SABECO SETS OBJECTIVE TO SUSTAIN ITS GROWTH TRAJECTORY IN 2024

Ho Chi Minh City, April 25, 2024, at the 2024 Annual General Meeting of Shareholders (AGM), Saigon Beer - Alcohol - Beverage Corporation (SABECO) has announced its business results in 2023, boasting a profit after tax of 4,255 billion VND. Leveraging market insights and mindful of global and Vietnam's economic forecasts, SABECO has outlined ambitious growth objectives for 2024, while pushing on commercial excellence, production efficiency and promoting Environment, Social and Governance (ESG).

2023 PERFORMANCE

In 2023, Vietnam's beer market faced significant challenges, including rising raw material costs as a result of disruptions in the global supply chain, rising inflation rates, and interest rates, and reduced consumer spending amid the economic recession, as well as the stringent enforcement of relevant policy. According to General Statistics Office of Vietnam, Vietnam witnesses a remarkable decrease in beer consumption, especially in the closing of 2023.

2023 Consolidated Financial Report reports that SABECO recorded 30,461 billion VND in revenue and 4,255 billion VND in profit, representing 76% and 74% respectively of the targets set out at AGM 2023. Reflecting on these business outcomes, the Board of Directors (BOD) suggested and approved a final dividend rate of 20%, resulting in a 35% annual dividend rate for shareholders.

Mr. Lester Tan - General Director of SABECO shared at the AGM: “While this result represents a 23% drop from a year ago, we remain a healthy and profitable company that continues to deliver significant dividends to our shareholders. Changes are made so that regardless of changing market dynamics, Bia Saigon will stand to remain the leading beer brand in Vietnam.”

To attain such results, SABECO has been concentrating on three key areas: Commercial Excellence, Supply Chain Efficiency and ESG.

• Commercial Excellence: Series of culture – culinary events of Dem Saigon, Vung Tau Beerfest, The Chill Fest, “Sao Cua Moi Cuoc Vui” singing competition and the Tet campaign “Don Tet Rong, Nhan Boi Loc” were successfully rolled out. These activities have not only helped SABECO strengthen their connection with the consumers, but also foster tighter bonds with the local distributors and stakeholders in its value chain, thereby, increase the sale chances.
• Supply Chain Efficiency: Cost saving and effective production initiatives were implemented to foster this area. SABECO also completed the Warehouse Master Plan Project to enhance the management capability of supply chain and accelerate the route-to-market process.
• ESG: In 2023, SABECO has established Nomination and Remuneration Committee (NRC) and Sustainability and Risk Management Committee (SRMC). This is to support and ensure that all areas of operation and production follow the ESG objective set by the group and Vietnam. Furthermore, SABECO installed the rooftop solar power to nine of its breweries, in parallel with fostering the environmental impact control protocol and corporate social responsibility to generate positive socio-economic values.

  Strategically follow these three key pillars has helped SABECO to achieve outstanding recognition in 2023, including:

• Regarding market shares, Bia Saigon remains leading position in the market.
• Effectiveness enhancement in production management helps boost the cost efficiency; Bia Saigon’s product line, Bia 333 won gold and silver medals from Beverage Testing Institute (BTI).
• Renewable energy adoption helped the corporation to reduce electricity usage to approximately 25 million kWh, equivalent to 18,000 tons of CO2 emission reduction.
• ESG initiatives and Corporate’s Social Responsibility has brought SABECO to recognized with “Outstanding Enterprise for Employee”, “Top 100 Sustainable Businesses in Vietnam (CSI100)”, “Boards of Director committed to Corporate Governance Best Practice Awards”, “Top 50 Best Listed Companies in Vietnam”,..

Growth Priority in 2024

Considering favorable opportunities such as Vietnam's golden population structure, rapidly growing income levels, as well as the evolving policy landscape and global economic projections for 2024, SABECO sets a target of net revenue of 34,397 billion VND, profit of 4,580 billion VND in 2024, an increase of 13% and 8% in respectively compared to 2023.

In order to attain the objectives for 2024, SABECO is steadfast to reinforce its 3 areas of Focus including: Commercial Excellence, Supply Chain Efficiency and ESG.

Mr. Koh Poh Tiong, Chairman of the Board of Directors said: “This year, the Board has prioritized the Corporation’s sustainability and risk management agenda through the newly established Sustainability and Risk Management Committee (SRMC). The SRMC will provide guidance to the Management team ensuring the effective implementation of ESG objectives and initiatives, while working closely with the Board and Audit Committee to ensure risk management systems are implemented effectively, safeguarding the interests of our shareholders.”. “We look forward to your continued support and you being part of our growth journey for reaching greater heights together.”, he emphasized.

ABOUT SABECO

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

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 their outstanding quality by prestigious local and international organizations, such as the “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 Prizes at the International Beer Cup 2019 (IBC), and the 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

For press information, please contact:

Saigon Beer-Alcohol-Beverage Corporation (SABECO)

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