Vietnam: Brewer Sabibeco posts sharp turnaround in performance since acquisition by Sabeco

The 20-year-old Saigon Binh Tay Beer Group (Sabibeco) has posted a sharp turnaround in performance after top brewer Saigon Beer-Alcohol-Beverage Corporation (Sabeco) took control of the company, The Investor reported on November 11.

Sabibeco’s Q3 financial report showed revenue of nearly VND745 billion ($28.32 million), up 53.7% from a year earlier, while net profit soared to VND66 billion ($2.51 million) from a loss of nearly VND10 billion in the same period last year - a rise of 833%.

The Ho Chi Minh City-based company attributed the improvement to cost reductions and lower borrowing expenses.

Financial costs fell 48% year-on-year to VND2.5 billion as short-term debt dropped to under VND149 billion ($5.66 million) by September 30. Selling expenses declined to VND2.4 billion from VND7 billion, while administrative costs eased to VND12 billion from VND13.6 billion.

Gross profit in Q3 surged 553% year-on-year to nearly VND86 billion ($3.27 million). Pre-tax profit reached VND71 billion, while profit after tax hit VND66 billion ($2.51 million). In the same period last year it lost nearly VND10 billion.

For the first nine months of 2025, Sabibeco reported net revenue of VND2.31 trillion ($87.65 million), up 52%, and net profit of VND108 billion ($4.11 million), reversing a loss of VND76.5 billion in the same period last year.

The strong results were largely driven by Sabeco’s support. Revenue from sales and services to its parent company reached VND1.34 trillion ($50.86 million), accounting for 58% of Sabibeco’s total.

Sabeco allocated higher Saigon Beer production volumes to Sabibeco, helping stabilize its finances and streamline operations, the company said.

Founded in 2005, Sabibeco is the producer of Sagota Beer, operating breweries across Vietnam in Ho Chi Minh City, Dong Thap, Ninh Thuan, Ha Nam, and Dong Nai.

Before Sabeco’s acquisition, Sabibeco faced prolonged difficulties due to losses at its four subsidiaries and two affiliates.

In October 2024, Sabeco announced plans to acquire 43.2% of Sabibeco’s charter capital through a public tender offer at VND22,000 ($0.84) per share.

The offer, conducted from October 31 to December 25, 2024, was successful, raising Sabeco’s ownership to 65% and giving it full control of Sabibeco.

On February 20, 2025, Sabibeco held an extraordinary shareholders’ meeting approving the resignation of chairman Van Thanh Liem and electing a new board chaired by Tan Tack Chuan Lester, who is also Sabeco’s CEO, along with board members Lam Du An and Pham Thi Thanh Thuy.