Hanoi Beer Owner Loses for First Time in 12 Quarters
According to the financial report of the first quarter of 2023 of Hanoi Beer - Alcohol - Beverage Corporation ( Habeco - code: BHN), net revenue reached 1,173 billion VND, down 13% over the same period. However, the cost of goods sold was more than 926 billion VND, while the selling expenses were also quite high, accounting for more than 204 billion VND. This led to a sharp drop in Habeco's gross profit of 31%, to nearly 246 billion VND. The gross profit margin also narrowed to 21%.
After deducting other expenses, Habeco's profit in the first quarter of 2023 was negative nearly 4 billion VND, while in the same period last year it made a profit of more than 35 billion VND.
Thus, after 12 consecutive quarters since the second quarter of 2020, this is the first time Habeco reported a loss.
According to Habeco, sales revenue was affected by strict control policies on alcohol violations, as well as consumer spending habits that are trending downward. At the same time, input material costs increased sharply compared to the same period, leading to a negative after-tax profit of nearly VND4 billion.
Beer and wine business is facing difficulties. (Photo: DT)
At the end of the first quarter of 2023, Habeco's total assets decreased by 9% to VND 6,582 billion. Cash and bank deposits accounted for 41% of total assets, with a recorded value of VND 2,954 billion.
Regarding debt, the payables item reached 1,281 billion VND, accounting for 18% of capital sources, Habeco borrowed short-term debt of more than 80 billion VND and did not record long-term loans.
Recently, consumers tend to use high-end beer series, while Habeco mainly sells in the mid-range and low-priced beer segment. This significantly affects sales and market share.
Hanoi Vodka Company Owner Continues Losses
According to the business results of the first quarter of 2023, Hanoi Alcohol and Beverage Joint Stock Company (Halico - code: HNR) recorded a long series of losses. Accordingly, sales and service revenue reached more than 30.2 billion VND, a slight decrease compared to 30.9 billion VND in the same period last year.
After deducting expenses, Halico's after-tax profit was negative by more than VND1.2 billion, while in the same period last year, the loss was negative by nearly VND3.6 billion. Thus, since the second quarter of 2017, Halico has recorded 24 consecutive quarters of negative profit.
Regarding the financial situation, by the end of the first quarter of 2023, total assets reached 365.3 billion VND, down 200 million VND compared to the beginning of the year. Of which, equity reached more than 342 billion VND. Total debt was 23.2 billion VND, including all short-term debt payable.
According to Halico, after 2 years of the COVID-19 pandemic, domestic consumption demand has decreased, people have reduced spending, partly towards homemade, low-cost wine products. In addition, the cost of raw materials and service costs have increased, significantly affecting production and business.
In 2023, Halico continues to face difficulties, input material prices continue to increase. Halico expects that tax rates and special consumption taxes will continue to increase, affecting the company's product prices and profits.
Saigon Beer profits decrease
According to the financial report of the first quarter of 2023 of Saigon Beer - Alcohol - Beverage Corporation ( Sabeco - code: SAB), net revenue reached 6,240 billion VND, down 15% over the same period. After deducting expenses, profit reached 1,004 billion VND, down 18.7% over the same period in 2022.
According to Sabeco, business results were lower than in the first quarter of last year due to the continued weakness in the market after the Lunar New Year period. At the same time, Decree 100 continued to tighten in key cities, combined with global economic instability and slowing consumption.
As of the end of the first quarter of 2023, SAB's total assets decreased by 8.9% compared to the same period last year, to more than VND 31,400 billion, while equity increased by VND 1,000 billion.
In addition, SAB's total debt also decreased sharply from more than VND9,874 billion in the first quarter of last year, to VND5,907 billion after the end of the first quarter of 2023.
(Source: Vietnamnet)
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