SCCC’s 2Q Profit Jumps 60% on the Success of Cost Reduction Plans!

Siam City Cement Public Company Limited (SCCC) has reported its 2Q20 consolidated financial statement through the Stock Exchange of Thailand as follows;

SCCC reported a net profit of 1,024 million baht in 2Q20, increased 60.8% from a net profit of 637 million baht. The increase in net profit was mainly due to the success in cost reduction plans.

As of 2Q20, SCCC reported a decline in total expense from 11,079 million baht in 2Q19 to 8,768 million baht in 2Q20. SCCC stated that the company has implemented several cost reduction initiatives including optimizing operations to assure profitability during the much-disrupted economic environment. Plant reliability has been improved to reduce breakdowns and effectively reduce maintenance cost.

Additionally, a downward trend in energy prices has benefitted SCCC in lowering production costs as well as distribution costs. Fixed operating costs have also been rationalized and brought down commensurate with the prevailing business climate. Furthermore, SCCC decided to mothball one cement kiln at the Saraburi plant in May to optimize resources and capacities corresponding to demand contraction across the region.

 

Meanwhile, its net sales was recorded at 10,165 million baht in 2Q20, decreased 14.6% from a net sales of 11,901 million baht in 2Q19.