Vietnam’s largest brewer Sabeco eyes 17% profit increase

Sabeco, owned by Thailand’s largest beverage maker ThaiBev, expects 32% and 17% rises in this year’s revenue and after-tax profit, respectively.

Specifically, the Ho Chi Minh City-based brewer set a revenue target of VND34.8 trillion ($1.67 billion) and after-tax profit of $199 million.

At its annual general meeting on Wednesday, Sabeco said in the second phase of its shake-up that started this year, the firm would accelerate growth and development. 2021 wrapped up the major’s first three years of restructuring.

“We have ramped up our business operations and brand performance despite challenges caused by the Covid-19 pandemic. We strived to maintain stability in our operations and maximize sales in both the domestic and export markets,” Sabeco CEO Bennett Neo told the meeting.

Sabeco reported a 25% increase year-on-year in after-tax profit to $52.27 million in the first quarter thanks to the country's post-pandemic resumption of tourism and services, and rocketing sales during the Lunar New Year holiday in late January.

Its revenue in Q1 increased at the same rate to over $318 million, and beer sales accounted for 87% of the total revenue.

On the Vietnamese stock market, the major’s SAB stock closed at VND169,000 ($7.36) on Wednesday, up 11 percent from the beginning of the year.

Contrary to Sabeco, Hanoi-based Habeco, another leading brewer, has revised its after-tax profit forecast for the third year in a row, down to $9.7 million for this year. The figure is a decline of over $3.9 million from last year’s performance.

ThaiBev is the flagship business of TCC Group, led by Charoen Sirivadhanabhakdi, the self-made billionaire widely regarded as Thailand's king of mergers and acquisitions.

ThaiBev acquired 53% of Sabeco for $4.8 billion in December 2017, then started restructuring the top Vietnamese beer producer, whose established brands include Saigon Beer and 333.

Notably, the logo of Saigon Beer (Bia Saigon) was put on Leicester City Football Club shirts in the English Premier League during the 2018/19 season thanks to a partnership agreement between the club and ThaiBev.