SABECO sitting in good stead for 2022

SABECO is looking to a positive outlook for 2022

To seize the opportunities in tourism and through outdoor activities, the company (HSX: SAB) has set profits after tax of VND4.58 trillion ($199.1 million) and net sales of around VND34.8 trillion ($1.64 billion). The two indicators have increased 17 per cent and 32 per cent on-year, respectively.

A SABECO document noted, “Despite of major challenges from the pandemic and Decree No.100/2019/ND-CP on prohibiting drink-driving, innovation will be the driving force for economic growth in 2022.”

The optimistic plans were also contributed by the stabilisation of production and business segments that exploit domestic consumption with the growing purchasing power of millions of Vietnamese people.

The brewer added that the beer production and trading industry still faces difficulties due to the increase in the price of raw materials, the scarcity of goods caused by traffic congestion, and the large increase in freight charges, which pushed up commodities prices over recent times.

Alcoholic beverages in Vietnam are subject to three taxes: import tax from 5-80 per cent depending on the type of free trade agreement, VAT of 10 per cent, and special consumption tax that increased from 50 to 65 per cent in 2018.

SABECO predicts that the trend of consuming mass premium beer brands will continue to grow over the long run. However, potential consumers’ down-trading may have an impact on 2022 sales due to their incomes being affected by the lingering pandemic.

Chairman of SABECO Koh Poh Tiong was quoted in the document saying that to achieve the proposed 2022 business plan, the board has provided guidance focusing on branding and marketing activities, maintaining focus on the domestic market, and also reaching out to the international market.

“SABECO has been working on saving costs in administrative procedures since the pandemic emerged. It continues to apply the SABECO 4.0 digital system in administrative and business activities for its group of companies,” said Tiong.

With 147 years of brewing history, SABECO has established itself as one of Vietnam’s leading companies. It includes 26 breweries and 11 trading subsidiaries and has a distribution network consisting of 100,000 retailers nationwide. SABECO offers a brand portfolio that consists of some of the most well-loved beer brands in Vietnam, including Bia Saigon Chill, Bia 333, Bia Saigon Special, Bia Saigon Export, Bia Saigon Lager, Bia Lac Viet, and Bia Saigon Gold.