SABECO (SAB) posts highest profit in seven quarters
SABECO (SAB) posts highest profit in seven quarters
Saigon Beer - Alcohol - Beverage Corporation (SABECO) has announced a profit of roughly VNĐ1.32 trillion (US$52.8 million) in the second quarter and a total profit of VNĐ2.34 trillion ($93.6 million) in the first half of 2024, marking a 5.8 per cent increase from the previous year.
A beer production line of Saigon Beer - Alcohol - Beverage Corporation (SABECO). — Photo courtesy of the firm |
As the economy picks up, SABECO's business performance has started to show signs of growth and improved efficiency.
During the second quarter of 2024, SABECO made almost VNĐ8.1 trillion in revenue, a slight 2.7 per cent decrease compared to the previous year. However, the after-tax profit rose by 9 per cent to VNĐ1.32 trillion, with the gross profit margin improving from 29.9 to 30.2 per cent. This profit level marks the highest in the last seven quarters, starting from the fourth quarter of 2022.
In the financial report for the second quarter, SABECO's gross profit dipped by 1.9 per cent to VNĐ2.44 trillion, financial revenue fell by 24.8 per cent to VNĐ266.34 billion, financial expenses decreased by 52.2 per cent to VNĐ8.22 billion, and sales and administrative expenses were down by 21.1 per cent to VNĐ1.08 trillion.
The 9 per cent increase in profit during the second quarter was mainly due to better gross profit margins and lower sales and administrative expenses.
In the first half of 2024, SABECO recorded revenue of VNĐ15.27 trillion, a 5.1 per cent increase from the previous year, with an after-tax profit of VNĐ2.34 trillion, up by 5.8 per cent year-on-year.
SABECO attributed the revenue and profit growth to higher net revenue, driven by price hikes due to an improving economy, despite strict enforcement of Decree No 100/2019/NĐ-CP on administrative penalties for road traffic offences and rail transport offences and increasing competition.
Net profit was positively impacted by lower selling expenses, offsetting reduced income from interest and lower profits from joint ventures and associates.
In the remainder of the year, SABECO aims for revenue of VNĐ34.4 trillion, a 12.9 per cent increase, and expects an after-tax profit of VNĐ4.58 trillion, a 7.6 per cent rise compared to 2023.
With an after-tax profit of VNĐ2.34 trillion in the first half of 2024, SABECO has achieved 51.1 per cent of its annual set target.
Apart from its flourishing business, SABECO continues its cash generation strategy, with operating cash flow hitting VNĐ2.1 trillion in the first half of 2024, significantly higher than the same period last year.
As of June 30, SABECO's total assets grew by 0.3 per cent year-on-year to VNĐ34.15 trillion, with cash and short-term financial investments being the primary assets at VNĐ23.36 trillion, fixed assets at VNĐ3.77 trillion, and inventories at VNĐ2.35 trillion.
In the first half of 2024, cash and short-term financial investments increased by 2.5 per cent compared to the beginning of the year, rising by VNĐ577.5 billion to VNĐ23.36 trillion.
SABECO's robust profit growth, both in comparison to the same period and the previous quarter, stems from the company's enduring commitment to management strategies implemented consistently over many years. These strategies encompass controlling input costs, enhancing quality, and diversifying product designs to cater to the varied needs of diverse customer segments.
Simultaneously, the company has successfully restructured business and production processes, bolstered oversight, and provided guidance on sales programmes to boost efficiency and maintain uniformity across the system.
Notably, SABECO has diligently executed cost-cutting measures through effective production management initiatives. The renowned Bia Saigon and Bia 333 brands have continued to secure international accolades, winning gold and silver medals.
Ongoing initiatives, such as the expanded use of alternative energy in operations, have significantly reduced electricity consumption by 25 million kWh and curbed CO2 emissions by 18,000 tonnes. SABECO has notably installed solar power systems at nine beer factories within its network.
Concurrently, the company invests in community-oriented activities to foster positive socio-economic impacts. Upholding a business ethos that integrates social responsibility, SABECO has garnered recognition through various prestigious awards, including accolades for Employee-Centric Enterprises, Top 100 Corporate Social Investment (CSI), the Board of Directors Award for commitment to sound corporate governance practices, and inclusion among the Top 50 Best Listed Companies in Việt Nam.
