Saigon Brewery profits more than 12 billion per day

The fourth quarter 2024 financial report of Saigon Beer – Alcohol – Beverage Joint Stock Corporation (Sabeco – SAB) shows that consolidated revenue increased by 5% compared to 2023 to more than 31,872 billion VND. Management said the above results are mainly due to better consumption demand as the economy improves even though Decree 100 is still strictly enforced and competition in the market is increasingly fierce. In addition, improved revenue also comes from the company increasing selling prices in the past year.

Cost price increased by 6%, causing gross profit to only increase by 2%, reaching more than 9,318 billion VND. Gross profit margin decreased slightly and was recorded at 29.2%. Revenue from financial activities last year also decreased by 26% mainly due to reduced interest on bank deposits (SAB is depositing more than 22,377 billion VND).

In return, financial costs in 2024 will be cut by 66%, with loan interest rates reduced by nearly half. Sales costs also decreased by 10% thanks to reduced advertising and promotion costs and staff costs.

In total, Sabeco’s after-tax profit is nearly 4,495 billion VND, an increase of 6% compared to 2023. On average, the company earns about 12.3 billion VND in profit every day.

Thus, SAB only completed about 92.7% of the revenue target set at the shareholders’ meeting.

In the November 2024 report of Bao Viet Securities (BVSC), the analysis team said that beer consumption showed signs of bottoming out in the third quarter of 2024 and gradually stabilized, especially when Tet came early. The owner of Saigon Beer shared that he had started bringing Tet products and packaging to sales points and initially received positive feedback from the market right before that. In fact, revenue in the fourth quarter increased 5% to more than 8,932 billion VND, the highest level in nearly two years.

In the coming time, Sabeco and beer businesses in general must face two major barriers including increasing special consumption tax and raising penalties for drinking and driving. Under the scoring system for each driver’s license, having 12 points deducted will result in traffic participants needing to wait 6-24 months before having to re-test their legal knowledge of traffic order and safety. road traffic. In BVSC’s opinion, this is the main factor that can impact alcohol consumption behavior in Vietnam, towards a healthy, sustainable and responsible alcohol market for the community.

Business results in 2024 are still growing, Sabeco decided to advance the first cash dividend of 2024. The rate is 20%, meaning one share receives 2,000 VND. The largest shareholder is Vietnam Berverage Co., Ltd., part of the Thai Beverage Group of Thai billionaire Charoen Sirivadhanabhakdi, which owns nearly 53.6% of Sabeco’s capital.

Thus, they will receive more than 1,375 billion VND in dividends. Cumulatively since acquiring SAB at the end of 2017 until now, this major shareholder has received more than 12,030 billion VND, equivalent to 11% of investment capital.

Thai Beverage once affirmed that Sabeco is a precious gem, a rare asset among beer producers in the region. In its 2024 financial report (IV/2023-III/2024 according to reality), Thaibev Group said Vietnam is their second largest market after their home country of Thailand.