Saigon Beer brewer sees revenue surge by a third
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Saigon Beer brewer Sabeco saw revenue jump 33% from 2021 to VND35.24 trillion ($1.5 billion) last year as consumption bounced back after two years of Covid-19.
The brewer’s post-tax profit surged nearly 40% to VND5.5 trillion, the highest level since it was sold to ThaiBev in 2017.
“The company has improved its production efficiency and implemented cost-saving measures to minimize the impact of higher input costs,” Sabeco said in a statement. “Many promotion and marketing campaigns also helped boost sales.”
Before the pandemic, the company spent VND3 trillion on promotion and marketing last year, double that of 2019.
Sabeco’s revenue last year was 8% shy of the 2019 level. However, its revenue quadrupled that of its major competitior in Vietnam, Habeco, which recorded a revenue of VND8.5 trillion.
Thapana Sirivadhanabhakdi, CEO of ThaiBev, said last year that Sabeco was its “crown jewel” and rejected rumors that the Thai company would sell the brewer.
Valued at $26 billion, Vietnam is the biggest beer market in Southeast Asia, and No. 3 in Asia behind China and Japan, according to 2021 figures.
Questions & Answers
Q.What was Sabeco's total revenue for the last year, and how much did it increase from the previous year?
What was Sabeco's total revenue for the last year, and how much did it increase from the previous year?
Sabeco's revenue reached VND35.24 trillion ($1.5 billion) last year. This represented a 33% increase compared to 2021, driven by a rebound in consumption after two years affected by Covid-19.
Q.What factors did Sabeco attribute to its improved financial performance last year?
What factors did Sabeco attribute to its improved financial performance last year?
Sabeco stated that improved production efficiency and cost-saving measures helped minimise the impact of higher input costs. Extensive promotion and marketing campaigns also played a significant role in boosting sales figures.
Q.How did Sabeco's marketing expenditure last year compare to its spending in 2019?
How did Sabeco's marketing expenditure last year compare to its spending in 2019?
Last year, Sabeco spent VND3 trillion on promotion and marketing. This figure was double the amount the company had spent on similar activities in 2019, indicating a significant increase in promotional efforts.
Q.What is the significance of the Vietnamese beer market in Southeast Asia and beyond?
What is the significance of the Vietnamese beer market in Southeast Asia and beyond?
Valued at $26 billion according to 2021 figures, Vietnam is the largest beer market in Southeast Asia. Globally, it ranks as the third-largest in Asia, behind only China and Japan.
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