SCC’s 2020 Earnings Grow after 3-Core Businesses Report Higher NP, Offering Bt8.5 Div.

The Siam Cement Public Company Limited (SCC) has announced its yearly consolidated financial statement of 2020 through the Stock Exchange of Thailand as follows;

SCC reported a net profit of 34,143 million baht in 2020, increased 6.65% from a net profit of 32,014 million baht in the previous year.

 

Total revenue from sales in 2020 decreased 9% YoY to 399,939 million baht, largely from lower chemical prices and sales volume. However, EBITDA slightly decreased only 1% YoY to 74,600 million baht, thanks partly to the continuous cost & efficiency improvements seen in CBM business. Profit for the year registered at 34,144 million baht, an increase of 7% YoY from better performance in all businesses.

 

For FY2020, revenue from sales of cement–building materials business registered at 171,720 million baht, decreased 7% YoY due to COVID-19 pandemic and challenging economic environment. However, EBITDA registered 21,591 million baht, an increase of 3% YoY and Profit for the Period registered 6,422 million baht, an increase of 18% YoY as a result of continuous efficiency improvements and lower production cost.

However, without the asset impairments, EBITDA would register at 24,405 million baht or 10% increased YoY and without severance pay adjustment in year 2019 and asset impairments, profit for the period would register at 8,793 million baht or 18% increased YoY.

 

Revenue from sales of chemical business in 2020 decreased 17% YoY to 146,870 million baht from lower product prices and lower sales volume. EBITDA declined 4% YoY to 30,965 million baht from lower dividends from associates. Profit for the period increased 14% YoY to 17,667 million baht as a result of higher product spreads.

 

Packaging business reported FY2020 profit of 6,457 million baht, an increase of 23% YoY. revenue from sales registered 92,786 million baht, increased 4% YoY, while EBITDA registered 16,884 million baht, increased 11% YoY. EBITDA margin improved to 18% for FY2020 compared to 17% for FY2019.

 

Total dividends received in FY2020 amounted to 7,158 million baht, a decrease of 56% YoY or 9,050 million baht, with details as follows: a) 6,488 million baht from “Associated” companies (20%- 50% stake), and b) 670 million baht from “Other” companies (less than 20% stake).

 

The Board of Directors of SCC has approved a year-end 2020 dividend of Bt8.5 per share (57% of H2/20 earnings) that is payable on 23 April 2021. The total FY2020 dividend paid amounts to 14.0 Bt/sh (16,800 million baht), which comprises the H1/20 interim of Bt5.5 per share, and the year-end of Bt8.5 per share. This compares to the FY2019 dividend of Bt14.0 per share.