Thailand: SCCC profits shrink

Siam City Cement Co (SCCC) posted a smaller profit for 9M16 as a result of higher financing costs, spending on acquisitions and annual shutdowns.

CEO, Siva Mahasandana, said the net sales for 9M16 stood at THB24.8bn (US$708.4m), a five per cent increase from the THB23.7bn registered in the same period of 2015. Net profit fell 16 per cent YoY from THB3.6m to THB3m in the period under review.

SCCC recently acquired a Sri Lankan cement manufacturer Holcim (Lanka) Ltd with the deal completed on 10 August 2016. The company has since been renamed Siam City Cement (Lanka) Ltd and immediately contributed about five per cent on year of revenue growth.

For 3Q16 the company posted a 44 per cent drop in net profit, from THB823m in 2015 to THB455m this year.

The Office of Industrial Economics reported that domestic cement consumption registered a decline of one per cent YoY to 25.8Mt for 9M16.