Brewer giant Sabeco scores $178 mln profit in 9 months

Sabeco, owned by Thailand’s largest beverage maker ThaiBev, reported an after-tax profit of VND4,424 billion ($178 million) in the first nine months of the year, up 75% year-on-year.

The company's net revenues reached VND24,950 billion ($1 billion) during the period, up 44%, of which revenues from beer sales hit VND22,129 billion, or 90% of the total.

After nine months, the Ho Chi Minh City-based brewer had completed nearly 72% of the year's revenue target and 97% of its profit plan.

Sabeco's sales of raw materials, beverages, wine and acoholic drinks also recorded positive growth over the same period.

Expenses related to sales and business management activities, especially advertising and promotion, sharpy increased. In the nine months, the company spent more than VND1,800 billion ($72.45 million) on advertising and promotion, continuing as one of those spending the biggest on such activities.

In the third quarter, the leading brewer in Vietnam posted a net revenue and after-tax profit of VND8,635 billion ($347.6 million) and VND1,395 billion ($56.15 million), two times and three times year-on-year, respectively.

At the end of Q3, the company's total assets increased by 11% compared to the beginning of the year, reaching VND33,949 billion ($1.37 billion).

Notably, along with VND2,843 billion ($114.4 million) in cash and cash equivalents, the company had short-term financial investments of VND20,620 billion (830 million), up 21% compared to the beginning of the year.

On the Ho Chi Minh Stock Exchange, the major’s SAB stock closed at VND193,000 ($7.8) at the closing session on Friday.

Vietcombank Securities (VCBS) estimated Sabeco's revenue in 2022 at VND33,000 billion ($1.33 billion), up 25% year-on-year and profit at VND4,224 billion ($170 million), up 7.5%.

According to top brober SSI Securities, Sabeco's gross profit margin remains stable in the context of inflation as the company has signed long-term purchase contracts for key materials and the average selling price has increased by nearly 10%.