Sabeco’s arm SaiGon-BacLieu Beer posts sharp Q4 loss as sales weaken and provisions rise

SaiGon-BacLieu Beer JSC (UPCoM: SBL), a subsidiary of ThaiBev-controlled brewer Sabeco (HoSE: SAB), reported a net loss of over VND1.3 billion ($49,500) in Q4/2025, marking its heaviest quarterly loss in over two years.

The result contrasts sharply with Q3, when the brewer recorded net profit of VND2.2 billion ($83,770), up 837% year-on-year.

In Q4/2024, the company posted a net profit of VND1.4 billion ($53,300).

Net revenue in Q4 fell 21% from a year earlier to below VND35 billion ($1.33 million). Gross margin narrowed significantly to 7.6% from 12.5% in the same period of 2024.

Cost pressures further eroded profitability. Administrative expenses surged to nearly VND3 billion ($114,220), up 33.2% year on year, while selling expenses edged down only slightly by 3.8% to VND1.7 billion.

For the full year 2025, SBL generated net revenue of VND116 billion ($4.42 million), down 17.3% from 2024. Net profit hit nearly VND647 million ($24,630), down 67%.

Despite the sharp drop, the company exceeded its 2025 profit target, which had been set at just VND16 million ($609.2).

In its explanation to the Hanoi Stock Exchange (HNX), the company attributed the earnings volatility mainly to lower delivery volumes compared with the same period last year, reflecting weaker conditions in Vietnam’s beer consumption market.

During Q4, the company made a VND1.8 billion ($68,530) provision for slow-moving spare parts inventory and an additional VND1.2 billion ($45,690) provision for wages. These provisions directly increased costs and weighed heavily on quarterly earnings, it elaborated.

Beyond cost pressures, Saigon Beer-Bac Lieu’s results were also affected by its highly concentrated revenue structure. In Q4, more than 95% of the company’s revenue was generated from transactions with Sabeco.

This reflects the ownership structure, as SBL’s largest shareholder, WSB, which holds a 20% stake, is a Sabeco-controlled entity.

While this close relationship helps ensure stable output, it also makes Saigon Beer-Bac Lieu more vulnerable to fluctuations in consumption volumes and distribution policies set by Sabeco, particularly as Vietnam’s beer market is slowing down.

SAB shares closed down 2.67% to VND51,100 ($1.95) each on Monday.