Vietnamese breweries report revenue decline
Vietnamese breweries report revenue decline
Several breweries in Vietnam have released their business results for the last quarter of 2023, which indicated falling year-on-year revenue.
A restaurant on Hoang Sa Street in District 1, Ho Chi Minh City experiences a sales slump. Photo: T.T.D. / Tuoi Tre |
Saigon - Hanoi Beer Corporation reported its net revenue at VND150.5 billion (US$6.1 million) last quarter, edging down three percent year on year.
Its after-tax profit reached over VND7 billion ($284,551) in the period, plunging 32 percent.
The corporation’s management board attributed the results to a fall in sales amid a cost hike.
In 2023 as a whole, the firm yielded revenue of over VND609 billion ($24.8 million), down three percent over 2022, and its after-tax profit tumbled 25 percent to VND43.4 billion ($1.8 million).
Facing the same fate, Hanoi - Thanh Hoa Beer Joint Stock Company’s sales fell 2.9 million liters in the last quarter of last year, citing the government’s Decree 100 with strict punishments for DUI drivers as a key reason.
As a result, the company’s net revenue hit a mere VND470 billion ($19.1 million) in Q4 last year, sliding 11 percent over the year-ago period.
The figure for the whole year was over VND1.5 trillion ($61 million), inching down six percent. Its profit was only some VND5 billion ($203,250), falling by half from 2022.
Hanoi - Hai Duong Beer Joint Stock Company’s Q4 financial report showed that the company produced a poor performance last quarter with a loss of over VND1.2 billion ($48,780) while it enjoyed a profit in the same period in 2022.
In 2023, it generated an after-tax profit of VND6 billion ($243,901), plunging 43 percent from 2022.
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| Restaurants in Ho Chi Minh City have seen fewer customers, so revenue of breweries has fallen. Photo: T.T.D. / Tuoi Tre |
Meanwhile, Saigon Beer - Alcohol - Beverage Joint Stock Corporation, commonly known as Sabeco, reported a 14-percent fall in revenue in the third quarter of last year, reaching VND7.5 trillion ($304.9 million).
Its after-tax profit also dipped 23 percent year on year to around VND1.1 trillion ($44.7 million).
In January-September 2023, Sabeco generated VND22.1 trillion ($898.4 million) in revenue and nearly VND3.3 trillion ($134.1 million) in after-tax profits, down 12 and 25 percent, respectively.
A Sabeco leader explained that fierce competition, lower demand given Decree 100, and higher material, sales and governance costs sent the firm’s turnover of beer and wine down 12 and seven percent, respectively, over the same period in 2022.
Habeco - Hai Phong Joint Stock Company was not an outsider to the trend with its after-tax profit tumbling nearly 75 percent to VND736 million ($29,918) in Q3 2023.
The firm reported that its production was equivalent to 79 percent, while its sales were equal to 74.09 percent of those in Q3 2022.
Furthermore, the prices of materials, including malt, rice, and sugar, increased sharply.
The company’s revenue in January-September last year fell 28 percent year on year.
Hanoi Liquor and Beverage JSC (Halico), which owns the Vodka Hanoi brand, also reported a loss of VND2.28 billion ($92,682) in Q3 2023.
Halico’s revenue in January-September 2023 totaled VND72.9 billion ($3 million), down 15 percent, and it sustained a loss of VND5.6 billion ($227,641) in the nine-month period.
Many breweries blamed their revenue and profit decline on falling consumption given the economic downturn and Vietnam’s heavy fines for alcohol-impaired drivers.
Vietnam’s law stipulates that drivers must be completely sober, not having downed any amount of alcoholic drinks, while operating bicycles, motorbikes, automobiles, or any other vehicles on the road.
Ho Chi Minh City police late last year launched an initiative to intensify blood alcohol content testing for suspected DUI drivers.
Under the campaign taking place from November 24, 2023 until the pre-Tet time span, more municipal traffic police officers were sent to the streets than normal to check if drivers had alcohol in their bodies.
They conduct breath testing both day and night.
The campaign helped improve locals’ awareness, reduce traffic accidents caused by drunk drivers, and protect the lives of commuters.
However, many restaurants and eateries offering alcoholic drinks and breweries have experienced a tough time due to falling sales.
