Hanoi Beer producer profits to slump to 10-year low
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The producer of Hanoi Beer expects sales to be badly hit by the Covid-19 pandemic this year and profits to fall to a 10-year low as a result.
The Hanoi Beer Alcohol and Beverage Jsc forecast post-tax profits of VND255 billion ($11 million), down 59 percent from 2020.
Habeco said in a report that tourism companies, hotels, and restaurants continue to suffer due to Covid-19, and this would directly cause a decrease in consumption of alcoholic beverages.
Another difficulty it cited was the rising competition with many brewers introducing new products in the popular market segment in which Habeco mainly operates.
But it said it would strive to maintain its position as one of the biggest brewers in the northern and central regions.
Questions & Answers
Q.What is the expected profit for Hanoi Beer this year?
What is the expected profit for Hanoi Beer this year?
Hanoi Beer Alcohol and Beverage Jsc forecasts post-tax profits of VND255 billion ($11 million) for the current year. This figure represents a 59 percent decrease compared to 2020, marking a 10-year low for the company.
Q.What are the main reasons for the expected profit drop?
What are the main reasons for the expected profit drop?
The primary cause is the negative impact of the Covid-19 pandemic on tourism, hotels, and restaurants, which directly reduces alcoholic beverage consumption. Increased competition from new products in its main market segment is also a factor.
Q.Which market segments is Habeco aiming to maintain its strong presence in?
Which market segments is Habeco aiming to maintain its strong presence in?
Habeco stated its intention to strive and maintain its position as one of the biggest brewers specifically within the northern and central regions. This focus is despite the current challenging market conditions.
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