Thai conglomerate SCG has announced its operating results for the first quarter of this year, showing a recovery across all business units, with increased sales and profits boosted by the revival of tourism and China's border reopening.

SCG's revenue saw a yearly increase of 5 per cent to US$3.8 billion and its profit hit $487 million in the period.

However, the company's revenue from sales stood at $296 million in Q1, a decrease of 26 per cent year-on-year due to the chemicals business and lower export from Thailand.

In terms of SCG’s operation in ASEAN, the revenue from sales in Q1 recorded a 20 per cent decrease year-on-year, amounting to $653 million or equivalent to 17 per cent of SCG’s total revenue from sales. This includes sales from both local operations in each ASEAN market and imports from the Thai operations.

For the ASEAN market, recovery appears to need more time, the company said, adding that high interest and inflation rates continue to impact the real estate sector in some countries.

Meanwhile, the global economy remains fragile, particularly in the US and Europe, with risks of an economic slowdown due to the inflation crisis, high interest rates, and fluctuations in energy prices.

As of March 2023, the total assets of SCG amounted to $27.1 billion, while the total assets of SCG in ASEAN topped $12.1 billion or 45 per cent of its total consolidated assets.

SCG now has a total of 25 companies across Viet Nam, recruiting 15,500 employees. The company's flagship project, Long Son petrochemical complex (LSP), has begun trial operations, producing plastic resins for the Vietnamese market.

To propel long-term growth, SCG is accelerating its focus on SCG Cleanergy, an end-to-end clean energy business that continuously grows in response to global trends in environmental protection, the company said in a statement.

It added that successful cost reduction is achieved through the increased use of alternative fuels and solar energy. — VNS