Siam City Cement sales down slightly

SET-listed Siam City Cement Plc, Thailand’s second-biggest cement maker, posted a slight fall of 2% in net profit in the first quarter in line with sluggish demand for cement.

It had net sales of 8.26 billion baht, down 2% from 8.42 billion baht in the same period of last year.

Its net profit also fell 2% from 1.4 billion baht to 1.36 billion baht, said chief executive Siva Mahasandana.

“The company maintained a solid gross margin at 46% as a result of continued cost reduction initiatives and efficient operations, while through acquisitions the company is able to enter new market segments in Thailand as well as the fast-growing market in Bangladesh,” he said.

The company has announced it plans to buy a full stake in Mexican company Cemex’s operations in Thailand and Bangladesh. The move is part of Cemex’s plan to raise funds to pay its debt burden.

The transaction is due to be completed this month, Mr Siva said.