{"id":3971,"date":"2025-10-31T10:55:27","date_gmt":"2025-10-31T03:55:27","guid":{"rendered":"https:\/\/thereporter.asia\/eng\/?p=3971"},"modified":"2025-10-31T10:55:27","modified_gmt":"2025-10-31T03:55:27","slug":"scg-3q2025-strong-ebitda","status":"publish","type":"post","link":"https:\/\/thereporter.asia\/eng\/2025\/10\/scg-3q2025-strong-ebitda\/","title":{"rendered":"SCG Navigates Q3 Loss with Strong EBITDA, Eyes Vietnam Pivot"},"content":{"rendered":"

SCG (Siam Cement Group<\/a>) announced its Q3 2025 financial results, painting a picture of profound resilience against a backdrop of severe global and domestic economic recession. Despite posting a net loss of 669 million THB for the period, the conglomerate showcased exceptional financial fortitude, delivering a robust EBITDA of 14,191 million THB<\/b>. CEO Thammasak Sethaudom, warning that economic headwinds will likely persist into 2026, unveiled a comprehensive 4-pronged strategy.<\/h3>\n

This offensive plan centers on iron-clad financial discipline, aggressive cost reduction via AI and Robotics, production centralization, and a decisive, full-scale penetration of the high-growth Vietnam market, all while expanding its “Smart Value” product portfolio to capture a value-conscious consumer base.<\/p>\n

The “Perfect Storm”: Navigating Unprecedented Economic Headwinds<\/h3>\n

The operating environment for SCG in the third quarter was, by all accounts, exceptionally challenging. Mr. Thamasak Sethaudom described the confluence of factors as a “Perfect Storm,” with both global and Thai economies under simultaneous, severe pressure.<\/p>\n

Externally, persistent geopolitical friction, including protracted trade wars, U.S. tariffs, and the unresolved Russia-Ukraine conflict, continue to send shockwaves through global supply chains and energy markets. This instability is compounded by a bleak forecast from the International Monetary Fund (IMF), which projects global GDP growth to decelerate to just 3.2% in 2025 and 3.1% in 2026.<\/p>\n

Thailand’s domestic situation offers no respite. The nation is grappling with its own set of formidable challenges, headlined by a 5% appreciation of the Thai Baht<\/b>, marking a four-year high. This appreciation severely erodes the competitiveness of Thailand’s export-driven economy. Furthermore, investment, tourism, and\u2014most critically\u2014domestic consumption have all slowed markedly, reflecting deep-seated fragility in public purchasing power.<\/p>\n

This domestic weakness is reflected in forecasts placing Thailand’s 2025 GDP growth at a mere 2%, lagging significantly behind the ASEAN regional average. Projections for 2026 are even more pessimistic, anticipating a further slowdown to just 1.6%. SCG’s leadership anticipates this perfect storm of external volatility and internal stagnation, including global economic polarization and a persistently strong Baht, will continue to buffet the economy well into the next year.<\/p>\n

Decoding the Q3 Paradox: A Loss in Name, Strength in Substance<\/h3>\n

SCG’s Q3 2025 financial statement is a study in contrasts, demanding a look beneath the headline numbers to grasp the true health of the business.<\/p>\n

The company reported revenue from sales of 121,793 million THB<\/b>, a 2% decrease from the previous quarter and a 5% drop year-on-year. This decline occurred despite an increase in overall sales volume, notably boosted by the new Long Son Petrochemicals (LSP) complex in Vietnam coming online. The revenue dip was primarily driven by depressed sales prices across the region.<\/p>\n

The headline figure was the net loss for the period of 669 million THB<\/b>. However, this figure is fundamentally misleading as it is dominated by non-cash accounting adjustments. When excluding non-recurring items, SCG posted a normalized profit from operations of 774 million THB<\/b>.<\/p>\n

The primary driver of the net loss was a significant 1,348 million THB inventory loss<\/b> booked by the chemicals business (SCGC). This was a direct, and anticipated, consequence of the LSP plant’s initial ramp-up. The new facility had to build up necessary inventory to serve the market; when global chemical prices subsequently fell, accounting rules required a write-down of this inventory’s value.<\/p>\n

The real<\/i> story of the quarter, and the clearest indicator of core operational health, is the company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which soared to 14,191 million THB<\/b>. This represents a remarkable 44% increase year-on-year<\/b>, signaling powerful cash generation and robust underlying profitability despite the recessionary environment.<\/p>\n

A Financial Fortress: The 9-Month View<\/h3>\n

This Q3 strength is not an anomaly. For the first nine months of 2025, SCG’s performance has been solid:<\/p>\n