Siam Cement Group (SCG) Philippines registered double-digit revenue growth in the third quarter despite the lockdown measures and more expensive energy and raw materials.
The cement manufacturer reported that the revenue of its local unit for the period reached P3.89 billion, which showed a 17 percent year-on-year increase. This, however, is lower than the P4.55-billion revenue it booked in the previous quarter.
SCG Philippines’ total assets, meanwhile, grew by 10 percent to P19.934 billion due to its cement building material business.
In the third quarter, SCG Marketing Philippines Inc. launched a hardware business for local brands in five major Ceramic Tiles and More branches in Batangas, Antipolo, Balintawak, Bacoor and Calamba. The company seeks further expansion before the year ends, in addition to finalizing the product portfolio for more and diversified offerings.
United Pulp and Paper Co. Inc., an SCG packaging subsidiary, was able to maintain a robust operation despite the rising cost of raw materials amid the supply chain disruptions.
“Despite escalating building materials demand, bottlenecks in the global supply chain restricted supply and hindered shipping activities in key industries,” SCG said. “However, the trend is expected to turn in the coming months, in time for the December holidays with rebounds forecasted.”
Despite the delays in shipments, SCG said the subsidiary was able to continue catering to several manufacturers, including the food and beverage, personal care items and pharmaceutical industry, among others.
Total revenues booked by SCG for the period was flat at $4.004 billion while the “normalized” profit slid by 47 percent to $275 million from the previous quarter amid “lower chemicals product spreads and equity income.”
The third quarter profit includes the set impairment of cement plant in Myanmar and gain from fair value adjustment of investment was 60 percent lower at $207 million.
Excluding Thailand, the SCG’s Asean operations ended the period with $1.012 billion. Total assets for the regional segment amounted to $10.981 billion, representing 44 percent of SCG’s total consolidated assets.
“SCG’s financial position remains strong despite a dip in profits as a result of regional lockdown and higher fuel and raw material costs,” SCG President and CEO Roongrote Rangsiyopash said.