Top brewer Sabeco eyes acquisition of 2 loss-making firms

By Tri Duc
Sat, February 11, 2023 | 10:23 am GMT+7

Vietnam’s top brewer Sabeco, owned by Bangkok-based ThaiBev, is looking to increase its ownership in two loss-making companies, namely Saigon Binh Tay Beer Group JSC (Sabibeco Group) and Saigon Packaging Group JSC.

Bia Saigon (Saigon Beer), a Sabeco brand, has sponsored the English Premier League's Leicester City FC since 2018. Photo courtesy of Sabeco.

Bia Saigon (Saigon Beer), a Sabeco brand, has sponsored the English Premier League's Leicester City FC since 2018. Photo courtesy of Sabeco.

After completing transactions per an in-principle proposal approved on Wednesday, Sabibeco Group and Saigon Packaging Group will become subsidiaries of Sabeco, listed on the Ho Chi Minh Stock Exchange (HoSE) as SAB. The transactions will raise SAB’s number of subsidiaries to 27.

As of December 31, 2022, SAB held a 21.8% stake in Sabibeco Group, according to the former’s consolidated financial report for Q4/2022.

The report also showed that SAB had made equity investments of VND50 billion ($2.12 million) at Saigon Packaging Group as of end-2022, while the latter’s registered capital was last raised to VND562 billion ($23.84 million) in 2018 from VND300 billion.

According to reports, Sabibeco Group made post-tax losses of VND107 billion ($4.54 million) and VND80 billion ($3.39 million) in 2020 and 2021, respectively, amid the Covid-19 pandemic peak.

The corresponding figures for Saigon Packaging Group were VND86 billion ($3.65 million) and VND130 billion ($5.51 million), respectively.

Sabeco posted an after-tax profit of nearly VND5.5 trillion ($234.6 million) in 2022, up 40% year-on-year and the highest level since it was acquired by the Thai group at the end of 2017.

ThaiBev, Thailand’s largest beverage maker, acquired a 53.59% stake in Sabeco from Vietnam's Ministry of Industry and Trade for $4.8 billion as it sought to dominate Southeast Asia’s beverage market.

The company, which holds about 40% of the beer market in Vietnam, recorded a net revenue of nearly VND35 trillion ($1.49 billion) last year, up 32%.

Sabeco said that in 2022 it spent more than VND3 trillion ($127.94 million) on advertising and promotions, up 40% compared to the previous year and double 2019.

The brewer now runs 26 factories in Vietnam with a capacity of 2.2 billion liters a year. Vietnam's beer output reached 6.12 billion liters in 2022, up 35.3% year-on-year, according to the General Statistics Office.

SAB shares ended down 2.27% to VND189,400 ($8.03) on Friday.

Sabeco is accelerating its phase-two business restructuring toward becoming an international brewer, Sabeco CEO Neo Bennett told an M&A forum in HCMC on November 23, 2022. The three-stage business restructuring toward such an international company would take 10-12 years.

The year 2021 ended the first phase of this transformation. Sabeco has been strengthening its competitiveness by implementing transformation initiatives across seven strategic pillars namely sales, branding, manufacturing, supply chain, costs, personnel, and governance.

“We are riding on the first phase’s success to carry on phase two with a positive outlook.

“By and large, the board of directors of a company in Vietnam is involved in corporate governance. In other countries, the BoD deals with long-term development strategies, while the executive team is in charge of daily business. This is the difference between Vietnam and the world,” he said.

Comments (0)
  • Read More
Investors advised to take profits from stocks having risen sharply

Investors advised to take profits from stocks having risen sharply

Investors should maintain a balanced stock allocation in their portfolios and consider buying opportunities if the VN-Index retreats to the 1,300-1,320 point range, say market experts.

Finance - Sun, June 1, 2025 | 8:10 pm GMT+7

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report

Shares of Phu Nhuan Jewelry JSC (PNJ), a leading jewelry producer in Vietnam, rallied sharply ahead of the central bank’s Friday release of its gold market inspection findings.

Companies - Sun, June 1, 2025 | 1:14 pm GMT+7

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand

Emall Vietnam, which owns a network of 100 high-end business shoe stores under the Pierre Cardin and Oscar brands in Vietnam, has taken over the entire Pierre Cardin shoe system in Thailand.

Companies - Sun, June 1, 2025 | 10:29 am GMT+7

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Southern Vietnam province Ba Ria-Vung Tau okays 53 projects

Ba Ria-Vung Tau authorities on Friday granted in-principle approvals or investment registration certificates for 53 projects, including a green light for a $400 million investment capital hike of the $5.4 billion Long Son Petrochemicals Complex.

Industries - Sun, June 1, 2025 | 8:00 am GMT+7

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland 

Novaland, a major real estate developer in Vietnam, will simultaneously implement plans to issue bonus shares and offer ESOP (employee stock ownership plan) shares, with a total issuance rate of 5%, equivalent to more than 97 million units.

