SCC Reports a Decline in 1Q24 Net Profit amid Weak Chemical Demand

The Siam Cement Public Company Limited (SET: SCC) has announced its 1Q24 consolidated financial statement through the Stock Exchange of Thailand as follows;

Year 1Q24 1Q23
Net Profit (Loss)
Million Baht
2,424.86 16,525.74
Earning Per Share
2.0200 13.7700
% Change -85.33

SCC reported a net profit of 2,424 million baht in 1Q24, decreased 85.33% from 16,525 million baht in 1Q23. The company stated that the YoY decline was mainly due to a non-recurring gain from fair value adjustment of investment in SCG Logistics of 11,956 million baht that was recorded in 1Q23.

EBITDA from Operations saw only 4% growth YoY, weighted by a 50% decline in its chemical business, though up 96% QoQ. The company stated that in 1Q24, petrochemicals industry demand remained weak due to ongoing geopolitical tensions and global economic conditions. Despite these challenges, the decrease in supply during the maintenance season has contributed to an improvement in chemical prices.

The chemical segment recorded a net loss of 1,866 million baht in 1Q24, compared to a net profit of 589 million baht in 1Q23.

Its packaging business (SET; SCGP) reported improved 1Q24 revenue from sales of 33,948 million baht, which rose 219 million baht YoY. EBITDA reported at 5,152 million baht, increasing 15% YoY and profit for the period registered at 1,725 million baht, a growth of 41% YoY.

Meanwhile, SCG Decor (SET: SCGD) reported revenue from sales registered at 6,784 million baht, a decline of 7% YoY. However, EBITDA registered at 854 million baht, a gain of 2% YoY, and profit for the period reported at 258 million baht, increased 191 million baht YoY.