However, revenue from sales dropped 9 per cent y-o-y to Bt399.94 billion largely due to the drop in chemical prices and sales volume.
The company attributed its success to the dedication of SCG staff who complied with strict Covid-19 measures combined with operational agility and use of digital technology to explore new opportunities.
The 2020 operating results by business units are as follows:
• Chemicals: Sales revenue dropped 17 per cent y-o-y to Bt146.87 billion due to a drop in product prices and lower sales volume. Profit for the period rose 14 per cent y-o-y to Bt17.67 billion as a result of higher product spread.
• Cement and building materials: This unit recorded a sales revenue of Bt171.72 billion, dropping 7 per cent y-o-y due to the pandemic and challenging economic environment. However, profit for the period came in at Bt6.42 billion, an increase of 18 per cent y-o-y due to efficiency improvements and lower production cost.
• Packaging: Sales revenue of Bt92.79 billion, up by 4 per cent y-o-y. Profit for the period also rose 23 per cent y-o-y to Bt6.46 billion.
SCG said the operation of its chemical business has been running smoothly both locally and overseas with robust business continuity and sales portfolio management.
The business has increased the sale of plastics for the production of consumer products that are in high demand such as food packaging, beverage packaging, and e-commerce packaging.
In markets that are hit hard by Covid-19, the business has shifted sales to markets less affected by lockdowns. The chemicals business has also applied digital technology, like a digital commerce platform that links purchase orders directly with supply management.
SCG has expanded its downstream businesses and is exploring new businesses to create product differentiation and enhance business flexibility.
For circular economy solutions, SCG has started the production of post-consumer recycled resins utilising used plastics.
The cement and building materials unit has boosted its operational efficiency by adjusting operations and business models so they are ae in line with increased consumer appetite for hygiene products and e-commerce.
The packaging business has adapted itself to cope with economic fluctuations by further reinforcing its integrated business model to build sustainable growth in Asean.
The company has recently acquired shares in Bien Hoa Packaging to fortify its position and strength in upstream packaging business in Vietnam. On top of that, the company also acquired Go-Pak UK Limited (Go-Pak), a leading foodservice solution provider in the UK, Europe, and North America, with its production facilities in southern Vietnam. These acquisitions will augment market potential in the food-packaging business.
Published : January 28, 2021
By : The Nation