Vietnam: Sabeco to pay every shareholder VND1,500 per share for 2018 dividend plan

The Saigon Beer-Alcohol-Beverage Corporation (Sabeco) will pay every shareholder VNĐ1,500 (US$0.06) per share, or a 15 per cent cash dividend rate, to complete its 2018 dividend plan, the Viet Nam News reported on August 26.

The company will finalise the list of beneficial shareholders on September 6 and payment will be made on September 27.

With more than 641.28 million shares listed on the Ho Chi Minh Stock Exchange, Sabeco will have to pay VNĐ960 billion ($42.24 million) to shareholders this time.

Sabeco shareholders approved the 15 per cent cash dividend rate in April, raising the firm’s 2018 must-pay dividend rate to 50 per cent from previous 35 per cent.

In December and October 2018, Sabeco made two advanced cash dividend payments for shareholders, worth total VNĐ2.24 trillion.

In 2018, Sabeco earned VNĐ36 trillion worth of total revenue, up 5.1 per cent year on year. Its post-tax profit fell 11 per cent year on year to VNĐ4.4 trillion. The company recorded its undistributed post-tax profit had reached VNĐ7.47 trillion as of December 31, 2018.

In the first half of 2019, the brewery posted a 9 per cent increase in total revenue, which was VNĐ18.4 trillion. The firm also saw its profit gain 16 per cent year on year to VNĐ3.45 trillion in the first six months.

In 2019, Sabeco targets to achieve nearly VNĐ39 trillion in total revenue and VNĐ4.7 trillion in net profit. The figures are respectively up 8.3 per cent and 6.8 per cent year on year.

In late 2017, Vietnam Beverage – the Viet Nam-based unit of Thai Beverage Public Company Limited (ThaiBev) – purchased 343.6 million Sabeco shares or 53.58 per cent of the Vietnamese brewer’s charter capital for VNĐ110 trillion.

After ThaiBev completed its purchase of Sabeco shares, worries about the prospects of the Vietnamese brewer sent its shares down 40.5 per cent from the record high of VNĐ329,460 ($14.5) per share on November 29, 2017.

Since then, Sabeco shares have gained 42 per cent to end at VNĐ278,400 per share on August 23.

The growth of Sabeco shares shows investors have reacted well to the company’s performance, especially with ThaiBev topping the firm’s governance system, according to Bảo Việt Securities Co (BVSC).

ThaiBev has made significant changes in the structure of Sabeco and the restructuring was the reason for increased earnings in the first half of 2019.

Efforts have been made to win market shares in major local markets like Đà Nẵng and HCM City, cut production and logistics expenses, and increase the firm’s total production capacity.

The company might continue to beat its 2019 full-year earnings targets, BVSC said.

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