Beer companies enjoy recovery
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Better second-quarter figures could indicate that the most challenging period for beer makers this year could have ended, a report says.
Vietnam’s biggest brewer Sabeco saw a year-on-year revenue fall of 21 percent in the second quarter, smaller than the 47 percent recorded in the first quarter, according to a recent report from top brokerage SSI Securities Corporation.
Its SAB shares’ prices have risen 66 percent from the lowest point it had reached this year on March 24 to VND191,500 ($8.26) Monday.
The SSI analysts expect Sabeco sales to improve in the second half of the year if a nationwide social distancing campaign is not imposed as had happened in April.
They also estimate that Sabeco’s revenues rise 23 percent over this year to VND33.3 trillion ($1.4 million) in 2021.
A similar trend can be seen at the Hanoi Beer Alcohol and Beverage Jsc (Habeco), the report said. Its year-on-year revenues fell just 12.9 percent in the second quarter, compared to 50.6 percent the previous.
Prices of Habeco’s BHN shares have risen 28 percent from its bottom on April 8 to VND52,400 ($2.2) Monday.
However, the SSI analysts also said that beer consumption in Vietnam will take years to recover to levels recorded before the pandemic and imposition of tougher fines for drunk driving in January this year.
Beer consumption in the first half of this year fell 12.7 percent year-on-year, according to a report by market research firm Nielsen. However, production in May rose 60 percent from the monthly average between February and April, it added.
Vietnam consumed more than 4.6 billion liters of beer last year, up 10 percent from 2018, according to SSI.
Questions & Answers
Q.What factors are expected to influence Sabeco's sales performance in the latter half of the year?
What factors are expected to influence Sabeco's sales performance in the latter half of the year?
SSI analysts anticipate Sabeco's sales will improve in the second half of the year. This projection relies on the condition that no nationwide social distancing campaign is imposed, which previously occurred in April and impacted sales.
Q.Why do analysts believe a full recovery in Vietnam's beer consumption will take several years?
Why do analysts believe a full recovery in Vietnam's beer consumption will take several years?
Analysts predict beer consumption will take years to recover to pre-pandemic levels. This is due to the lasting effects of the pandemic and the imposition of tougher fines for drunk driving, which began in January this year.
Q.What were Sabeco's projected total revenues for 2021, according to SSI analysts?
What were Sabeco's projected total revenues for 2021, according to SSI analysts?
SSI analysts estimated that Sabeco's total revenues for 2021 would rise by 23 percent over this year. They forecast these revenues to reach VND33.3 trillion, equivalent to $1.4 million.
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