Saigon Beer Company's profits plummet

Sabeco , owner of Saigon Beer, had a profit of more than 1,000 billion VND in the third quarter, down 10% compared to the previous quarter and down more than 20% compared to the same period last year.

Saigon Beer - Alcohol - Beverage Corporation (Sabeco) explained that the low business results of the last quarter were due to increasingly fierce competition, low consumer demand due to economic instability, and high input material costs. Meanwhile, the company was not able to cut down much on costs such as management and sales.

In the third quarter, Sabeco's revenue decreased by 14% compared to the same period in 2022, down to about VND7,500 billion. The company recorded a profit after tax of VND1,074 billion, down 23% compared to the third quarter of 2022.

In the first 9 months of the year, Saigon Beer’s revenue decreased by 12%, to more than VND22,100 billion, and its after-tax profit also decreased by 26%, to nearly VND3,300 billion. The company said that this decrease was due to the strict implementation of Decree 100 throughout the first quarter, in addition to the reasons mentioned above.

Thus, after 9 months, Sabeco has only achieved nearly 55% of the revenue plan and 57% of the profit target for the whole year. At the beginning of the year, the company's leaders set these targets with the ambition of establishing a new peak. They assessed that the Vietnamese beer industry is facing a golden opportunity when people's incomes are increasing rapidly, plus great potential from the non-alcoholic beer segment and exports.

However, after reaching a peak profit of nearly VND1,800 billion in the second quarter of 2022, the beer company's profits have continued to decline. In the middle of this year, many securities companies also forecast that Sabeco's revenue and profit this year will hardly meet expectations because the beer industry is growing slowly because consumers are "tightening their belts".

Vietcombank Securities Company estimates Sabeco's revenue will increase by only about 6% instead of 15% as planned, reaching about 37,000 billion VND. Similarly, SSI Securities Company estimates Sabeco's revenue and profit will only increase by about 4.7% and profit will increase by 5.2%.

Earlier this month, Sabeco also appointed a new CEO, Lester Tan Teck Chuan, to replace Bennett Neo Gim Siong, who ended his five-year term in Vietnam.

Mr. Lester Tan, a Singaporean national, has over 28 years of experience in the beer and beverage industry in Asian markets, including Thailand, Myanmar, Mongolia and Singapore. Prior to his leadership role at Sabeco, he was the general manager of beer at ThaiBev PLC, responsible for the Thai market from 2020 to 2023.

Anh Tu

Source link