SABECO posts Q2 2025 profit of $50 million, fulfilling 42 per cent of full-year target

In Q2/2025, Saigon Beer – Alcohol – Beverage Corporation (SABECO) recorded net revenue of VND 6.87 trillion ($275 million), down 16 per cent year-on-year. However, thanks to a sharp reduction in cost of goods sold, down 23 per cent to VND 4.36 trillion ($174 million), the company managed to maintain a stable gross profit of about VND 2.45 trillion ($98 million).

During the quarter, financial income edged down slightly to VND 255 billion ($10.2 million), while financial expenses nearly doubled to more than VND 15 billion ($0.6 million). SABECO attributed the increase in financial costs mainly to the acquisition of Binh Tay Brewery Group, following its reclassification from an associate to a subsidiary effective January 3, 2025.

Selling expenses remained largely unchanged, while general and administrative expenses surged 36 per cent year-on-year to VND 239 billion ($9.6 million). After accounting for all expenses, SABECO’s net profit for Q2/2025 declined 5 per cent year-on-year to VND 1.25 trillion ($50 million).

For the first half of 2025, the company posted net revenue of VND 12.62 trillion ($505 million), down 17 per cent year-on-year, while net profit reached VND 2.05 trillion ($82 million), a 12 per cent decline compared with the same period last year.

In 2025, SABECO targets net revenue of VND 31.64 trillion ($1.27 billion) and net profit of VND 4.84 trillion ($194 million). Based on the first-half results, the company has completed around 40 per cent of its revenue target and 42 per cent of its profit target for the year.

The company attributed the revenue decline mainly to weak consumption volumes amid subdued demand, intense competition, and accounting impacts arising from the consolidation of Binh Tay Brewery Group. Lower interest income from bank deposits and higher financial expenses also weighed on profitability. These factors were partly offset by higher earnings from joint ventures and associates, as well as ongoing efforts to control selling costs.

Despite market concerns over the potential impact of stricter alcohol concentration enforcement on the beer industry, SABECO did not cite this factor in its financial statements.

As of June 30, 2025, SABECO’s total assets stood at VND 33.20 trillion ($1.33 billion), slightly lower than at the beginning of the year. Current assets accounted for more than VND 25.10 trillion ($1.00 billion). The company held cash and cash equivalents of approximately VND 6.50 trillion ($260 million), up nearly 50 per cent from the start of the year.

In addition, SABECO reported VND 15.89 trillion ($636 million) in financial investments held to maturity, mainly comprising bank deposits with maturities ranging from three months to under one year (VND 15.68 trillion, or $627 million). Longer-term deposits amounted to over VND 200 billion ($8 million). In total, SABECO had approximately VND 22.39 trillion ($896 million) deposited with banks.