Brewer Habeco reports loss for first time in 3 years

Leading Vietnamese brewer Habeco reported a loss of VND3.7 billion ($157,700) in the first quarter of this year, while Sabeco, owned by Bangkok-based ThaiBev, posted an after-tax profit of over VND1 trillion ($42.79 million), down 19% year-on-year.

It is the first time Habeco has posted a loss since the second quarter of 2020, while in the same period last year, it made a profit of VND35 billion ($1.49 million).

The brewer said profits fell as a result of falling sales due to strict controls on drunk driving as well as tightened consumer spending.

At the same time, input costs also increased sharply compared to the same period last year, such as the price of filter aids, houblon flowers, sugar, and rice. As for malt, the raw material that accounts for the largest proportion of beer production costs, Habeco said it had increased by about 50% compared to the average price in 2022.

The company's net revenue reached VND1.17 trillion ($49.9 million) in Q1, down 13% and the lowest revenue since the first quarter of 2020.

At the end of Q1, Habeco's total assets stood at VND6.58 trillion ($280.5 million), down 9% compared to the beginning of the year. Cash and bank deposits, at VND2.95 trillion ($125.9 million), accounted for 41% of total assets.

Habeco is the leading brewer in northern Vietnam, with brands including Hanoi beer and Hanoi draft beer. Its products are aimed mainly at the mid-range and lower segments, while in recent years more consumers have started opting for premium brands. This has significantly affected Habeco's market share.

Habeco is listed on the Ho Chi Minh Stock Exchange as BHN. Its share price closed on Friday at VND43,100 ($1.84).

Meanwhile, Sabeco, which holds about 40% of the beer market share in Vietnam, recorded an after-tax profit of over VND1 trillion ($42.79 million), down 19% year-on-year, on a net revenue of VND6.21 trillion ($264.78 million), down 15%.

The company said that its business results fell due tightened control on drunk driving, global economic instability, and slowing consumption.

As of March 31, 2023, its total assets had reached VND34.47 trillion ($1.47 billion), up 13% compared to the beginning of the year. Of which, cash and deposits were more than VND20.36 trillion ($867.67 million), accounting for nearly 65% of the total.

On the Ho Chi Minh Stock Exchange, the major’s SAB stock closed at VND172,000 ($7.33) last Friday.