Brewer Sabeco profits up 75% in 9 months
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Vietnam’s biggest brewer Sabeco gained after-tax profits exceeding VND4.42 trillion ($1=VND24,800) in the first nine months of 2022, a year-on-year surge of 75%.
Sabeco’s revenues surpassed VND25.1 trillion, up 44% on-year, according to its latest financial statements. Meanwhile, the firm spent over VND1.8 trillion on advertisements and promotions.
In the third quarter, Sabeco made revenues of over VND8.635 trillion, doubling last year’s figures, and after-tax profits of more than VND1.3 trillion, nearly treble the previous amount.
Bao Viet Securities said the brewer’ beer selling prices would increase 10% this year against 2021, amid room for Vietnam’s beer industry to grow.
The country produced over 4.3 billion liters of beer in the first nine months, up nearly 36% against the same period last year, and up 15.5% against the same period of 2019, the pre-Covid period, according to the General Statistics Office.
Vietnam is the biggest beer consumer in Southeast Asia and the ninth biggest in the world, according to Japanese drinks company Kirin Holdings, with demand likely to grow further as a large young population reaches adulthood, Nikkei reported.
Questions & Answers
Q.What contributed most significantly to Sabeco's improved financial performance over the nine-month period?
What contributed most significantly to Sabeco's improved financial performance over the nine-month period?
The brewer's revenue increased by 44% year-on-year, reaching over VND25.1 trillion. Also, beer selling prices are projected to rise by 10% this year compared to 2021, further boosting profitability.
Q.How does Sabeco's recent advertising and promotion spending compare to their overall profits?
How does Sabeco's recent advertising and promotion spending compare to their overall profits?
Sabeco spent over VND1.8 trillion on advertisements and promotions during the first nine months. This figure represents a significant portion when compared to their after-tax profits exceeding VND4.42 trillion in the same period.
Q.What is the broader context for the growth seen in Vietnam's beer industry?
What is the broader context for the growth seen in Vietnam's beer industry?
The country produced over 4.3 billion litres of beer in the first nine months, a 36% increase year-on-year, and 15.5% higher than pre-Covid levels. Vietnam is a major consumer with a young population reaching adulthood, suggesting further demand growth.
Q.Was Sabeco's growth consistent throughout the first nine months of the year?
Was Sabeco's growth consistent throughout the first nine months of the year?
The third quarter showed particular strength, with revenues doubling last year's figures to over VND8.635 trillion, and after-tax profits nearly trebling to more than VND1.3 trillion during that period.
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