SCG, a leading conglomerate in Southeast Asia, reported steady earnings before interest, taxes, depreciation and amortization (EBITDA) of P87,917 million in 2024, matching its 2023 performance.

President and CEO Thammasak Sethaudom attributed this to effective management amidst a challenging economic environment, including a slowdown in the petrochemical cycle, geopolitical tensions, volatile energy costs, and high interest rates.

SCG's reinforcement measures, implemented in late 2024, focused on working capital management, operational restructuring, and controlled capital expenditure, yielded positive results. Working capital decreased by approximately P10,613 million year-on-year, operations were streamlined, and investments prioritized high-return projects.

Net debt decreased by P28,718 million from the previous quarter, resulting in a net debt-to-equity ratio of 0.7 times. The company ended the year with cash reserves of P91,289 million.

SCG is positioned to benefit from projected economic recovery in ASEAN, where GDP growth is expected to exceed the global average, driven by domestic demand, government stimulus, and foreign investment. SCG Distribution & Retail is expanding its Mitra 10 modern trade format in Indonesia, aiming for 100 branches by 2030. SCGP (SCG Packaging) is also poised to benefit from rising ASEAN consumption.

Meantime, SCG’s chemicals business (SCGC) faced challenges in 2024 due to increased competition and weakened demand.  SCGC prioritized High-Value Added Products & Services (HVA) and managed EBITDA, costs, and working capital.

With signs of stabilization in the petrochemical cycle and anticipated declines in oil prices in 2025, SCGC is focused on enhancing EBITDA and cost management.  The company has accelerated its Long Son Petrochemicals (LSP) project in Vietnam.

SCG is also pursuing growth in new export markets, including North America and Australia. SCG Cement & Green Solutions is increasing exports of Low Carbon Cement, targeting approximately one million tons this year. SCG Decor and SCGP are also expanding exports.

Furthermore, SCG is investing in smart living solutions and clean energy. SCG Smart Living is expanding its portfolio, while SCG Cleanergy is increasing its solar power capacity, aiming for 3,500 MW by 2030.

In 2024, SCG reported Revenue from Sales of P833,070 million, a 2 percent year-on-year increase. However, profit declined by 76 percent  to P10,336 million due to the LSP project and lower contributions from associate companies.  Fourth-quarter 2024 Revenue from Sales increased by 2 percent from the previous quarter, but the company reported a loss of P834 million.

SCG's ASEAN operations (excluding Thailand) generated Revenue from Sales of P223,378 million in 2024, a 12 percent increase, contributing 27 percent to SCG's total revenue. In the Philippines, Revenue from Sales reached P19,356 million, a 45 percent increase.

SCG Philippines introduced the lightweight Q-con block to the Philippine market and showcased sustainable building solutions at NATCON-CONEX 2024. The company also expanded its retail presence with new CTM stores and partnered with Urban Farmers PH on urban farming initiatives.