Companies - Sat, May 31, 2025 | 11:09 pm GMT+7

Vietnam billionaire Pham Nhat Vuong to contribute 48 mln Vingroup shares to VinSpeed

Vietnam billionaire Pham Nhat Vuong to contribute 48 mln Vingroup shares to VinSpeed

Billionaire Pham Nhat Vuong has registered to transfer more than 48 million Vingroup (VIC) shares to the newly-established VinSpeed that registered to build the North-South high-speed railway project.

Infrastructure - Sat, May 31, 2025 | 7:14 pm GMT+7

Two investors propose $65 mln wind power project in central Vietnam

Two investors propose $65 mln wind power project in central Vietnam

A consortium of Quang Tri Renewable Energy Investment JSC and Win Power Holding Pte Ltd, and Nam Binh Wind Power JSC have submitted an application to implement a 48-megawatt wind power plant in the central province of Quang Tri.

Energy - Sat, May 31, 2025 | 3:10 pm GMT+7

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

Central Vietnam city seeks investors for $209 mln LNG, LPG terminal project

The central city of Danang is calling for investment in an LNG and LPG terminal project worth over VND5.43 trillion ($208.7 million).

Infrastructure - Sat, May 31, 2025 | 10:52 am GMT+7

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

Thai-backed food giant C.P. Vietnam rejects pork safety accusations 

C.P. Vietnam, a subsidiary of Thailand’s food giant Charoen Pokphand Foods Public Company Limited (CPF), has dismissed social media allegations of selling diseased pork, calling them fabricated and false.

Companies - Sat, May 31, 2025 | 8:54 am GMT+7

Oman Investment Authority to expand investment fund in Vietnam

Oman Investment Authority to expand investment fund in Vietnam

Prime Minister Pham Minh Chinh has proposed Oman to enlarge the Vietnam-Oman Investment Fund (VOI) to $1 billion to better cater for the Southeast Asian country's investment needs.

Economy - Fri, May 30, 2025 | 11:26 pm GMT+7

Japanese retailer Aeon to build 2-hectare mall in Vietnam’s Mekong Delta

Japanese retailer Aeon to build 2-hectare mall in Vietnam’s Mekong Delta

Retail giant Aeon will develop a 2-hectare mall in the Mekong Delta province of Tien Giang, with an estimated investment of VND1.16 trillion ($44.6 million).

Industries - Fri, May 30, 2025 | 4:44 pm GMT+7

76% of Vietnamese survey respondents say trade uncertainty encourages them to explore new opportunities: HSBC

76% of Vietnamese survey respondents say trade uncertainty encourages them to explore new opportunities: HSBC

Vietnamese businesses have experienced exponentially higher cost increases than the global average and are expecting additional short-term costs due to trade uncertainty. But many survey respondents (76%) think trade uncertainty has encouraged their business to evolve and explore new opportunities, write HSBC analysts.

Consulting - Fri, May 30, 2025 | 2:41 pm GMT+7

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

Vietnamese firm lands first $1 mln order on Alibaba after 8-year struggle to export

After five months of operating a virtual storefront on Alibaba’s B2B e-commerce platform, Sukavina Co., Ltd., a Binh Duong province-based manufacturer of metal tables, chairs, and beds, secured its first international order, marking a significant milestone in the company’s eight-year journey to global markets.

Companies - Fri, May 30, 2025 | 2:37 pm GMT+7

AgriS partners with IFC: Optimizing environmental and social management system, accelerating net zero 2035 goal

AgriS partners with IFC: Optimizing environmental and social management system, accelerating net zero 2035 goal

TTC AgriS (Thanh Thanh Cong-Bien Hoa JSC or AgriS) and International Finance Corporation (IFC) - a member of the World Bank Group - has signed an MoU to strengthen sustainable development governance in alignment with global standards.

Companies - Fri, May 30, 2025 | 2:30 pm GMT+7

Vietnam's stock market attractively priced: Finnish fund PYN Elite

Vietnam's stock market attractively priced: Finnish fund PYN Elite

Vietnam’s stock market is attractively priced, with a price-to-sales (P/S) ratio of 1.3, said Petri Deryng, portfolio manager at Finnish investment fund PYN Elite.

Finance - Fri, May 30, 2025 | 2:09 pm GMT+7

S Korea's SK Group eyes 3 LNG power projects in Vietnam: chairman

S Korea's SK Group eyes 3 LNG power projects in Vietnam: chairman

SK Group, South Korea’s second-largest chaebol, is exploring several LNG-fueled power projects in Vietnam, including three proposed to be included in the country's green growth project portfolio, said chairman Tae-Won Chey.

Energy - Fri, May 30, 2025 | 1:37 pm GMT+7