2023 to be lucrative for SABECO (SAB)
2023 to be lucrative for SABECO (SAB)
Saigon Beer-Alcohol-Beverage Corporation (SABECO) has just released the agenda for its 2023 AGM, which will be conducted in Ho Chi Minh City on April 27, where the firm plans to announce a share issue at a ratio of 1:1.
The move means shareholders will receive a new share for every share they already own. Following approval from the State Securities Commission of Vietnam, SABECO's charter capital will increase to VND12.8 trillion ($546 billion).
In addition, the company is set to increase its 2022 dividend payment from 35 per cent to 50 per cent.
“Last year saw better results and a stronger performance than we saw in 2021 as Vietnam emerged from the lockdowns and strict public health regulations. Furthermore, SABECO has successfully executed a number of marketing and sales initiatives designed to boost brand sales and reach a wider range of customers,” a statement from the firm noted. It has also boosted production efficiency and implemented cost-cutting measures, mitigating the impact of rising input costs.
SABECO is projecting net revenue of VND40.28 trillion ($1.72 billion) for 2023, an increase of 15 per cent on-year, and an after-tax profit of VND5.78 trillion ($246 million), up 5 per cent on-year.
The brewer believes that the consumption of sub-premium beverages will continue to expand, despite trends suggesting a transition to lower-income consumer segments could impact its revenue.
SABECO plans to focus its resources on market growth by developing its brand and product range, along with new distribution network strategies and a move towards digitalisation. The expansion of its brewery in Quang Ngai is currently under operation.
Last year, the brewing giant recorded revenues of VND35 trillion ($1.5 billion), up 32.6 per cent from 2021, while after-tax earnings saw a 40 per cent on-year jump to VND5.5 trillion ($235 million).
Industry experts believe Vietnam's brewing industry could capitalise on lucrative opportunities this year, thanks to a combination of factors including a golden demographic structure, income growth, promising returns from non-alcoholic beers, and export market potential.
