Thai-controlled brewer Sabeco sees sales, profit grow after troublesome 2023

Ho Chi Minh City-based Sabeco, which is 53.59% owned by Thai-controlled Vietnam Beverage Co. and 36% by the industry ministry, reported increases in both revenue and profit in Q1/2024 despite being hard-hit by a campaign against drunk driving.

The brewer earned a consolidated net profit of VND997.27 billion ($39.3 million) in Q1, up 3.1% year-on-year, the firm’s consolidated financial statements showed.

Its revenue reached VND7,183.5 billion ($283 million), up 16.6% year-on-year.

Sabeco attributed its Q1 gains to improved demand thanks to a stronger national economy despite the strict implementation of Decree 100, dated in 2019, which imposes heavy fines for driving under the influence of alcohol.

Net revenue rose on the back of higher volume and price increases made last year. This also resulted in a higher net profit for Q1 despite decreases in lower interest income and profits from associates, the firm said in a filing to the Ho Chi Minh Stock Exchange (HoSE).

For 2024, the brewer aims to earn a net profit of VND4,580 billion ($180.5 million) on revenue of VND34,397 billion ($1.35 billion), up 7.6% and 12.9% year-on-year.

In 2023, it saw revenue drop 13% year-on-year to VDN30,461 billion ($1.2 billion), while its net profit fell 21% to VND4,118 billion.

Sabeco plans to spend VND4,489 billion ($176.87 million) on paying a cash dividend of VND3,500 a share for 2023.

With more than 687 million Sabeco shares, listed on the HoSE as SAB, Vietnam Beverage Co., a unit of ThaiBev, will pay VND2.4 trillion ($94.7 million) in its 2023 dividend.

SAB shares closed up 0.53% at VND57,000 ($2.25) apiece on Monday.