Siam City Cement Achieves 79% Net Profit Growth in Q3 2024

Efficiency initiatives, demand recovery, and sustainability efforts drive significant gains in key markets.

Siam City Cement Group (SCCC) reported a remarkable 79% year-on-year increase in Q3 2024 net profit, reaching THB 790 million. EBITDA also rose by 15% during this period, driven by reduced input costs, cost-saving measures under the “FIT+” initiative, and strong performance in Vietnam and Sri Lanka.

Operational Gains and Strategic Initiatives

Group CEO Ranjan Sachdeva highlighted the success of efficiency and cost-control efforts. “The ‘FIT+’ program has delivered solid operational improvements, helping us achieve these results despite ongoing market challenges,” he said.

Vietnam and Sri Lanka Shine:

• Vietnam recorded a 234% EBITDA increase, thanks to market recovery, pricing strategies, and a higher Thermal Substitution Rate (TSR) of 43%.
• Sri Lanka posted a 270% EBITDA growth, supported by demand recovery, lower fuel costs, and favorable currency exchange rates.

Sustainability and ESG Commitments

SCCC continued advancing its ESG goals, with 89% of cement sales now coming from low-carbon products. The Group achieved a 39% year-on-year improvement in TSR, reducing fossil fuel use through alternative fuels. In Thailand, SCCC’s solar power project, a collaboration with B.Grimm Power, will generate 83 MW by September 2025.

“We remain committed to sustainability,” said Mr. Sachdeva. “Our focus on low-carbon solutions and renewable energy underscores this.”

Market-Specific Highlights

Thailand: Bulk cement demand stayed steady due to government infrastructure projects. However, the bag segment faced challenges from high household debt and flooding, leading to a 7% decline in EBITDA.

Bangladesh: Sales volume and prices fell due to political instability and flooding. Despite cost reductions, EBITDA dropped by 32%.

Cambodia: Operational efficiencies and favorable raw material prices resulted in a 5% EBITDA rise, with TSR reaching 30.2%.

Business Segment Performance

SCCC’s concrete and aggregates segment saw a 21% year-on-year EBITDA increase, driven by high-margin sales and government project demand. In waste management, net sales rose 23%, but EBITDA decreased 17% quarter-on-quarter due to higher production costs.

In light building materials, high inventory levels and delayed project launches slowed sales. Despite a 10% drop in EBITDA, cost-saving measures minimized losses.

Strategic Developments

SCCC recently acquired 61.44% of Lanna Resources, making it a subsidiary. Financial consolidation is underway, with more updates expected next quarter.