SABECO named top 10 F&B company for eighth year in a row
SABECO named top 10 F&B company for eighth year in a row
Saigon Beer-Alcohol-Beverage Corporation (SABECO) has once again been named one of the Top 10 Prestigious Companies in the Food and Beverage Industry for 2024 by Vietnam Report. This marks the eighth consecutive year SABECO has been featured in these rankings.
The Top 10 list is based on scientific and objective principles, evaluating companies on three main criteria. First, companies’ financial performance is considered, using the most recent financial reports. Second, media reputation is assessed through the Media Coding method, which ranks the coverage of companies across influential media channels. Finally, surveys are conducted with relevant stakeholders and industry experts to gauge public perception.
According to Vietnam Report, 2023 was a year marked by uncertainty, with global issues like the Russia-Ukraine conflict exacerbating economic challenges and inflation. The increase in input prices has had a significant impact on Vietnam’s economy, particularly affecting production due to supply chain disruptions and rising material costs.
The Vietnamese food and beverage (F&B) industry was not immune to these global pressures. Rising input material costs and difficulties in sourcing raw materials from abroad have increased production costs, affecting both prices and profit margins for businesses in the industry.
Despite these challenges, Vietnamese F&B companies have demonstrated resilience. Many have adapted by adjusting strategies, optimizing production processes, and seeking alternative solutions to mitigate the external impacts. These efforts have helped businesses navigate through difficult times while also creating momentum for growth in 2023.
For 2024, SABECO has set ambitious targets, aiming for almost $1.4 billion in net revenue and $190 million in profit–representing a 13 per cent and 8 per cent increase, respectively, compared to 2023.
In the second quarter of 2024, SABECO reported revenue of nearly VND8.1 trillion ($324 million), a slight decrease of 2.7 per cent on-year, while after-tax profit rose by 9 per cent to $52.8 million. The company’s gross profit margin also improved, rising from 29.9 per cent to 30.2 per cent. The second quarter of 2024 marked the highest profit SABECO has recorded in seven consecutive quarters since Q4 2022.
Looking ahead to 2024, SABECO’s business strategy includes focusing on brand-building and market development, refining product and distribution strategies, and aligning consumption with consumer trends. The company also plans to restructure its distribution system to enhance efficiency and strengthen control across channels and product segments.
With its vision to become a leading group not only in Vietnam but also to affirm its position in the region and globally, SABECO is committed to sustainable development through its 4C model: Consumption, Conservation, Country, and Culture.
The 4C model is built on four pillars: promoting responsible beer consumption; conducting business and production activities with a focus on environmental conservation; contributing to the sustainable development of Vietnam; and fostering traditional Vietnamese cultural values.
