SCG revenue in Philippines dips 8% in Q1

MANILA, Philippines — Thai conglomerate Siam Cement Group (SCG) generated lower revenue in the Philippines in the first quarter due to the decline in global price of packaging paper.

SCG said revenue in the Philippines, which cover sales of both local products and imports from Thai operations, declined eight percent year-on-year to P4.411 billion in the first quarter.

The firm attributed the drop in revenue to lower price of packaging paper in the world market.

SCG operates in the country through the following subsidiaries: Mariwasa Siam Ceramics Inc., SCG Marketing Philippines Inc., SCG Trading Philippines Inc. and United Pulp and Paper Co.

Despite the decline in revenue in the January to March period, SCG Philippines country director Anuvat Chalermchai said the company remains optimistic of seeing growth, banking on growing demand for  cement and building materials.

To strengthen the growth of the cement-building materials business in the country, Mariwasa Siam Ceramics, one of the leading ceramic tile providers established by SCG and Mariwasa, has been importing ceramic and porcelain tiles, as well as sanitary ware products to expand its offering.

At present, the company offers cement, roofing products, and SCG Smartboard and SCG Smartwood – fiber-cement boards and wood substitute that can be applied for the ceiling, wall and floor.

The firm is also developing an omni-channel platform which makes it easier for customers to gain access to information on products.

With the launch of www.scgshop.com.ph last year, customers are already able to purchase SCG products online.

Earlier, Chalermchai said SCG expects its sales in the Philippines to grow faster than the country’s gross domestic product and post at least 10 percent growth this year as the firm benefits from favorable economic conditions with the elections expected to bring in additional spending, and the government set to continue implementing infrastructure projects under the Build Build Build program.

Last year, SCG’s net sales reached P18.54 billion.