Bangkok, 30 January 2025 – SCG announced its 2024 operating results, reporting an EBITDA of 53,946 MB driven by stringent cost management, accelerated delivery of High-Value Added Products & Services (HVA), and continuous reduction of working capital, investment in projects that offer high and quick returns, while debt has decreased compared to the previous quarter. The company reaffirms the commitment to shareholder care. A dividend of 5.00 Baht per share, equivalent to 95% of net profit, has been approved. Confident in its strong financial health, SCG is well-positioned to seize opportunities from the region’s economic recovery in 2025.
Thammasak Sethaudom, President and CEO of SCG, said that in 2024, SCG effectively managed EBITDA, achieving 53,946 MB, which is at the same level as 2023. This was driven by SCG’s adaptation to challenges, including the slowdown in the petrochemical cycle, geopolitical tensions, volatile energy costs, and high interest rates. In Thailand, the delayed disbursement of the government budget from the previous year, persistently high household debt, and intensifying competition from Chinese products added further pressure. Despite these challenges, SCG maintained its financial strength and ensured continuous returns for all shareholders. As a result, the Board of Directors has resolved to propose to the shareholders’ meeting an annual dividend payment of 5.00 Baht per share, totaling 6,000 MB, representing 95% of net profit.
SCG remains committed to strengthening its financial health by maintaining strong EBITDA, which is a core principle of business management. The company has been implementing reinforcement measures announced at the end of Q3/2024, with significant outcomes as follows: 1) Working capital management has resulted in a reduction of approximately 6,200 MB from the previous year, 2) Restructuring operations and business activities, including discontinuing unprofitable businesses in 2024 to enhance operational efficiency, 3) Controlled capital expenditures (CAPEX), prioritizing only projects with high and quick returns. As a result, net debt has decreased by 16,777 MB from the previous quarter, with a net debt-to-equity ratio of 0.7 times. SCG’s financial position remains strong and stable, with year-end cash reserves of 53,331 MB.
SCG is well-positioned to seize opportunities from the region’s economic recovery. In Thailand, government budget disbursement is expected to continue steadily, while in ASEAN, particularly Indonesia and Vietnam, GDP growth is projected to outpace the global average. This growth is supported by strong domestic purchasing power, government economic stimulus policies, and increased foreign investment, which are positive factors for Businesses related to Construction Materials. For example, SCG Distribution & Retail is accelerating the expansion of its modern trade business for construction and building materials through Mitra 10 in Indonesia, achieving 56 branches in 2024 to serve over 1 million customers per month, with a long-term goal of reaching 100 branches by 2030. Meanwhile, SCGP is set to benefit from rising ASEAN consumption and increasing demand for packaging paper.
For SCG Chemicals (SCGC), the petrochemical industry in the region continued to face heightened competition in 2024 due to the addition of new production capacities, while demand weakened as a result of China’s economic slowdown. The company responded by accelerating efforts to drive High-Value Added Products & Services (HVA) and carefully managing EBITDA, costs, and working capital, ensuring sustained competitiveness. Looking ahead to 2025, the petrochemical cycle is showing signs of stabilization, and oil prices are expected to decline. SCGC remains committed to enhancing efficiency in EBITDA and cost management.
SCGC has also accelerated its LSP project by increasing the use of ethane gas feedstock, which helps reduce costs and enhance long-term competitiveness. The company recently secured a long-term supply agreement for approximately 1 million tons of ethane gas per year over 15 years and chartered three ethane shipping vessels under long-term contracts. SCGC plans to procure construct storage tanks and the remaining two vessels while upgrading its facilities to be ready for ethane gas by 2027. This project is funded internally through SCG’s financial resources.
SCG is expanding into new, high-potential export markets such as North America and Australia. SCG Cement & Green Solutions is accelerating exports of Low Carbon Cement, with exports expected to reach approximately 1 million tons this year. SCG Decor has exported high-strength X-PORCELAIN tiles, which have been well received, and aims to double export growth this year. Meanwhile, SCGP is exporting polymer packaging, foodservice packaging, and printing and writing paper, maintaining strong growth momentum.
Furthermore, SCG Smart Living is expanding its smart solutions portfolio, including air quality products and solar solutions under the ONNEX by SCG Smart Living, addressing both indoor air quality and cost savings through clean energy usage. The company is also continuously introducing affordable product lines to provide more options for budget-conscious consumers, covering roofing, boards, synthetic wood, and decorative exterior wall panels. Meanwhile, SCG Cleanergy is set to produce and distribute a total of 548 MW of solar power in 2024, marking a 21.5% increase from the previous year. The company aims to expand its clean energy production capacity to approximately 3,500 MW by 2030.
Thammasak concluded, “SCG continues to adapt and expand into new markets. We are confident that in 2025, we will sustain strong EBITDA management while ensuring continuous commitment to shareholder care.”
In 2024, SCG reported Revenue from Sales of 511,172 MB, marking a 2% increase from the previous year, driven by higher sales volumes from SCGC and SCGP. Profit for the year stood at 6,342 MB, reflecting a 76% decline from the previous year due to LSP’s performance and lower profit contributions from associate companies. Excluding extraordinary items in 2023, which included an impairment loss on regional cement plant assets and gains from the fair value adjustment of investments, profit for the year declined by 52% from the previous year. In Q4/2024, Revenue from Sales totaled 130,512 MB, an increase of 2% from the previous quarter, supported by higher sales volumes from SCGC. However, the company reported a loss of 512 MB for the quarter, compared to a profit of 721 MB in the previous quarter, primarily due to LSP’s performance and the recognition of full depreciation expenses for the project. In contrast, the previous quarter included a cash gain of 2,183 MB from an Interest Rate Swap (IRS) transaction recorded by SCGC.
