Brewer Sabeco sees profits plummet
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Vietnam’s largest brewer Sabeco saw its H1 post-tax profit fall 31 percent year-on-year to VND1.93 trillion ($83 million) over Covid-19 pandemic impacts. Revenues fell 35 percent to VND12 trillion ($518 million), 89 percent of it from beer, and the rest from wine and other beverages.
The company, owned by Thai beverage giant ThaiBev, said that the profit plunge came as Vietnam imposed social distancing measures and closed “non-essential” businesses to contain the novel coronavirus. Authorities ordered most businesses, including restaurants and bars, to close in March and April.
Vietnam’s new regulations on drunk driving have also impacted on its business, Sabeco said. The country’s new regime of fines – up to VND8 million ($345) for DUI motorbike drivers and VND40 million ($1,730) for car drivers have kept drinkers away from restaurants and bars. Sabeco forecasts a post-tax profit fall of 37 percent this year to VND3.25 trillion.
Questions & Answers
Q.What was the main reason for Sabeco's profit decrease in the first half of the year?
What was the main reason for Sabeco's profit decrease in the first half of the year?
The company stated that the profit fall was due to the Covid-19 pandemic, which led to social distancing measures and the closure of non-essential businesses like restaurants and bars in March and April.
Q.How much did Sabeco's revenues decrease in the first half of this year?
How much did Sabeco's revenues decrease in the first half of this year?
Sabeco's revenues fell by 35 percent year-on-year to VND12 trillion, which is equivalent to $518 million. This decline occurred in the first half of the current year.
Q.Besides the pandemic, what other factor impacted Sabeco's business?
Besides the pandemic, what other factor impacted Sabeco's business?
New regulations on drunk driving in Vietnam also affected the business. Increased fines for DUI motorbike and car drivers reportedly kept people away from restaurants and bars.
Q.What is Sabeco's forecast for its post-tax profit decline for the entire year?
What is Sabeco's forecast for its post-tax profit decline for the entire year?
Sabeco predicts a 37 percent fall in its post-tax profit for the full year. This would bring their profit down to VND3.25 trillion by the end of the year.
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