ThaiBev-controlled brewer Sabeco’s 2024 profit rises 5.6% on stronger demand

Ho Chi Minh City-based brewer Sabeco, controlled by Thai Beverage, posted a net profit of VND4.49 trillion ($179.2 million) in 2024, up 5.6% year-on-year, despite Vietnam’s strict zero-alcohol driving law.

Last year, Sabeco (HoSE: SAB) recorded a net revenue of VND31.78 trillion ($1.27 billion), up 4.6% from the previous year, achieving 92.4% of its target, according to its 2024 earnings report.

Notably, Q4 revenue rose 5% to a nearly two-year high of VND8.93 trillion ($356.14 million), driven by increased demand during the Lunar New Year (Tet) holiday.

Sabeco’s general director, Tan Teck Chuan Lester, attributed this growth to stronger consumer demand despite the strict enforcement of the local zero-alcohol driving law.

Of the total revenue, beer sales contributed VND28.08 trillion ($1.12 billion), a 4.3% increase from 2023, while revenue from alcohol declined to VND42.1 billion ($1.67 million), down from VND51.6 billion ($2.06 million) in 2023.

As of the end of 2024, Sabeco’s total assets stood at VND33.4 trillion ($1.33 billion), a 2% decrease from early 2024. The company reported liabilities of VND9 trillion ($358.8 million), owners’ equity of VND24.43 trillion ($974.36 million), and retained earnings of VND9.21 trillion ($367.5 million).

Currently, Sabeco’s largest shareholder is ThaiBev-owned Vietnam Beverage Company Limited, which holds a 53.6% stake in the biggest brewer in Vietnam.

With Sabeco’s decision to distribute a 20% cash dividend, equivalent to VND2,000 per share, for 2024, ThaiBev is set to receive VND1.37 trillion ($54.82 million) from the payout.

Since acquiring Sabeco in late 2017, the Thai firm has collected VND12.03 trillion ($479.67 million) in dividend payouts, equivalent to 11% of its initial investment.

Last December, Sabeco completed the acquisition of 37.8 million shares, or a 43.2% stake, in local brewer Sabibeco Group (SBB). Following the move, Sabeco now owns nearly 52.2 million, or 59.6%, becoming the parent firm of Sabibeco.

According to a report by FPT Securities, as of end-2023, Sabeco operated 26 plants in Vietnam with a total designed capacity of 2.4 billion liters per year. With the addition of six Sabibeco factories that produce a combined total of 610 million liters annually, Sabeco’s total annual capacity will rise to 3.01 billion liters.

Currently, Sabeco’s main competitors in the Vietnam market, Heineken Vietnam, Habeco, Carlsberg, and Sapporo, have respective annual capacities of 2.78 billion liters, 800 million liters, 360 million liters, and 150 million liters, according to the broker.