Top brewer Sabeco reports 23% decline in Q3 profits

By Nhat Huynh, Minh Hue
Sat, October 28, 2023 | 9:20 am GMT+7

Vietnam’s leading beer maker Sabeco, owned by Thailand's ThaiBev, has reported an after-tax profit of VND1.07 trillion ($43.7 million) in the third quarter of 2023, down 23% year-on-year.

The company, which holds about 40% of the beer market in Vietnam, recorded net revenue of VND7.4 trillion ($301 million) in the period, a decrease of over 11%, according to its Q3 financial statement.

Sabeco blamed the lower revenue and profit on fierce competition from international beer brands, lower consumer demand due to the adverse impacts of economic instabilities, and rising raw material costs, while sales and corporate management costs had slightly decreased.

In Q3, the firm's revenue from financial activities expanded 31.3% to more than VND373 billion ($15.17 million), mainly thanks to increased bank deposit interest.

Saigon Beer - a product of Sabeco. Photo courtesy of the company.

Saigon Beer - a product of Sabeco. Photo courtesy of the company.

In the first nine months of the year, Sabeco recorded net revenue of VND21.94 trillion ($892.6 million) and after-tax profit of nearly VND3.3 billion ($134,260), down 12% and 25.7% over the same period last year, respectively.

For 2023, Sabeco has set net revenue and post-tax profit targets of VND40.27 trillion ($1.72 billion) and VND5.78 trillion ($246.2 million), up 15.1% and 5% year-on-year, respectively.

Over the nine months, the company fulfilled 54.5% of the year's revenue plan and 57% of the year's after-tax profit target.

As of September 30, Sabeco’s total assets had reached VND33.43 trillion ($1.36 billion), including VND22.4 trillion ($911.3 million) of cash and bank deposits. Its total liabilities were VND6.9 trillion ($280.7 million), down 30% from the beginning of the year.

Sabeco is listed on the Ho Chi Minh Stock Exchange (HoSE) as SAB. Closing the Friday session, the stock fell 4.68% from the previous day to VND63,100 ($2.57) per share, marking its strongest decline in one month. During the one-month period, SAB decreased by more than 16.3%.

The code has lost 28% compared to its "peak" of VND88,000 ($3.58) per share in mid-September. Compared to the beginning of the year, it has declined 24%, hitting its lowest level since April 2020.

In addition to Sabeco, many other brewers also recorded a decline in profits in the first nine months of 2023.

Habeco Hai Phong Brewery JSC reported a loss of VND9.2 billion ($374.3 million), as compared to a profit of nearly VND4 billion ($162,730) in the same period last year.

Saigon-Hanoi Beer JSC saw profit after tax drop from VND47 billion ($1.91 million) in the same period last year to VND36 billion ($1.46 million), while Hanoi-Hai Duong Beer JSC posted post-tax profit of VND7.2 billion ($292,920), down 30% year-on-year.

Vietnam’s leading broker Saigon Securities (SSI) forecast low revenue growth of F&B companies in 2023 as the trend of cutting spending continues. It expected Sabeco to achieve year-on-year net revenue and net profit growth of 13% and 5.3%, respectively, this year.

Comments (0)
  • Read More
Gemadept’s southern Vietnam port receives mega container ships

Gemadept’s southern Vietnam port receives mega container ships

Within just over two years of trial operations (from March 2023 to May 2025), Gemalink Port of Vietnamese logistics giant Gemadept in Ba Ria-Vung Tau has safely received 70 container vessels of over 200,000 DWT (up to 232,494.5 DWT) under partially loaded conditions.

Companies - Fri, July 4, 2025 | 4:54 pm GMT+7

Agro-forestry-fisheries exports near $34 bln in H1

Agro-forestry-fisheries exports near $34 bln in H1

Vietnam’s agro-forestry-fisheries exports hit $33.84 billion in the first half of 2025, marking a 15.5% increase year-on-year.

Economy - Fri, July 4, 2025 | 3:36 pm GMT+7

Malaysia’s data center operators struggle due to power cost hike

Malaysia’s data center operators struggle due to power cost hike

Malaysia’s data center sector is projected to grow at a 22% CAGR from 2023 to 2029 due to cost competitiveness, skilled workforce, and a robust digital ecosystem, according to a report by global investment bank ARC Group.

Southeast Asia - Fri, July 4, 2025 | 3:23 pm GMT+7

Tetra Pak inaugurates expanded aseptic packaging plant in southern Vietnam

Tetra Pak inaugurates expanded aseptic packaging plant in southern Vietnam

Swedish food processing and packaging giant Tetra Pak has inaugurated the second phase worth EUR97 million of its aseptic packaging plant located in the VSIP II-A Industrial Park in Ho Chi Minh City, bringing the total investment to EUR217 million.

