more suitable for big-size floor and wall applications, especially on non-absorptive tiles. Mariwasa will also launch Skim Coat Superfine White, formulated to smoothen old and uneven surfaces for a quality finish. Mariwasa LVT & SPC, a premium quality vinyl flooring inspired by nature and specially designed for home and commercial applications, is also in the pipeline. The launch of these new products aims to provide the industry with total construction solutions.
SCG also continues to ensure the safety of medical personnel in the Philippines by donating Negative Pressure Mobile Isolation Units. Recently, SCG donated units to Sto. Tomas City, Batangas; Calumpit, Bulacan; and the Veterans Memorial Medical Center.
SCG President and CEO Roongrote Rangsiyopash disclosed, “The company’s unreviewed operating results for Q3 2020 registered a Php157,371 billion (US$ 3.222 billion) revenue from sales, an increase of 5 percent quarter-on-quarter. Profit for the period totaled Php 15.187 billion (US$ 311 million), up 4 percent quarter-on-quarter, thanks to the better performance of the chemicals business due to improving Asian demand and stronger cement-building materials business. Compared to last year’s performance, revenue from sales dropped 9 percent while profit for the period rose to 57 percent.
“The Q3 2020 operating results and the first nine months of 2020 showed favorable growth for SCG despite the COVID-19 pandemic. The recovery in the chemicals market and notable HVA product improvements seen in the agricultural, automotive and durable goods sectors contributed greatly to this result. Similarly, the packaging business’ unique business model offered end-to-end solutions for continuous growth. SCG has maintained a state of readiness to explore business opportunities, prepare for a market upturn and build a long-term growth trajectory. Business transformation efforts have enabled the company to move swiftly and stay ahead of the curve,” Roongrote shared.