In its first year since ThaiBev acquired a majority share in Vietnam’s largest beer company (inside.beer, 18.12.2018), Saigon Beer - Alcohol - Beverage Joint Stock Corporation (Sabeco) today announced its consolidated business results for the second quarter of 2019 and a big jump in profits. Gross profit was more than VND 2,413 billion (USD 104.45 million), up 15% compared to the same period in 2018. After-tax profit rose even more by 19% to VND 1,530 billion (USD 66.25 million). The parent company's after-tax profit reached VND 1,437 billion (USD 62.21 million).
Sabeco's financial income in the period increased to VND 198 billion (USD 8.57 million), while in the second quarter of 2018, this was only VND 144 billion (USD 6.23 million). Financial expenses recorded VND 12 billion (USD 520,000), selling expenses increased by 12% up to VND 644 billion (USD 27.89 million), management expense dropped by 10% to VND 183 billion (USD 7.92 million). Cost of goods sold of Sabeco in the period amounted to VND 6,674 billion (USD 288.97 million).
However, net sales and service provision were 1% down in the second quarter 2019 compared to the same period one year before, totaling VND 9,087 billion (USD 393.39 million).
In the first 6 months, Sabeco net revenue reached VND 18,424 billion (USD 797.59 million), up by 9%. Profit after tax was VND 2,819 billion (USD 35.46 million), up 15% compared to the same period of 2018.
Sabeco currently accounts for more than 40% of the Vietnamese beer market.
Koh Poh Piong, Chairman of Sabeco, said that the company was an "unpolished diamond" because of its growth potential in sales and unexploited market share. In his view the Vietnamese market is still expected to grow in the next years by more than 5% while the growth of beer consumption in countries around the world goes flat or is even negative.
ThaiBev said Sabeco is a high quality enterprise. Sabeco is also the main growth driver of the beer industry in the context of slowing consumption in Southeast Asia. According to ThaiBev, the Vietnamese beer market remains attractive being the biggest of all ASEAN countries and 3rd in Asia, behind only China and Japan.
In contrast to Sabeco, the other former state-owned brewery Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (Habeco) which is still subject to a sale to a major international brewing company whith Carlsberg being in the lead (inside.beer, 8.9.2017), recorded a decrease in net revenue by 16% (VND -480 billion, USD 20.80 million) to VND 2,432 billion (USD 105.42 million) in the second quarter 2019.
Since 2014, Habeco’s market share and business results are shrinking. Habeco already lost the second position in the Vietnamese beer market.
In 2018, Habeco recorded a pre-tax profit of VND 626 billion (USD 105.42 million), down 28% compared to 2017. This was already the third consecutive year of declining profits. In 2019, the company's pre-tax profit target was only VND 384.5 billion (USD 16.67 million), the lowest value in the last 10 years.