Companies - Fri, July 4, 2025 | 3:16 pm GMT+7

Vietnam Prime Minister requests early removal of credit growth limits

Vietnam Prime Minister requests early removal of credit growth limits

Prime Minister Pham Minh Chinh on Thursday instructed Vietnam's central bank to urgently consider removing the administrative tool of setting credit growth quotas for individual banks, and shift toward a market-based control mechanism.

Banking - Fri, July 4, 2025 | 3:14 pm GMT+7

Vietnam GDP growth hits 7.3% in H1, highest in 17 years: Minister

Vietnam GDP growth hits 7.3% in H1, highest in 17 years: Minister

Vietnam’s GDP is expected to increase by 7.3% in the first half of this year, the highest level since 2008, said Minister of Finance Nguyen Van Thang.

Economy - Fri, July 4, 2025 | 2:31 pm GMT+7

Vietnam’s realty market may soon shift from undersupply to oversupply: experts

Vietnam’s realty market may soon shift from undersupply to oversupply: experts

The real estate market in Vietnam will soon face oversupply, a reversal of the supply shortage seen in recent years, according to economist Dr. Le Xuan Nghia.

Real Estate - Fri, July 4, 2025 | 11:29 am GMT+7

Vietnam’s benchmark VN-Index likely to reach 1,500 points on new US tariff: broker

Vietnam’s benchmark VN-Index likely to reach 1,500 points on new US tariff: broker

The VN-Index, representing the Ho Chi Minh Stock Exchange (HoSE), may reach 1,500 points in the coming time as the tariff agreement reached with the U.S. is expected to boost investor sentiment, according to Maybank Securities Vietnam (MSVN).

Finance - Fri, July 4, 2025 | 8:38 am GMT+7

Chinese materials major Kingfa on track to complete $80 mln plant in southern Vietnam

Chinese materials major Kingfa on track to complete $80 mln plant in southern Vietnam

Kingfa, China’s leading advanced materials company, on Wednesday held a topping-out ceremony for its $80 million plant in Dong Nai province, a key industrial hub in southern Vietnam.

Industries - Fri, July 4, 2025 | 8:23 am GMT+7

Vietnam’s stock market expects upgrading in September

Vietnam’s stock market expects upgrading in September

The State Securities Commission (SSC) is working intensively with ministries and stakeholders to settle remaining issues and improve foreign investor access, a critical step ahead of the expected review in September, Deputy Finance Minister Nguyen Duc Chi said at his ministry's (MoF) press meeting on Wednesday.

Finance - Thu, July 3, 2025 | 9:23 pm GMT+7

Vietnam's construction giant Coteccons plans $53 mln bond issue

Vietnam's construction giant Coteccons plans $53 mln bond issue

Vietnamese construction giant Coteccons (HoSE: CTD) plans to issue bonds worth up to VND1.4 trillion ($53.45 million) to the public this year as part of its 2025 capital mobilization plan, according to a company release.

Companies - Thu, July 3, 2025 | 8:12 pm GMT+7

Over $534 mln needed for central Vietnam city’s seaport infrastructure

Over $534 mln needed for central Vietnam city’s seaport infrastructure

Hue city in central Vietnam needs about VND14.05 trillion ($534.24 million) in investment for its seaport system during the 2021-2030 span, with approximately VND12.79 trillion ($488.05 million) for wharves.

Infrastructure - Thu, July 3, 2025 | 4:24 pm GMT+7

Ca Na LNG-fueled power project in central Vietnam extends bidding deadline

Ca Na LNG-fueled power project in central Vietnam extends bidding deadline

The bidding deadline for the Ca Na LNG-to-power project in south-central Vietnam's Khanh Hoa province has been extended to 2 p.m. on July 19, 2025.

Energy - Thu, July 3, 2025 | 4:06 pm GMT+7

USD price in Vietnam hits new peak as US, Vietnam reach agreement on trade deal framework

USD price in Vietnam hits new peak as US, Vietnam reach agreement on trade deal framework

Vietnamese banks on Thursday raised the USD price to the central bank-regulated ceiling of VND26,345, 3.1% higher than at the beginning of the year.

Banking - Thu, July 3, 2025 | 3:47 pm GMT+7

Vietnam inaugurates first paper-based food packaging line

Vietnam inaugurates first paper-based food packaging line

The first paper-based food packaging line in Vietnam applying Tetra Recart® technology was officially inaugurated in Son La province on Wednesday by Vietnam’s leading supplier of processed food, Dong Giao Foodstuff Export JSC (Doveco), and Sweden's Tetra Pak Group.

Companies - Thu, July 3, 2025 | 2:29 pm GMT+7

Toyota nears one-millionth vehicle sold in Vietnam

Toyota nears one-millionth vehicle sold in Vietnam

Toyota Motor Vietnam (TMV) delivered over 29,000 vehicles to Vietnamese customers in the first half of 2025, a 31% increase year-on-year, according to a company release on Wednesday.

Companies - Thu, July 3, 2025 | 2:24 pm GMT+7