SABECO's after-tax profit nearly triples in Q3

A beer production line at SABECO. Viet Nam’s biggest brewer SABECO achieved after-tax profit of VND1.39 trillion (nearly US$56 million) in the third quarter of 2022. — Photo courtesy of SABECO

Viet Nam’s biggest brewer SABECO achieved after-tax profit of VND1.39 trillion (nearly US$56 million) in the third quarter of 2022, nearly triple the figure in the same period last year.

Sai Gon Beer-Alcohol-Beverage JSC (SABECO) has announced its integrated business results with net revenue of more than VND8.6 trillion, increasing 102 per cent over the same period last year. Revenue from beer sales alone accounted for 89 per cent of its total revenue.

In the first 9 months of the year, SABECO posted net revenue of VND24.9 trillion and after-tax profit of VND4.4 trillion, posting 44 per cent of 75 per cent year-on-year increases, respectively.

In which, gross profit margin improved from 26.7 per cent to 31.2 per cent. From 2016 to 2021, gross profit margin ranged from 22.49 per cent to 30.4 per cent. The gross profit margin in the third quarter of 2022 was a record level in the past five years.

The company said that in the January-September period, its revenue and profit have improved higher than last year when the whole country was no longer under social distancing. In addition, many sales and marketing support programmes have also promoted sales activities. SABECO has also improved production efficiency and implemented cost-saving measures, helping mitigate the impact of higher input costs.

In 2022, SABECO set a target of net revenue of VND34.7 trillion, after-tax profit of VND4.5 trillion, up 32 per cent and 17 per cent respectively compared to 2021. In the first 9 months of the year, SABECO has completed 96.6 per cent of the whole year's profit target.

As of September 30, 2022, SABECO's total assets increased by 11 per cent compared to the beginning of the year, reaching VND33.9 trillion. Its total debt as of September 30 was VND811 billion, accounting for a small proportion of the capital structure. Its equity reached VND25.8 trillion, including VND16.8 trillion undistributed after-tax profit.

Bao Viet Securities said the brewer’s beer selling prices would increase 10 per cent this year against 2021, amid room for Viet Nam’s beer industry to grow.

The country produced over 4.3 billion liters of beer in the first nine months, up nearly 36 per cent against the same period last year, and up 15.5 per cent against the same period of 2019, the pre-COVID-19 period, according to the General Statistics Office. VNS