SCG has announced its financial results for the first quarter of 2019, indicating a 5% drop in sales due to fluctuations in oil prices and a slowdown in the global economy. The company plans to revise its strategy, focusing on comprehensive packaging solutions and retail in the cement and construction products sector.

Mr. Rungroj Rangsiyopas, President and CEO of SCG, revealed that the consolidated financial statement for Q1 2019 showed sales revenue of 112,379 million baht, a decrease of 4% from the previous quarter and a 5% decline compared to the same period last year. This was attributed to lower selling prices of chemical products due to weakened global market demand. However, the company recorded a profit of 11,662 million baht, an 11% increase from the previous quarter due to improved performance across all business groups, although it was a 6% decrease from the same period last year due to reduced performance in the chemicals business resulting from lower product price margins.

In Q1 2019, SCG's sales of high value-added products and services amounted to 45,464 million baht, accounting for 40% of total sales, similar to the same period last year. The company invested over 1,439 million baht in research and development for innovation, representing 1.3% of total sales.

In addition to its operations in Thailand, SCG reported sales revenue in the ASEAN region of 26,784 million baht, accounting for 24% of total sales, a 1% decrease from the same period last year. Sales revenue from other regions was 16,966 million baht, representing 15% of total sales.

As of March 31, 2019, SCG's total assets were valued at 598,386 million baht, with 27% of assets located in ASEAN.

All of SCG's business groups continue to pursue strategies for strong growth while responding to rapidly emerging challenges. In the packaging business, SCG aims to become a Total Packaging Solutions Provider, expanding its production base in ASEAN, particularly in markets with continuous growth opportunities. This includes developing innovations and technologies that enhance the value of products, services, and production processes to meet customer needs and consumer usage, as well as advancing the concept of a circular economy through the SCG Circular Way, maximizing resource utilization and facilitating easy recycling of used packaging or reducing raw material usage while maintaining the quality of packaging, such as developing health-safe paper straws that can last up to 4 hours, special-coated paper bags that prevent moisture, and mono-material plastic packaging using the same material in multiple layers.

In the cement and construction products business, SCG has partnered with expert partners to elevate its growing retail business, enabling franchise networks such as SCG Home, Boonthavorn, and SCG HOME SOLUTION to meet the needs of homeowners and contractors comprehensively. Customers can conveniently purchase products and calculate prices online for over 10,000 items, resulting in a doubling of sales. This initiative will evolve into a unified data connection between offline and online through “SCG HOME,” where customers can search for information or purchase products and services anytime, anywhere, fulfilling the needs of every family member. For instance, SCG Smart Living offers modern technology that connects various systems within the home via IoT, and SCG Solar Roof provides energy-saving solutions with solar roofs and solar-powered carports. Interested customers can explore these innovations and more at the “Architect ’62” event from April 30 to May 5, 2019, at Challenger Hall, Impact Muang Thong Thani.

Additionally, SCG is developing its international trading business, SCG International, by collaborating with partners to provide customers with comprehensive solution services and enhancing logistics to meet the demands of both the ASEAN and southern China markets using modern technology.

In the chemicals business, SCG continues to implement its comprehensive petrochemical project, LSP, in Vietnam as planned, while also developing high value-added products and services that meet customer and industry needs. For example, in collaboration with the Provincial Waterworks Authority, SCG has elevated the standard of water supply through large pipes under the sea to Koh Samui for the first time in Thailand, addressing water scarcity issues and improving the quality of life for consumers using PE112 plastic pipes, a world-leading innovation developed by SCG that withstands high pressure.

SCG is also promoting the use of digital technology to enhance business efficiency, such as implementing Blockchain Corda R3 as a digital platform for the procure-to-pay process with partners, marking the first comprehensive implementation in the world. This has made significant progress, especially in the chemicals and packaging businesses, helping to reduce costs in the procure-to-pay process by up to 70%.