Vietnam: Sabeco sees post-tax profit plunge 23% yoy in Q3
Brewer Sabeco saw its post-tax profit plunge 23% year-on-year in the third quarter, landing at VND1.07 trillion ($43.54 million) so far, due to rising competition and expenses amid low demand, VnExpress International reported on October 27.
The brewer of Vietnam’s ubiquitous Saigon Beer saw revenues drop over 14% year-on-year during the period, landing at VND7.5 trillion.
The company, owned by Thai beverage giant ThaiBev, reported that the drop came was the result of intensifying competition, high input costs, and low demand alongside "economic uncertainties."
Sabeco was also not able to make considerable cuts in management and sale expenses, according to the firm.
In the first nine months, the company saw post-tax profit drop 26% to VND3.3 trillion, while revenue fell 12% to VND22.1 trillion.
This means the company had only met 57% of its profit target for the year at the end of September, with only three more months remaining in 2023.
Earlier this year Sabeco leaders said that Vietnam’s beer industry was poised for "a golden opportunity" thanks to rising Vietnamese incomes and the large potential of the non-alcoholic market.
Sabeco’s profits, however, have been on the decline since the second quarter last year.
Vietcombank Securities forecast that the brewer will see revenue rise only 6% in total this year instead of its target of 15%.
Earlier this month, Sabeco appointed Singaporean Lester Tan Teck Chuan as its new CEO to replace Bennett Neo Gim Siong, who had completed his five-year term in Vietnam.
Chuan has 28 years of experience in the beer and beverage industry and was previously in charge of the Thailand market for ThaiBev from 2020 until this month.
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