Thailand’s biggest beverage firm Thai Beverage (ThaiBev) earned revenue of THB59,961 million ($1.72 billion) in Vietnam in fiscal year 2023 (Sept 2022-Sept 2023), down 5.7% year-on-year.
The Vietnam revenue included THB59,957 million (nearly $1.72 billion) from its beer business and THB4 million from its spirits business, down 5.7% and 20% year-on-year, according to the firm’s financial statements for the period.
In its home market, ThaiBev’s revenue grew 4.2% year-on-year to THB201,520 million ($5.77 billion). The results in Vietnam were the only primary market of ThaiBev with a revenue decline.
Globally, the firm’s revenue increased 2.5% year-on-year to THB279,085 million ($7.99 billion). As a result, Vietnam accounted for 21.5% of the total.
ThaiBev attributed the underperformance to lower beer sales revenue from Sabeco, the biggest beer company in Vietnam, amid the country's weak economic growth momentum.
For its global beer operation, ThaiBev made a revenue of THB120,825 million ($3.46 billion), down 1.4% year-on-year, according to the report. In particular, the Thai giant sold 2,240.4 million liters in the period globally, down 6.6%. Without Sabeco’s beer, the figure was 774.5 million liters, down 2%.
Sabeco’s figure is about 1,465.9 million liters, or 66.6% of the firm’s annual capacity of 2.2 billion liters from 26 factories.
In December, Sabeco announced that it had approved an advance cash dividend payout of 15% of par value, or VND1,500 ($0.062) per share, with the payment date set for February 7, 2024. Vietnam Beverage Company Limited, indirectly owned by ThaiBev, is set to receive VND1,030 billion ($42.4 million) from the dividend payout for its 53.59% stake in the beer maker.
ThaiBev spent almost $5 billion on buying a 51% stake in Sabeco in December 2017. With Sabeco’s latest dividend payout, ThaiBev is set to receive over VND9,280 billion ($382.2 million) in accumulative dividend payments from Sabeco over six years.