SCCC Posts a Decline of 25.2% in 1Q20 Profit after Faces Demand Contraction

Siam City Cement Public Company Limited (SCCC) has reported its 1Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

SCCC reported a net profit of 826 million baht in 1Q20, decreased 25.2% when compared to a net profit of 1,105 million baht in 1Q19 mainly due to cement and construction materials have faced demand contraction.

 

SCCC net sales were adversely affected by lower demand because of drought and delayed government budget spending on the back of subdued residential construction activitiesm in Thailand, prolonged construction permits freezing in Ho Chi Minh City of Vietnam and delayed foreign construction projects in Sri Lanka. Covid-19 effects started to impact the performance at the end of March.

 

Several scheduled kiln shutdown maintenance in Thailand and Sri Lanka weighed on SCCC profitability, offset partially by lowered global energy prices, declining raw materials landed costs and improved efficiency. Stability of overseas plant operations and proactive fixed cost cutting helped to further alleviate impacts. As a result of a challenging economic outlook and to address any effects on financial performance caused by the Covid-19 pandemic, SCCC announced the mothballing of kiln 1 in Thailand in April 2020.