The "giant" of sarsaparilla, Chuong Duong, is sinking into losses.

Chuong Duong Beverage Company (owner of the Chuong Duong sarsaparilla brand - stock code SCD) announced its Q3 2024 financial report with revenue exceeding VND 36.2 billion, an increase of nearly 66% compared to the same period in 2023. However, the company still incurred a net loss of VND 12.4 billion, marking its 15th consecutive quarter of losses.

The company that owns Chuong Duong soft drink is mired in losses.

In the first nine months of 2024, the owner of Chuong Duong soft drink company achieved revenue of nearly 135 billion VND, one and a half times higher than the same period last year, but incurred a net loss of nearly 45 billion VND. The total accumulated loss up to the end of September was nearly 245.6 billion VND. The company currently has nearly 609 billion VND in loans and financial lease liabilities, with almost three-quarters being short-term loans, i.e., those due within the next 12 months from the date of the financial statement.

Chuong Duong Beverage Company was once the largest beverage factory in Southern Vietnam, and its Chuong Duong sarsaparilla product was very popular, helping the company maintain stable profits of 20-30 billion VND per year from 2007 to 2016. However, business operations in recent years have been severely affected by rising input costs and increased financial expenses. The leadership of Chuong Duong Sarsaparilla has admitted that the company's distribution and sales network has declined along with the industry trend, and the company lacks the resources and capabilities to recover as quickly as the market leaders.

Sá xị Chương Dương is currently a subsidiary of Saigon Beer, Alcohol and Beverage Corporation ( Sabeco ) responsible for beverage production. Sá xị Chương Dương's charter capital is only 85 billion VND, of which Sabeco holds 62.06% of the shares.

Due to continuous losses over the three years from 2021 to 2023, in early May, the company's SCD shares were compulsorily delisted by the Ho Chi Minh City Stock Exchange and subsequently transferred to the UPCoM market. However, trading of these shares is currently restricted, only allowed on Fridays. SCD shares have experienced illiquid trading sessions, with no transactions, and are currently trading at 16,000 VND per share.

Source: https://thanhnien.vn/ong-lon-sa-xi-chuong-duong-chim-trong-thua-lo-185241022113352071.htm