Vietnam: Vietnam’s leading brewers report satisfactory profits for Q2

Habeco and Sabeco, the two biggest brewers in Vietnam, have reported satisfactory profits for the second quarter thanks to more demand in summer, improved economic performance, and Euro 2024, VietNamNet reported on August 12.

Habeco, which is dominating the northern market, has reported a revenue increase of 11 percent in the second quarter of the year to VND2.306 trillion, most of which came from finished product supply (VND2.264 trillion).

The slow increase in cost allowed Habeco to obtain a gross profit increasing sharply by 21 percent compared with the same period last year.

Meanwhile, its financial revenue decreased by 32 percent to VND40 billion, which was attributed to lower bank deposit interest rates and lower lending interest rates, from VND56 billion the same period last year to VND38 billion in the second quarter this year.

After deducting expenses, Habeco had a pre-tax profit of VND221 billion and post-tax profit of VND172 billion, a four percent and nine percent decrease, respectively.

Though its profit in the second quarter dropped compared with the same period last year, the business performance was very encouraging if noting that Habeco had experienced three quarters of profit decreases. The first quarter of 2024 witnessed the biggest loss in the last four years, at VND21 billion.

Though Habeco did not explain the profit increase, analysts believe that the brewer’s performance was supported by the summer heat (it is now the peak of summer in the north). Also, the ongoing Euro 2024 helped recover Habeco’s business results.

Habeco’s accumulated revenue reached VND3.614 trillion in the first half of the year, up 11 percent over the first half 2023, while post-tax profit reached VND151 billion, down 18 percent.

The brewer plans to obtain revenue of VND6.543 trillion this year and post-tax profit of VND202 billion, which are both lower than the figures in 2023. This means that to date, Habeco has fulfilled 75 percent of the targeted profit.

On August 6, Habeco shares (BHN) were traded at VND38,000 per share.

Sabeco, which is dominating the southern market, also had impressive business results in the second quarter with net revenue down by 3 percent to VND8.086 trillion, but post-tax profit up by 8 percent, reaching VND1.248 trillion, a seven-quarter high.

Sabeco reported that its revenue fell and profit increased thanks to measures to cut costs (financial costs, sale costs and corporate governance costs).

Its expenditures in advertisements and sale promotion programs accounted for the largest proportion, reaching VND1.031 trillion, which was 16 percent lower than that of the same period last year.

In the first six months of the year, Sabeco had VND15.27 trillion of net revenue and VND2.246 trillion in net profit, up by 5 percent and 6 percent, respectively.

Sabeco shares were traded at VND53,300 per share on August 6.

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