Vietnam: Sabeco approves plan to raise its charter capital

Saigon Beer-Alcohol-Beverage Corporation, also called Sabeco, has approved a plan to issue more than 641 million bonus shares to raise its charter capital, Viet Nam News reported on August 25.

The shares will be given to existing shareholders at the rate of 1:1, meaning that a shareholder owning 1 share will receive 1 additional issued share. The issuance source is taken from surplus equity and retained earnings as of December 31, 2022, according to the audited single financial statements for 2022.

The deadline for shareholders to register is September 15, while the ex-dividend date is September 14.

After the issuance is completed, Sabeco's charter capital is expected to increase from more than VNĐ6.4 trillion (US$267.2 million) to nearly VNĐ12.83 trillion.

Vietnam Beverage Co., Ltd., Sabeco's largest shareholder with an ownership of 53.59 per cent of the capital, is expected to receive an additional 343.6 million shares, while the Ministry of Industry and Trade, which holds 36 per cent of capital, will receive nearly 231 million units.

With a record profit after tax of VNĐ5.5 trillion in 2022, the company's 2023 Annual General Meeting of Shareholders approved an increase of 15 per cent in cash dividend to 50 per cent, meaning a shareholder will receive VNĐ5,000 a share.

The Vietnamese leading brewer also decided to reward shareholders with shares at the rate of 1:1.

This is the company's highest dividend level after it was acquired by a Thai enterprise in 2017.

In the first six months of the year, Sabeco posted a net revenue of VNĐ14.5 trillion and net profit of over VNĐ2.1 trillion, down 10.9 per cent and 27 per cent, respectively, compared to last year.

According to Viet Capital Securities (VCSC), Sabeco's business result is expected to recover in the second half of 2023 and in 2024 thanks to the improvement of consumer confidence, reduced VAT (VAT), and rising tourism activities.

However, in a more cautious report in June, Vietcombank Securities Company (VBSC) said that in the short term, the beer industry's outlook is expected to slow down in 2023 as consumers tighten their spending.

Sabeco's executive board forecasts that the company's gross profit margin will remain stable this year despite the impact of high input costs. The company also expects input costs to reduce in 2024 while profit margins will be supported by other cost optimisation measures.

In 2023, Sabeco set targets of VNĐ14.5 trillion in revenue and over VNĐ2.2 trillion in profit after tax.

On the stock market, Sabeco's shares are traded on the Hồ Chí Minh Stock Exchange (HoSE) with a ticker symbol SAB. SAB closed on August 24 at VNĐ153,500 a share, a gain of 2.27 per cent.

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