SCG has distributed an interim dividend of 2.50 Baht per share for the first half of the year on 23 August 2024 and will pay a final dividend of 2.50 Baht per share. This dividend payment will be distributed to shareholders eligible for dividends according to the company’s regulations, based on the shareholder list as of the record date on 3 April 2025 (the ex-dividend date, or XD date, will be 2 April 2025). The dividend will be paid on 22 April 2025, and shareholders are entitled to claim the dividend within 10 years.
Key Financial Information of SCG for FY2024 and Q4/2024
SCG’s unaudited Operating Results for FY2024 reported EBITDA of 53,946 MB, driven by effective cost management in the Business Related to Construction Materials and dividend income from investments in other businesses (SCG Investment). Meanwhile, Revenue from Sales amounted to 511,172 MB, an increase of 2% from the last year, supported by increased sales volumes from SCGC and SCGP. Profit for the year stood at 6,342 MB, a decrease of 76% from the last year, primarily due to the performance of the LSP and lower profit contributions from associate companies. Excluding extraordinary items related to the impairment of cement plant assets in the region and gain from fair value adjustment of investment recorded in 2023, profit for the year declined by 52% from the last year.
In Q4/2024, Revenue from Sales was 130,512 MB, increasing 2% QoQ, driven by higher sales volumes from SCGC. The Loss for the Period was 512 MB due to LSP performance which fully realized depreciation.
Revenue from High-Value Added Products & Services (HVA) in 2024 amounted to 154,386 MB, accounting for 38% of total Revenue from Sales.
SCG Green Choice products generated revenue of 275,573 MB in 2024, representing 54% of total Revenue from Sales.
Revenue from operations outside of Thailand, including export sales from Thailand, totaled 234,400 MB in 2024, contributing 46% to total Revenue from Sales.
SCG’s total assets as of December 31, 2024, amounted to 861,502 MB, with 46% of assets located in ASEAN (excluding Thailand).
Operating Results by Business Units
- SCG Chemicals (SCGC): In 2024, SCGC reported EBITDA of 7,363 MB and a Loss for the year of 7,990 MB, compared to a profit of 589 MB in the previous year, due to increased expenses from LSP and a decline in equity income from associate companies. Revenue from Sales was 210,298 MB, an increase of 10% YoY, driven by increased sales volume from LSP. In Q4/2024, the company recorded EBITDA of 1,436 MB and a Loss for the period of 3,403 MB, compared to a loss of 1,480 MB in the previous quarter, due to higher recognized expenses from LSP. and the previous quarter included a cash gain of 2,183 MB from an Interest Rate Swap (IRS) transaction. Profit from inventory price adjustment amounted to 1,067 MB. SCGC achieved an operating rate higher than the industry average due to effective management of production facilities in Thailand and Vietnam. Revenue from Sales totaled 58,982 MB, an increase of 10% QoQ, reflecting higher sales volume.
- SCG Cement and Green Solutions: In 2024, SCG Cement and Green Solutions reported EBITDA of 11,492 MB and a Profit for the Year of 2,428 MB, an increase of 2,620 MB YoY, supported by improved management of production and energy costs. Additionally, the previous year included an impairment loss on regional cement plant assets of 2,214 MB. Revenue from Sales was 81,891 MB, a decrease of 5% YoY, due to lower demand from the household sector and delays in government budget disbursements from the prior year. In Q4/2024, the company reported EBITDA of 2,410 MB and a Profit for the Period of 238 MB, an increase of 6% QoQ, supported by efficient management of production and energy costs. Revenue from Sales amounted to 19,862 MB, a decline of 5% QoQ, reflecting weaker demand for products.
- SCG Smart Living and SCG Distribution and Retail: In 2024, SCG Smart Living and SCG Distribution and Retail reported EBITDA of 3,361 MB and a Profit for the Year of 1,087 MB, an increase of 177 MB YoY, driven by effective cost management and increased profit contributions from SCG Distribution and Retail. Revenue from Sales was 140,165 MB, a decline of 8% YoY, due to the slow market recovery. In Q4/2024, the company reported an EBITDA Loss of 20 MB and a Loss for the Period of 385 MB, impacted by lower sales volume from the household sector. Revenue from Sales was 32,904 MB, a decrease of 2% QoQ, reflecting slow market recovery and household sector demand.
- SCGP: In 2024, SCGP reported EBITDA of 16,138 MB, a decline of 9% YoY. Profit for the Year was 3,699 MB, a decrease of 30% YoY. Revenue from Sales totaled 132,784 MB, increasing 3% YoY.
- SCG Decor: In 2024, SCG Decor reported EBITDA of 3,134 MB, a decline of 4% YoY. Profit for the Year was 810 MB, an increase of 40% YoY. Revenue from Sales amounted to 25,563 MB, a decrease of 10% YoY.
Published on: Feb 3, 2025
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