BANGKOK: Siam Cement Group (SCG), Thailand’s largest industrial conglomerate, reported a 23 per cent increase in the first-quarter net profit. It attributed the increase to the better performance of the chemicals business. Meanwhile, sale revenue of high value added (HVA) products and services for the period also increased to Bt42.26 billion or 39 per cent of total.
“SCG’s continued dedication to the development of HVA products throughout the years, both from SCG’s own research and development (R&D) team and through collaborations with Thailand’s and the world’s leading research institutes,” said Roongrote Rangsiyopash, president and chief executive officer of SCG.
In the first quarter, SCG invested more than Bt900 million in research and development, accounting for 0.8 per cent of sale revenue. It allocates 1 per cent of sale revenue as R&D budget for the whole year. Sale revenue in the first quarter was flat on year, at Bt110 billion. The unaudited net profit at Bt13.6 billion showed a 23 per cent increase from the same period last year.
The chemical business show flat growth in sale revenue, but the profit at Bt9 billion increased 85 per cent on year. Sale revenue of cement and building materials decreased by 3 per cent on year while the net profit also dropped by 8 per cent. The packaging business showed a 10 per cent increase in sale revenue on year to Bt18.85 billion, while the net profit increased 43 per cent on year.