Thursday, October 6, 2022

SCG Announces Strong Operating Results In 2021 Despite Inflation And COVID-19

THE PHILIPPINE POST

SCG Announces Strong Operating Results In 2021 Despite Inflation And COVID-19

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SCG announced strong operations and steady in FY2021 despite inflationary pressures, rising energy and raw materials costs, and the economic impact of the COVID-19 pandemic. Business transformation to address three megatrends — incorporating ESG into business operations, leveraging digital transformation to meet customer demands that help lower production cost and grow e-commerce, and developing new solutions to meet wellness trends and improve quality of life – enabled SCG to achieve these gains in 2021. SCG is prepared to look after the society to reduce inequality and increase income for communities in Thailand and ASEAN.

SCG President and CEO Roongrote Rangsiyopash disclosed, “The company’s unaudited operating results for FY2021 registered revenue from sales of PHP816,782 million (US$16,576 million), an increase of 33 percent y-o-, owing primarily to improved performance of all businesses, in particular prices and sales volume of chemical products. Profit for the year totaled PHP72,684 million (US$1,475 million), an increase of 38 percent y-o-y, thanks to better performance of the Chemicals Business.”

SCG’s revenue from sales of High Value-Added Products & Services (HVA) in 2021 hit PHP281,217 million (US$ 5,707 million) or 34 percent of total revenue from sales. New Product Development (NPD) and Service Solutions accounted for 15 percent and 5 percent of total revenue from sales, respectively.

Revenue from sales totaled PHP215,638 million (US$4,274 million) in Q4 2021 , an increase of 8 percent q-o-q on the back of improved performance in all businesses. Profit for the period stood at PHP12,556 million (US$249 million). SCG’s revenue from its operations outside of Thailand, including export sales from Thailand, registered PHP374,247 million (US$7,595 million) in FY2021 or 46percent of total revenue from sales, which is 44percent higher than the previous year.

“Businesses should be prepared for higher energy and raw material costs due to inflation. As purchasing power begins to recover, market forces drive up the prices of goods and services. Thus, business strategies in each industry must be appropriately optimized and . businesses must have the financial discipline to cope with rising interest rates. We need to be innovative to meet ever-changing customer demands on top of adopting new technologies, in particular digital. We at SCG have devised business strategies to address the inflation and build long-term growth in each of our businesses in line with the three megatrends,” Roongrote added.

 

SCG in ASEAN (ex-Thailand)

For SCG’s operations in ASEAN (ex-Thailand), revenue from sales in Q4 2021 recorded a 62percent increase y-o-y, amounting to PHP62,668 million (US$1,242 million), and 29 percent of SCG’s total revenue from sales. This includes sales from both local operations in each ASEAN market and imports from the Thai operations. As of 31 December 2021, the total assets of SCG amounted to PHP1,314,658 million (US$25,795 million) while the total assets of SCG in ASEAN (ex-Thailand) totaled PHP596,143 million (US$11,697 million), 45 percent of SCG’s total consolidated assets.

Based on the Q4 2021 report, SCG’s total asset in the Philippines was PHP19,752 million (US$388 million), an increase of 6 percent y-o-y. The company reported Q4 2021 revenue from sales of PHP3,966 million (US$79 million), a 31 percent increase y-o-y. For 2021, SCG Philippines reported revenue from sales of PHP16,241 million (US$330 million).

SCG Marketing Philippines introduced The Decormart (formerly SCGshop), a one-stop-shop for interior and exterior decorations that aims to deliver bigger, better and hassle-free shopping sprees for home improvement as consumers spend less time in physical stores.

Meanwhile, Mariwasa Siam Ceramics, Inc. introduced its new product, the Mariwasa Tile Grout. The tile grout bonds tiles and prevents cracks and chips caused by ground movements. Additionally, the company launched a new vinyl 30x30cm tile collection that reflects style, comfort and quality. The versatile item is water- and stain-resistant and offers optimum durability.

During the recent super typhoon Odette that affected the Visayas and Mindanao, SCG and Mariwasa extended assistance with a donation of PHP1 million through the GMA Kapuso Foundation.

 

Harnessing ESG in business operations.

With fairness and transparency as the developmental framework for its global business practices and in line with the UN SDGs, SCG has adopted ESG 4 Plus, a four-target approach that covers Set Net-Zero, Go Green, Reduce Inequality and Embrace Collaboration. The company has committed an initial investment of 70 billion baht by 2030 to improve the production process and develop low-carbon businesses to achieve net-zero greenhouse gas emission by 2050.

In 2021, SCG lowered its greenhouse gas emissions by 1.3 million tons of carbon dioxide, a reduction of 4.1 percent over the same period in 2020. At the same time, SCG increased the proportion of SCG Green Choice product sales from 33 percent in 2020 to 41 percent.

 

Meeting customer needs through digital transformation

To minimize cost and time while increasing performance, SCG explored several approaches to leverage digital transformation in its operations. These include Digital Twin technology, a virtual agent that aids the evaluation and efficient modification of production patterns and CPAC Green Solution, which utilizes digital technology to optimize construction efficiency.

 

Improving quality of life, one solution at a time

To meet wellness trends and help improve users’ quality of life, SCG has developed innovative solutions that can be applied to different life situations. To help combat COVID-19 and other viruses, SCG offers the Capsule, a medical-grade plastic innovation for air travel; soluble laundry bags that reduce the risk of infecting clothing; the Ultra Clean Wall Solution, a smart board innovation that keeps a room clean and germ-free; and the SCG Bi-Ionization Air Purifier, which helps eliminate bacteria and viruses in homes and buildings.

SCG’s Smart Building Solution is an innovative building system management solution that uses IoT technology to improve air quality and save energy. The SCG Solar Roof Solutions, meanwhile, can generate electricity from the roof and garage roof to help reduce electricity costs and utilize electricity with electric vehicles.

 

Empowering the community with tangible solutions

Additionally, SCG is committed reducing inequality in society. To assist unemployed individuals affected by COVID-19, the company has established in-demand skill development programs, which currently have 3,000 participants. These programs include SCG’s Skills Development School for upskilling truck drivers, the Q-Change Application for providing handymen with renovation job opportunities, the Community Power Project for career development in product processing and online/offline e-commerce and the SCG Foundation’s Learn to Earn project, which trains assistant nurses, assistant dentists and elderly caretakers. SCG hopes to have 20,000 participants across the different programs by 2025.

Furthermore, SCG provides educational scholarships to students in need across the ASEAN to help them pursue careers in medicine, engineering and education, among others. SCG also educates communities about water management to ensure an adequate water supply for consumption and farming, which will increase productivity to maintain their stable incomes. Additionally, SCG delivered COVID-19 innovations worth 470 MB to Thailand and ASEAN countries.

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