Hanoi Beer's profit after tax decreased by 30% in 2023, to a 15-year low, due to a decline in purchasing power as localities increased control of alcohol levels.
The recent consolidated financial report shows that Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (Habeco - BHN) had revenue in the fourth quarter of 2023 decrease by nearly 9%, reaching about 2.246 billion VND.
The management board said the reason came from increased control of alcohol levels in the last months of the year. In addition, the decline in revenue is also due to people's reduced consumption trends in a volatile socio-economic context and fierce competition in the beer market.
In total, Habeco's pre-tax profit was more than 89 billion VND, down 7% over the same period. Thanks to reduced corporate income tax expenses, profit after tax increased to 23%.
Cumulatively for the whole year, the company has revenue of nearly 7.760 billion VND and profit after tax of 355 billion VND, down about 8% and 30% respectively compared to 2022. If excluding the 2021 epidemic peak period, this is the profit level. Habeco's lowest since 2008. However, this number also exceeds 60% of the year's profit plan.
Not only Habeco, backward business results are a common denominator in the beer industry. Hanoi - Hai Duong Beer (HAD) suffered a loss in the last quarter of 2023, causing the whole year's profit to decrease by nearly half. The reason is that the cost of input materials increased, while consumption decreased sharply. Halico (HNR) owns Hanoi Vodka, reporting losses for 8 consecutive years as costs increased but revenue decreased.
The State's management moves to reduce the harmful effects of beer and alcohol are having a great effect. According to the Vietnam Beer - Alcohol - Beverage Association (VBA), the beer industry, after a long period of being affected by social distancing measures, has suffered additional impacts from Decree 100 with sanctions. very severe, causing heavy losses to businesses' production and business activities. In the near future, if the revised Law on Special Consumption Tax, which includes changes to the calculation method and adjustment of tax rates on alcohol and beer, is implemented, the situation for businesses will become even more difficult.
This year's Tet season also did not record grocery stores, agents or supermarkets stocking beer but only imported goods in moderation. Companies also coordinate to increase promotions and increase discounts to reduce prices, but in general, purchasing power is much lower than usual.
Siddhartha
