The Siam Cement Public Company (SCC) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong operational performance and cash flow, with EBITDA from operations up 22% quarter-on-quarter to THB 11,752 million and total EBITDA at THB 12,889 million, driven by restructuring, cost savings, and improved competitiveness across business units.

• Net profit reached THB 1,099 million, with significant improvement when excluding LSP operations; non-LSP profit was THB 4,019 million.

• Net working capital reduced by THB 3,668 million, supporting net debt reduction to THB 290,504 million, and interest expense dropped to THB 2,829 million.

• Continued focus on cash flow, working capital reduction, deleveraging, and cost-saving initiatives.

• Gross profit margin remained stable, but profit from operations and net profit declined due to higher administrative expenses and lower share of profit from joint ventures.

Financial highlights

• Sales revenue declined 5% quarter-on-quarter to THB 124,392 million and was flat year-on-year, mainly due to LSP shutdown and lower petrochemical volume.

• EBITDA decreased 15% quarter-on-quarter due to seasonal dividend in the previous quarter, but EBITDA from operations rose 22% quarter-on-quarter.

• Net working capital reduced by THB 3,668 million in Q1, supporting further net debt reduction to THB 290,504 million.

• Interest expense dropped to THB 2,829 million.

• Q1 CapEx was THB 6,097 million, with annual guidance of THB 30,000 million.

Outlook and guidance

• Expect continued growth in Thailand’s cement market (2–3%) led by government projects, with ASEAN growth also anticipated; Q2/2025 expects wider margins from lower feedstock costs but demand challenges persist due to tariff uncertainty and weak global demand.

• Ongoing cost reduction, expansion of low-carbon cement, and increased alternative fuel usage.

• Monitoring global trade tensions; direct U.S. tariff impact minimal, but indirect effects on regional demand are a concern.

• Flexible supply chain and product segmentation strategies to mitigate trade war risks.

• No material impact from new global minimum tax rules for Q1 2025.