SET-listed Siam City Cement Plc (SCCC), Thailand's second-largest cement maker, has posted a second-quarter net profit of 1.47 billion baht, down by 9% year-on-year and 23% quarter-on-quarter.
The decline was attributed to foreign exchange losses and declining equities revenue from associated companies.
Net sales edged up 4.4% year-on-year to 7.8 billion baht. However, they fell by 10% quarter-on-quarter on seasonal effects. First-half net profit increased by 19.2% to 3.38 billion baht on sales of 16.5 billion, up by 10%.
Chief executive Vorathep Rangchaikul said the sales growth was due to increased capacity for exports and timely revenue expansion in the building materials product segment.
"Net profit and profitability margins improved further as energy-saving initiatives and operational efficiencies gathered momentum in containing costs. Nevertheless, production costs were affected by higher electricity tariff rates," he said.
Mr Vorathep said his company continued to benefit from its focus on growing its core activities while offering new products.
The economy is expected to improve in the second half, and SCCC is well-positioned to sustain and grow its profitability through business expansion beyond this year, he said.
Earnings per share for the six-month period improved to 14.67 baht from 12.32 baht in the same period last year.
Kim Eng Securities said SCCC's first-half earnings remained satisfactory despite it being the low season.
"With energy-saving initiatives and operational efficiencies, gross profit margin remained healthy at 46.8% compared with 47.2% in the first quarter and 48.1% in the same period last year," said the brokerage, adding the first-half net profit accounted for 61% of its full-year estimate.
Building materials analyst Surachai Pramualcharoenkit said the second-half outlook was relatively flat from last year.
SCCC shares closed yesterday on the SET at 448 baht, down 10 baht, in trade worth 193 million baht.