Sabeco targets profit growth of 17 per cent in 2022

Thursday, Apr 21, 2022 07:28

A new collection of Sabeco beer cans. — Photo

Sabeco (SAB) set business targets of nearly VND35 trillion (US$1.5 billion) in revenue and VND4.58 trillion in profit in 2022, the beverage producer said in a document for the General Meeting of Shareholders.

Both the forecast revenue and profit increased by 32 per cent and 17 per cent year-on-year, to near pre-Decree 100 levels.

Decree 100 strictly prohibits driving a vehicle after consuming any alcohol.

The company's target is the most positive in the industry.

Even though the industry has been heavily hit by unprecedented events - the COVID-19 pandemic and new taxes on alcoholic drinks - the recovery of the tourism industry and reopening of restaurants and food services will boost demand for alcoholic drinks, Sabeco said.

A report from Mirae Asset Securities Viet Nam said that beverage is one of the industries with a positive profit growth outlook. The securities firm expects that the consumption of beverages, especially alcoholic drinks, will not be disrupted by a social distancing order as it was in 2021.

In 2021, Sabeco's profit after tax dropped by more than VND1 trillion over 2020 to VND3.93 trillion. However, the company said that its business recovered strongly in the last quarter of 2021 as cities and provinces in the south reopened after a long shutdown to fight the pandemic.

Its net revenue during the period rose by 14 per cent on-year to VND9 trillion. While profits after tax fell 9 per cent to VND1.4 trillion, it was the highest quarterly result of the year.

Meanwhile, Saigon - Mien Trung Beer JSC (SMB) profit still grew by two digits, with a dividend rate of up to 35 per cent.

In a document to shareholders, the company said that although its beer consumption only reached 176.72 million litres, about 87.49 per cent of the annual plan, its profit before tax was VND189.81 billion last year, equal to 124.2 per cent of plan.

On the stock market, SAB shares were traded at VND172,300 per share at 1:45pm (local time), while SMB shares were down 0.12 per cent to VND41,350 a share. Both stocks are traded on the Ho Chi Minh Stock Exchange. — VNS

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