THE local unit of Thailand-based Siam Cement Group (SCG) saw its second-quarter sales reduced by more than half after the slowdown in the global economy due to the coronavirus pandemic.
In a statement, SCG said it recorded revenues of P2 billion from sales in the Philippines during the three-month period, down by 53% from a year ago. This represents sales from operations in the Philippines and imports from Thailand.
The second-quarter decline brought its six-month revenue from sales down 39% to P5.34 billion, which reflects a slowdown in SCG’s cement-building materials business and exports from Thailand.
However, the global group still managed to record a 33% income growth to P14.8 billion in the second quarter, amid a 12% revenue decline to P141.39 billion, due to efforts to optimize costs. The slowdown in revenue was attributed to lower prices of chemical products during the period.
In the six months starting January, the group’s profits slid 13% to P26.17 billion, as revenues fell 9% to P322.78 billion.
“Even though SCG isn’t in industries severely affected by the pandemic, the company constantly monitors and assesses the situation to be able to respond accordingly,” SCG President and CEO Roongrote Rangsiyopash said in the statement.
“We take a dynamic approach by offering solutions, products and services that better fulfill the needs and capture the untapped market in the wake of growing trends in e-commerce, on-demand food delivery service, and health and wellness. As a result, the operating results for (the second quarter) and (the first half) were relatively less affected by the global economic slowdown,” he added.
SCG has been operating in the Philippines since 1993 through subsidiaries SCG Marketing Philippines, Inc.; Mariwasa-Siam Ceramics, Inc.; SCG International Philippines, Inc. and United Pulp & Paper Co. Its main businesses are in cement-building materials, chemicals and packaging. — Denise A. Valdez
