2023 to be lucrative for SABECO

April 14, 2023 | 16:08
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Saigon Beer-Alcohol-Beverage Corporation (SABECO) has just released the agenda for its 2023 AGM, which will be conducted in Ho Chi Minh City on April 27, where the firm plans to announce a share issue at a ratio of 1:1.
2023 to be lucrative for SABECO

The move means shareholders will receive a new share for every share they already own. Following approval from the State Securities Commission of Vietnam, SABECO's charter capital will increase to VND12.8 trillion ($546 billion).

In addition, the company is set to increase its 2022 dividend payment from 35 per cent to 50 per cent.

“Last year saw better results and a stronger performance than we saw in 2021 as Vietnam emerged from the lockdowns and strict public health regulations. Furthermore, SABECO has successfully executed a number of marketing and sales initiatives designed to boost brand sales and reach a wider range of customers,” a statement from the firm noted. It has also boosted production efficiency and implemented cost-cutting measures, mitigating the impact of rising input costs.

SABECO is projecting net revenue of VND40.28 trillion ($1.72 billion) for 2023, an increase of 15 per cent on-year, and an after-tax profit of VND5.78 trillion ($246 million), up 5 per cent on-year.

The brewer believes that the consumption of sub-premium beverages will continue to expand, despite trends suggesting a transition to lower-income consumer segments could impact its revenue.

SABECO plans to focus its resources on market growth by developing its brand and product range, along with new distribution network strategies and a move towards digitalisation. The expansion of its brewery in Quang Ngai is currently under operation.

Last year, the brewing giant recorded revenues of VND35 trillion ($1.5 billion), up 32.6 per cent from 2021, while after-tax earnings saw a 40 per cent on-year jump to VND5.5 trillion ($235 million).

Industry experts believe Vietnam's brewing industry could capitalise on lucrative opportunities this year, thanks to a combination of factors including a golden demographic structure, income growth, promising returns from non-alcoholic beers, and export market potential.

SABECO thriving on 2022 results SABECO thriving on 2022 results

In the context of the economy accelerating post-pandemic recovery, Saigon Beer-Alcohol-Beverage Corporation, known as SABECO, had a successful 2022 after achieving its revenue targets early, with many other successes gained in operational and development activities.

SABECO sets itself up for stellar year of further gains SABECO sets itself up for stellar year of further gains

The successes in 2022 of Saigon Beer-Alcohol-Beverage Corporation (SABECO) continue to open up opportunities to reap sweet fruits in 2023.

By Thu Huong

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