SABECO FULL-YEAR 2022 PROFIT AFTER TAX RISES 40% TO RECORD VND 5,500 BILLION

SABECO FULL-YEAR 2022 PROFIT AFTER TAX RISES 40% TO RECORD VND 5,500 BILLION

 

 Ho Chi Minh City, 27 April 2023, at the Annual General Meeting (AGM), Saigon Beer - Alcohol - Beverage Corporation (SABECO), reported a record performance in 2022 as profit after tax grew 40% to VND 5,500 billion.

2022 Business Performance

According to Audited Consolidated Financial Statements 2022, SABECO recorded VND 34,979 billion in net revenue and VND 5,500 billion in profit after tax, an increase of 32% and 40% respectively as compared to 2021. This is a significant achievement compared to 2021 results and profit after tax is the highest in the history of the company.

Despite the various challenging market conditions and difficulties post COVID-19 pandemic, the 2022 results again demonstrated SABECO’s resilience and strength of the business it has developed. 

2022 also marked an important milestone for SABECO as the corporation progressed into Phase 2 of its transformation journey with 6 strategic pillars namely Sales, Brand & Marketing, Production, Supply Chain, People and Unlock supported by SABECO 4.0 and Governance. The excellent business result in 2022 also reflected SABECO's accomplishments in transforming its core business processes, accelerating its marketing and sales initiatives, improving continuous cost management and operational efficiency across the entire supply chain through SABECO 4.0 implementation.

Given the record profit, the Board had proposed a special dividend of 15%, which was approved at the AGM, bringing the full-year dividend of 2022 to 50%. To further enhance shareholders’ value, the proposal on bonus share issuance in the ratio of 1:1 was also approved at the AGM.

As part of long-term growth plan, SABECO has also expanded its mid-to-long-term strategic investment initiatives in 2022 with the aim to further strengthen SABECO fundamentals to support sustainable business growth. This includes the recent strategic moves to increase SABECO’s ownership in Saigon Binh Tay Beer Group JSC and Saigon Packaging Group JSC. These two companies will become subsidiaries upon completion of the relevant procedures.  In addition, SABECO also announced its intention to increase its ownership in Western-Saigon Beer JSC from 51% to more than 70%.  These moves will help SABECO to realise synergies, improve cost and operational efficiencies, and expand its product portfolio.

Mr. Bennett Neo - General Director of SABECO shared during the meeting “2022 was a breakthrough year for SABECO, with a new record in profit after tax. We were able to grow our market share, net revenue and profit after tax reaching VND 5,500 billion, an increase of 40% compared to 2021. This is a result of our collective efforts in driving sales, the right investment strategy and efficient cost management. SABECO affirms our continuous commitment to bringing out the best of Vietnam, and we have shown it throughout our activities and have continued to make outstanding progress in various areas to improve our competitiveness, and to strengthen our position as one of the leading beer companies in the region.”

2023 Priorities

In 2023, SABECO has set a revenue target of VND 40,272 billion and profit after tax at VND 5,775 billion, a 15.1% and 5% year-on-year increase, respectively.

SABECO will continue to step up its transformation journey with greater focus to improve its position in the domestic market and expand its penetration internationally through strategic efforts on sales and marketing activities, developing stronger product portfolio, strengthening its route to market and distribution, while continuing to drive production and supply chain efficiencies, as well as digitizing business processes within SABECO.

Together with its business development objectives and action plans, SABECO will continue reinforcing its 4Cs sustainable development commitment, which includes driving ESG initiatives that are in line with the corporate goals and Vietnam national strategies. The corporate is committed to continue its effort as a proud, prominent, and responsible corporate citizen to support its ambition to bring out the best of Vietnam.

The Chairperson of the AGM and Board Member, Mr. Michael Chye shared The business environment remains challenging with various uncertainties driven by the global economy, the unpredictable and fierce competition. However, we remain committed to investing in opportunities that drive long-term growth and increase shareholder returns. This will enable us to reward our shareholders with dividends that are sustainable and in line with the company’s long-term growth prospects.”

Change of General Director of SABECO effective 1st October 2023. 

It was announced today in SABECO Annual General Meeting of the appointment of Mr. Lester Tan Teck Chuan as its new General Director of SABECO effective 1st October 2023. Lester will succeed Mr. Bennett Neo Gim Siong who will be completing his 5-year term as General Director and will return to the head office at the end of September 2023.

Lester is currently the Chief Beer Business Thailand of Thai Beverage PLC and has assumed this role since 2020. With more than 25 years of experience in the beer industry leading various companies across multiple markets in Asia, Lester will begin as General Director of SABECO after the handover period.

The AGM Chairperson and Board Member Mr. Michael Chye said: “I would like to take this opportunity to thank Bennett for his sterling contributions to SABECO during his five-year tenure as General Director. The transformation journey spearheaded by Bennett since 2018, progressing from Phase 1 to now Phase 2 leaves SABECO a very good footing for sustainable success. Some of the initiatives kick-started by Bennett including the relaunch of Bia Saigon and 333 brands in 2019, the launch of new mass premium Bia Saigon Chill in 2020, SABECO 4.0, performance-based salary restructuring as well as the brewery capacity expansion projects and the recent brewery acquisition projects were instrumental to the transformation success of SABECO, building a solid foundation for further success. In addition, Bennett is a great supporter of CSR and has championed many activities, notably the “Rise with Vietnam” relay in 2020 where SABECO dedicated its 145th anniversary celebratory efforts to support the vulnerabilities during the COVID-19 pandemic by joining hands with the government.  Bennett will continue to lead SABECO until the end of this September and to ensure a smooth transition over to Lester.”

ABOUT SABECO

With 148 years of brewing history, Saigon Beer – Alcohol – Beverage Corporation (“SABECO”) has established itself as one of Vietnam’s leading companies.

SABECO includes 26 breweries and 11 trading subsidiaries and has a distribution network consisting of hundred thousand retailers nationwide. SABECO is proud to offer a brand portfolio that consists of some of the most well-loved beer brands in Vietnam, including Bia Lac Viet, Bia Saigon Chill, Bia 333, Bia Saigon Special, Bia Saigon Export, Bia Saigon Lager and Bia Saigon Gold.

Our flagship brands Bia Saigon and Bia 333 have been consistently recognized for its outstanding quality by prestigious local and international organizations, such as “National Brand” of Vietnam for several years. Most recently, it has received a gold medal at the International Brewing Awards 2019 (IBAs), the Gold, Silver and Bronze Prize at the International Beer Cup 2019 (IBC) and Gold, Silver Medal at Australia International Brewing Award 2020 (AIBA), Gold and Silver Medal at Monde Selection Award 2021.

With a commitment to investing in business development along with sustainable development, SABECO is always striving to create positive changes to enhance the position of the Vietnamese brand, while promoting positive development for the community and Vietnam. Accordingly, our sustainable development strategy focuses on four pillars: Consumption, Conservation, Country, and Culture.

For more information on SABECO, please visit:  www.sabeco.com.vn

Press information, please contact:

Saigon Beer-Alcohol-Beverage Corporation (SABECO)

Dinh Nguyen Thi Huong, Head of Corporate Communication – huongdnt@sabeco.com.vn

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