Saigon beer company reports 6% profit increase in first half

Sabeco has reported a slight profit increase to VND2.3 trillion ($90.85 million) within the first half of 2024.

According to its latest financial report, the beverage company reported a 6% increase in profit from the first half of 2023, earning an average of VND12.9 billion per day.

Business in the second quarter this year was better than the same period in 2023, with a profit at VND1.319 trillion, a 9% increase. It was also the second consecutive quarter where Sabeco saw a recovery to its profit.

The company’s management board said policies for alcohol level control have been implemented in the first half of this year, with the company seeing tough competition in the market.

But thanks to the recovering economy and positive impacts of increased sale prices, the company’s revenue within the first six months saw a slight increase of 5% to around VND15.27 trillion.

Higher profit could also be attributed to lower sale costs, with Sabeco cutting sale costs by 14% to VND1.744 trillion, mostly in advertisements and employee discounts.

However, the board still anticipated the beer industry to be stormy this year, as people tighten their budgets and input costs remain high. Alcohol level control policies, along with proposals to increase special consumption tax, will force the company to improve on its commercial activities and supply chain effectiveness, as well as cut costs, the brewer said.

Sabeco aims for full-year 2024 revenue to reach VND34.4 trillion and profit to reach VND4.58 trillion, an increase of 13% and 8% respectively. After six months, the firm has reached just under half of its intended revenue goal, and just over half of its profit goal.

However, the board added it would take a few more years before revenues could return to pre-pandemic levels.