Siam City Cement posts 1Q23 revenue of THB1188m in Vietnam

Thailand-based Siam City Cement Co (SCCC) has posted a revenue of THB1188m (US$34.5m) from its Siam City Cement Vietnam business in Vietnam in the first quarter of 2023. This represents a 33.6 per cent YoY drop.

EBITDA of the Vietnamese operations was -THB52m in the 1Q23, compared with THB371m in the 1Q22. As a result, the EBITDA margin declined from 20.7 per cent in the 1Q22 to -4.4 in the 1Q23.

However, signs of recovery have been seen, according to the company, with moderate growth in the future expected, subject to the real estate sector’s recovery. But for the rest of the year, tight liquidity in the Vietnamese market is forecast to continue impacting on the demand for building materials in the country.

SCCC operates 5.2Mta of cement capacity and 1.6Mta of clinker capacity in Vietnam, which was the company’s largest overseas market in 2022 with a revenue of THB8442m, up 42 per cent YoY. In December 2022, Siam City Cement Vietnam started construction of its second production line, located in Ba Ria-Vung Tau province. The Thi Vai grinding project is valued at US$35.7m and is the second investment in the southern coastal province.