SABECO aims to hit record targets for 2023

According to SABECO, 2023 boasts golden opportunities for Vietnam’s beer industry

2023 set new targets

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

The company will continue to step up its transformation journey with a greater focus to improve its position in the domestic market and expand its penetration internationally through strategic efforts on sales and marketing activities, developing a stronger product portfolio, strengthening its route to market and distribution, while continuing to drive production and supply chain efficiencies, as well as digitizing business processes within the corporation.

Together with its business development objectives and action plans, SABECO will continue reinforcing its 4Cs sustainable development commitment, which includes driving ESG initiatives that are in line with the corporate goals and Vietnam national strategies.

The corporation is committed to continuing its effort as a proud, prominent, and responsible corporate citizen to support its ambition to bring out the best of Vietnam.

The chairperson of the annual general shareholders' meeting and board member Michael Chye said, “The business environment remains challenging with various uncertainties driven by the global economy, the unpredictable and fierce competition.

"However, we remain committed to investing in opportunities that drive long-term growth and increase shareholder returns. This will enable us to reward our shareholders with dividends that are sustainable and in line with the company’s long-term growth prospects," he said.

The company also reaped sweet results in terms of business when net revenues in 2022 increased by 33 per cent over the same period, reaching nearly $1.5 billion. Profit after tax reached nearly $234.3 million, up 40 per cent compared to 2021.

The impressive business results in the past year are an effective testament to the enterprise's comprehensive efforts in promoting marketing and sales initiatives, researching new products, and controlling input material costs. Meanwhile, it has improved operational efficiency across the entire supply and manufacturing chain through the SABECO 4.0 digital transformation initiative.

SABECO will continue to step up its transformation journey with a greater focus to improve its position in the domestic market and expand its penetration internationally

"Our performance for the year was respectable, and we managed to outperform last year's revenue and profit after tax by 33 per cent and per cent, respectively," said general director Bennett Neo at the company's AGM.

"Despite the impact of higher input costs, this was the highest profit after tax in SABECO's history. This amazing result would not have been possible without the hard work and dedication of everyone connected with SABECO."

According to SABECO, 2023 boasts golden opportunities for Vietnam’s beer industry. The trend of consuming mass premium beer brands will continue to grow over the long run, company leaders say. However, potential consumer belt-tightening may impact sales due to their incomes still being affected by restrictions in recent years.

In addition, strengthened competition and more robust alcohol-related legislation and tax rises could also continue to affect performance.

Neo said, “With the 2023 plan, we have approved it since February. At that time, it was clear the market was already difficult, and it is even more difficult now. In 2023 we have considered the factors of surprise, but perhaps not enough. But looking back over the years, we've almost always hit our target, and if not nearly. We are influenced by many factors. The epidemic is negative, but the positive is that the price of raw materials is falling, so we will try to achieve the plan,”

Change of general director of SABECO

Bennett made a strong contribution to SABECO during his five-year tenure as general director.

At the AGM, the appointment of Lester Tan Teck Chuan was announced as the new general director of SABECO, effective from October 1. Lester will succeed Bennett Neo who will be completing his 5-year term as general director and will return to the head office at the end of September 2023.

With more than 25 years of experience in the beer industry-leading various companies across multiple markets in Asia, Chuan will begin as general director of SABECO after the handover.

Chye said: “I would like to take this opportunity to thank Bennett for his sterling contributions to SABECO during his five-year tenure as general director. The transformation journey spearheaded by Bennett since 2018, progressing from Phase 1 to now Phase 2 leaves the corporation on an excellent footing for sustainable success.

"Some of the initiatives kick-started by Bennett included the relaunch of Bia Saigon and 333 brands in 2019, the launch of new mass premium Bia Saigon Chill in 2020, SABECO 4.0, performance-based salary restructuring as well as the brewery capacity expansion projects, and the recent brewery acquisition projects were instrumental to the transformation success of the company building a solid foundation for further success," Chye said. "In addition, Bennett is a great supporter of corporate social responsibility and has championed many activities, notably the “Rise with Vietnam” relay in 2020 where SABECO dedicated its 145^th-anniversary celebratory efforts to support the vulnerable during the pandemic."

"Bennett will continue to lead the corporation until the end of this September and to ensure a smooth transition over to Lester,” he added.

SABECO leading a positive recovery Manufacturing enterprises such as Saigon Beer-Alcohol-Beverage Corporation are heralding bright spots in Vietnam’s economic picture in 2022 that have created confidence and a foundation for 2023.

Foreign investors committed to Vietnam's sustainable development Foreign-invested enterprises in Vietnam are showing a strong commitment towards sustainable development, although a series of issues need to be tackled.

Brand development and more on agenda for SABECO Many new plans are expected to be submitted by Saigon Beer-Alcohol-Beverage Corporation at its AGM this week, continuing to show its great ambitions and further its strategic goals set out in previous years.