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SCG Announces 2017 Operating Results

SCG’s 2017 operating results are satisfactory, thanks to the company’s strategy of being promptly adaptable to changes in the market and consumer needs, as it prepares to continue to expand its service business. Despite risks such as costs of raw materials and energy, the strengthening Thai Baht, and regional competition coming in this year, the company focuses on strategy of collaborations with digital startups and equipping employees to be adaptable to change, as well as an expansion of its service and logistics business, will help SCG to stay competitive. Meanwhile, its investments in ASEAN are progressing according to plan.

Roongrote Rangsiyopash, President and CEO of SCG, disclosed the company’s unaudited operating results for financial year 2017, with registered revenue from sales increase 6% year over year to 18,127 billion kyats ($ 13,286 million) from higher chemicals prices, while profit for the period reached 2,213 billion kyats ($ 1,622 million), a decrease of 2% year over year, mainly from strong competition in cement–building materials business. On a quarterly basis, SCG’s Q4/2017 revenue from sales increased 14% year over year to 4,705 billion kyats ($ 3,442 million), mainly due to higher chemicals product prices and slightly increased 1% quarter on quarter. Profit for the period reached 521 billion kyats ($ 381 Million), an increase of 1% year over year and 6% quarter on quarter. In ASEAN (exThailand), SCG’s Q4/2017 revenue from sales recorded 17% growth year over year, amounted to 1,147 billion kyats ($ 839 million), which is 24% of SCG’s total Revenue from Sales. The Revenue from Sales in 2017 recorded 9% growth year over year amounted to 4,285 billion kyats ($ 3,141 million).

As of December 31, 2017, total assets of SCG amounted to 23,992 billion kyats ($ 17,558 million), while the total assets of SCG in ASEAN amounted to 5,850 billion kyats ($ 4,281 million), which is 24% of SCG’s total consolidated assets. In the Myanmar market, SCG’s Q4/2017 revenue from sales amounted to 84,066 billion kyats ($ 61 million), which includes sales from both operation in the country and imports from the Thai operations. This represents an increase of 60% year over year mainly from the operation of cement factory which has started operating last year. The 2017 revenue from sales recorded 337 billion kyats ($ 247 million).

For the latest movement in Myanmar, SCG showcased integrated cement and building material solutions in Build and Décor exhibition in Yangon. This allowed not only architects and those in related fields to update the latest trends but also general public to discover their own unique style for better living standard and quality of life that SCG offers with understanding customer’s needs. Moreover, SCG has continually run national eye-health campaign ‘Sharing a Brighter Vision’ for the third consecutive year in November 2017, in collaboration with Mawlamyine General Hospital and Mon State. This campaign aims to lift-up Myanmar well-being by encouraging citizens to aware the eye problems and gives the proper eye care activities from ophthalmologists throughout mass media.

In addition, SCG also continues to focus on high value added (HVA) products and services to quickly respond to the needs of consumers. In the past year, the company has invested more than 167 billion kyats ($ 123 million) in research and innovation, accounting for approximately 0.9% of its total revenue from sales. Sales of HVA products in 2017 totaled 7,057 billion kyats ($ 5,172 million), approximately 39% of the total revenue from Sales. Currently SCG operates cement plants in six countries, with a total production capacity of 33.6 million tons per year, including the operations in Thailand.