Beverage giant SABECO (SAB) thirsty for $190 million profit this year
Beverage giant SABECO (SAB) thirsty for $190 million profit this year
Saigon Beer-Alcohol-Beverage Corporation (SABECO) has released reports ahead of its 2024 AGM, which will be held on April 25 in Ho Chi Minh City.
In 2024, SABECO plans to gain VND34.4 trillion ($1.4 billion) in revenue, up 12.9 per cent on year, while after-tax profit is expected to hit VND4.58 trillion ($190 million), an increase of 7.6 per cent on year.
SABECO said it is continuing to encounter difficulties in the beer market left over from the Covid-19 pandemic, and the impact of the Law on Preventing Harmful Effects of Alcohol. People are tightening their belts and consumers' tastes and requirements are becoming more and more stringent, in addition to fierce competition in the industry.
However, SABECO still expects opportunities for the Vietnamese beer industry such as a golden population structure, rapidly increasing incomes, the non-alcoholic beer segment, and export market potential.
Based on this, SABECO's plans for 2024 include brand building and market development, comprehensively restructuring its distribution system, and enhancing performance and management across channels and product segments.
SABECO will maintain its domestic market position and reach overseas markets; promote research and development to improve product quality and launch new products; improve supply chain efficiency throughout the SABECO system; strengthen reforms to raise investment efficiency, reduce operating costs, and increase productivity; and develop new trade channels, online sales, and take-away and on-site consumption.
SABECO will also focus more on applying renewable energy to reduce costs and mitigate climate change, establish environmental, social, and governance commitments to comply with international standards, and identify target initiatives by establishing a baseline and data to manage operating costs effectively.
Tan Teck Chuan Lester, CEO of SABECO commented, "We still see many challenges ahead. In the context of increasingly unstable socioeconomic conditions and changes in consumer tastes, we should not be afraid; we must push ourselves to overcome all limits and challenges ahead so that we are ready to seize long-term development opportunities."
Regarding its profit distribution plan, SABECO proposed a dividend of 35 per cent in 2023 and 2024.
In February 2024, SABECO advanced its 2023 dividend at a rate of 15 per cent in cash, equivalent to more than VND1.9 trillion ($79 million). In the plan, the corporation will pay the second dividend in 2023 at 20 per cent in cash (equivalent to VND2,000 per share) from undistributed after-tax profits. The ex-dividend transaction date will be July 5 and the expected payment date is July 31.
