Vietnam: Large beer makers hit especially hard by the COVID-19 outbreak during the second quarter

The COVID-19 outbreak during the second quarter has especially hit Vietnam’s large beer makers, VietnamPlus reported on August 13.

In its second-quarter business results, Hanoi Liquor And Beverage JSC (Halico, HNR) said that its net revenue continued to drop 37 percent year-on-year to more than 17.2 billion VND (756,574 USD), resulting in a loss of 12.35 billion VND in profit after tax, nearly double the loss of 6.5 billion VND in the same period last year.

In the first quarter, the company posted a rise of 34 percent in revenue to nearly 36 billion VND, with a loss of just 1 billion VND.

As of June 30, Halico lost 13.3 billion VND, raising the total accumulated undistributed loss to 458 billion VND.

Restrictions on gatherings and parties during each outbreak to contain COVID-19, along with regulations on deterring drink driving, caused a strong fall in alcohol demand.

Meanwhile, Sabeco (SAB) reported consolidated revenue in the second quarter of 7.27 trillion VND, similar to the same period last year. It still recorded a profit after tax of 1.2 trillion VND, but as expenses increased sharply during the period, the indicator dropped 12 percent.

In the first six months of 2021, its revenue reached 13.2 trillion VND, up 9 percent over the year, with profit after tax climbing 6 percent to nearly 2.1 trillion VND.

Sabeco said that it has implemented many comprehensive solutions to optimise management and continue to promote sales activities, minimising the impact of the third and fourth wave of the pandemic and improving business efficiency. According to the report, the company's total advertising and promotional expenses in the first half of the year increased by 62 percent year-on-year to 1.24 trillion VND.

Accounting for a large market share in the north, Habeco (BHN) also ended the second quarter with a decrease in profit over the same period.

Its financial statement showed that Habeco’s net revenue reached over 1.9 trillion VND, down 9 percent compared to the second quarter of 2020.

Due to the rise in expenses, its profit after tax declined by 26 percent over last year to 182 billion VND. Habeco said that the increase in expenses was mainly due to advertising, promotion, support and other expenses.

This is consistent with the plan to focus resources on promotional programmes approved by Habeco shareholders at the latest Annual General Meeting of Shareholders in 2021.

In the first six months of the year, Habeco achieved 3.3 trillion VND in net revenue and 230 billion VND in profit after tax, rising 15 percent and 58 percent, respectively.

Besides Sabeco, Habeco and Halico, most listed beer companies in the market are subsidiaries and joint ventures related to the branded products of Saigon Beer or Hanoi Beer.

Companies like Saigon Beer Western (WSB), Saigon - Phu Tho Beer (BSP), SaiGon-SongLam Beer (BSL), and Sai Gon - Mien Trung Beer JSC (SMB) recorded great performance.

Accordingly, Saigon Beer Western’s net revenue and profit after tax climbed 35 percent and 16.2 percent, respectively, in the second quarter.

SaiGon-SongLam Beer and Sai Gon - Mien Trung Beer also recorded strong growth in profit, up 43 percent and 29.5 percent, respectively.

And while Saigon - Phu Tho Beer witnessed a small fall of nearly 2 percent, its profit after tax still gained 54 percent during the same period. The rise in profit was mainly driven by a strong decline in expenses in financial activities and sale expenses.

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