Vietnam: Sabeco’s after-tax profit up 40% in 2022

Brewer Sabeco said its after-tax profit rose by 40% last year to VND5.5 trillion.
Vietnam’s biggest brewer had net revenues of VND34.98 trillion, an increase of 32% from 2021, VNExpress International reported on April 27.

These are significant achievements compared to the 2021 results.

The 2022 profit figure was the highest in the history of the company, and was achieved despite the challenging market conditions and various post-pandemic difficulties.

The year also marked an important milestone for Sabeco as it entered phase 2 of its transformation journey focusing on sales, branding & marketing, production, and supply chain.

The 2022 results also reflected Sabeco's accomplishments in transforming its core business processes and accelerating its marketing and sales initiatives.

It is improving cost management and operational efficiency across the entire supply chain through implementation of Sabeco 4.0.

Given the record profit, the board proposed a special dividend of 15%, which was approved at the AGM, bringing the full-year dividends for 2022 to 50%.

To further enhance value for shareholders, it was proposed to issue bonus shares at a ratio of 1:1, and was also approved.

As part of its long-term growth plans, Sabeco also expanded its mid-to-long-term strategic investment initiatives in 2022 to support sustainable business growth.

This includes recent strategic moves to increase ownership in Saigon Binh Tay Beer Group JSC and Saigon Packaging Group JSC. The two companies will become subsidiaries when the process is completed.

Sabeco also announced plans to increase its stakes in the Western-Saigon Beer JSC from 51% to more than 70%.

At the meeting, general director of Sabeco, Bennett Neo, said 2022 was a breakthrough year with record profits.

"We were able to grow our market share and net revenues, and profit after tax reached VND5.5 trillion, an increase of 40% over 2021. This is a result of our collective efforts to drive sales, the right investment strategy and efficient cost management."

For 2023 Sabeco has a revenue target of VND40.272 trillion and a profit target of VND5.775 trillion, increases of 15.1% and 5% from the previous year.

The company said it would continue to strengthen its 4Cs sustainable development commitment, which includes driving ESG initiatives that are in line with its corporate goals and Vietnam's national strategies.

The corporation is committed to continuing its efforts as a proud, prominent and responsible corporate citizen to bring out the best in Vietnam.

The chairperson of the AGM and board member Michael Chye said the business environment remains challenging with various uncertainties caused by the global economy and unpredictable but fierce competition.

However, Sabeco remains committed to investing in opportunities that drive long-term growth and increase shareholder returns, he said.

"This will enable us to reward our shareholders with dividends that are sustainable and in line with the company's long-term growth prospects."

A change of general director was also announced at the annual general meeting and will be effective from October 1, 2023. Lester Tan Teck Chuan will become the new general director.

Lester is currently Senior Vice President, Chief Beer Business, at Thai Beverage PLC and has been at this role since 2020.

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