Siam Cement Groups revises down 2024 targets

A slowdown in the Thai economy has prompted Siam Cement Group (SCG) to lower its revenue expectations for 2024. The company had forecast growth of 20 per cent this year but has revised this down to 10 per cent, reports the Bangkok Post, as pressures on the domestic economy and poor petrochemical sales hit home. Although the company recorded revenue of THB252.4bn (US$6.9bn) in the opening six months of 2024, putting it on a par with the same period in the previous year, profit over the same time frame was down 75 per cent at THB6.1bn.

According to the company, despite stronger sales by its subsidiaries, SCG Chemicals and SCG Packaging, sales in its cement and construction sectors declined on the back of weak market conditions across the country. Over the six-month period, cement and green solutions accounted for just 16 per cent of SCG’s sales, compared to 39 per cent for its chemicals subsidiary and 27 per cent for its packaging business. 

The second half of 2024 is expected to remain challenging with SCG opting to shift its focus to businesses with strong growth potential such as its solar energy solutions. It will also concentrate on energy cost management within its cement business, which has increased the share of alternative fuels in its total fuel mix to 47 per cent. To further support its CO² emissions reduction strategy, the company has also announced that it will no longer producerregular building markets and focus instead on green construction products.