SABECO tries its best to usher a brighter 2021 despite challenges ahead

SABECO tries its best to usher a brighter 2021 despite challenges ahead

Vietnam's biggest brewer has set a target revenue of VND 33.49 trillion ($1.33 billion) and net profits of VND5.2 trillion ($208 million) for 2021, a 20 per cent and 7 per cent on-year increase, respectively.

According to general director Bennett Neo, SABECO will continue to drive the growth of its brands in 2021 by improving brand awareness, distribution, and consumption. This includes initiatives to further develop Bia Lac Viet and Bia Saigon Chill, which the company launched last year.

This is one of the weapons to increase market share as SABECO looks to continue to take over the premium beer segment by targeting enlightened, optimistic, and sociable Vietnamese consumers in context of a rising number of consumers paying more attention to such products thanks to its better quality and taste, and increased willingness to pay higher prices.

Besides that, SABECO has pointed out key solutions including operational efficiency through the continued implementation of its SABECO 4.0 initiative, operational and cost excellence, and human capital as well as adaptation to the dynamic local market with its ever-changing business environment.

Neo explained, “For 2021, SABECO aims to leverage on the resiliency of the Vietnamese economy, and the growth opportunities that will come as it continues to bounce back.”

At the presentation of the group's 2020 financial results, SABECO highlighted that while revenues and profit after tax were down 26 per cent and 8 per cent from the previous year, it still managed to surpass its targets by 17 per cent and 52 per cent, respectively. Specifically, the beer company exceeded its revenue targets by VND4.16 trillion ($166 million) and its target net profit by VND1.6 trillion ($64 million).

Industry insiders predict that competition will remain stiff with every brewer vying for a higher market share, in which the trend of consuming mass premium brands will continue to grow over the long run. However, potential consumers’ down-trading may have an impact on 2021 sales due to their income being affected by the lingering pandemic.

“Under the guidance of the Board of Directors, the relentless efforts of the Board of Management and all employees, as well as SABECO’s enduring spirit of never giving up, I strongly believe that we will usher in a brighter 2021,” Neo added.