SABECO posts US$87.1 million after-tax profit in H1 despite COVID-19

A beer production line at SABECO. Its revenue in the first six months of the year reached VND13.1 trillion, slightly increasing by 9 per cent from the same period last year. — Photo courtesy of SABECO

The country’s largest brewer, Saigon Beer-Alcohol-Beverage Corporation (SABECO) hit more than VND2 trillion (US$87.1 million) after-tax profit in the first half of the year, posting a 6 per cent year-on-year increase.

SABECO on Thursday announced its business results in the first six months of the year, saying that they have implemented many comprehensive solutions to optimise business management and continue to promote sales activities. These have contributed to minimising the impact of the third and fourth waves of the COVID-19 pandemic and improve business efficiency.

Accordingly, its revenue in the first six months of the year reached VND13.1 trillion, an increase of 9 percent over the same period last year. Of this, VND11.6 trillion came from beer products, accounting for 89.1 per cent and selling raw materials contributed more than 10 per cent of total revenue. The rest was soft drinks, wine, alcohol and other items.

In the second quarter of the year alone, its revenue was VND7.2 trillion, the equivalent to the corresponding period last year.

COVID-19 saw SABECO reduce its expenditure markedly. Particularly, interest expenses decreased by 22 per cent while management costs were also cut by 54 per cent in the period.

However, the corporation’s spending on promotions and advertisements increased by 44 per cent to VND1.9 trillion.

This year, SABECO set a revenue target of VND33.5 trillion and profit of VND5.3 trillion.

By the end of June, SABECO's total assets reached VND28.5 trillion, up 4 per cent compared to the beginning of the year. This includes bank deposits with a term of three months to one year of VND15.2 trillion, accounting for 54 per cent of the total.

At its shareholders meeting in April, SABECO’s board of directors expected good business results.

However, SABECO is also dependent on the global economy, which is connected to export products as well as tourist arrivals.

The company expects vaccinations to be implemented quickly and efficiently globally. In this case, they could return to normal or near-normal in the next one to two years. — VNS