Brokers Expect SCC to Report Lower 1Q22 Earnings over Rising Costs and Expenses

Two consolidated companies of The Siam Cement Public Company Limited (SET: SCC) have reported their 1Q22 income earlier today, showing growth in the cement-building material business, but decline in the packaging business. 

SCG Ceramics Public Company Limited (SET: COTTO) reported a net profit of 211 million baht in 1Q22, increased 13.11% from a net profit of 187 million baht in 1Q21. 

Revenue from sales amounted to 3,231 million baht, increased 15 % YoY due to continuous increase in demand which affected sales volume, increased by 13% YoY in both domestic and export while average selling price increased 2% YoY.

Meanwhile, SCG Packaging Public Company Limited (SET: SCGP) reported a net profit of 1,657 million baht in 1Q22, decreased 22.33% from a net profit of 2,134 million baht in 1Q21. The YoY decrease in performance was due mainly to global broad-based increase in raw materials and energy costs. 

A decline in the packaging business might seem concerning, but the market had already anticipated the slowdown in its performance, showing in a slump of share price by 18% this year. 

In the meantime, investors are looking forward to the earnings report of SCC, which is expected to be released tomorrow. 

Net profit from the cement-building material business accounted for 9% of SCC’s total net profit in 2021. The packaging business accounted for 13%, and other businesses accounted for 17%. 

The only business that could determine the ups and downs of SCC is its last business segment, chemical business, which accounted for 61% of SCC’s total net profit in 2021. The business showed a huge leap of its performance in 2021, reporting an increase of more than 150% in revenue. 

Oil prices are performing better than 4Q21, trading around $90-100 per barrel in the first quarter of 2022, while Naphtha prices recently hit a record high of more than $1,000 per tonne in early March.


According to the consensus from Refinitiv, brokers estimated SCC to report a 18% increase in revenue in 1Q22 to 144 billion baht, but net profit is expected to decrease 43% to 8,448 million baht due to a rise in costs and expenses.