The brewer released a consolidated financial statement of its fourth quarter report for 2022, in which it recorded revenues of more than VND10.1 trillion ($430.68 million) in the period, a sharp increase compared to the first three quarters of the year and an increase of 11.4 per cent over the same period in 2021.

The report released that in the last quarter, SABECO’s selling expenses increased sharply by more than 70 per cent to VND1.61 trillion ($68.6 million), mainly due to advertising and marketing expenses for the pre-Lunar New Year sales quarter. This is the main reason why SABECO’s profit after tax declined over the same period last year, in spite of the increase in net revenue by 11 per cent.

For the whole of 2022, SABECO’s net revenues reached VND35.23 trillion ($1.5 billion), an increase of nearly one-third as compared to 2021. This is the highest profit since ThaiBev acquired it in 2017.

Last year, business performance improved and was deemed higher than last year as the country emerged from lockdowns. Various consumer promotion and creative marketing programmes helped to complement the many sales initiatives for brands in the market.

“The company has also improved production efficiency and implemented cost-saving measures, helping to reduce the impact of higher input costs,” a company spokesperson said.

SABECO has invested VND2.6 trillion ($114 million) in joint ventures, associates, and other entities, most of which are beer companies. Its inventory index at the end of Q4 was at VND2.19 trillion ($95.35 million), up 31 per cent on-year. At the same time, short-term receivables were VND897 billion ($39 million), up 92 per cent compared to the beginning of the year.

In 2017, ThaiBev – best known for beer brand Chang – acquired over 340 million shares, equivalent to 53.6 per cent of SABECO, at a unit price of VND320,000 (nearly $14).

“SABECO is our crown jewel – a rare asset among all brewing assets in the region,” said Charoen Sirivadhanabhakdi, chairman of ThaiBev in September.

SSI Research believes that SABECO’s revenues and profit in the first six months of 2023 can surpass that of the previous year thanks to the complete reopening of hotel services, restaurants, and entertainment activities, as well as higher numbers of foreign tourist arrivals.

Therefore, SSI Research expects SABECO’s net revenues and profit in 2023 to increase around 12.9 and 7 per cent as compared to 2022, respectively.

With 148 years of brewing history, SABECO has established itself as one of Vietnam’s leading companies. It includes 26 breweries and 11 trading subsidiaries and has a nationwide distribution network of thousands of retailers. Its brands in Vietnam include Bia Lac Viet, Bia Saigon Chill, Bia 333, Bia Saigon Special, Bia Saigon Export, Bia Saigon Lager, and Bia Saigon Gold.

According to the Vietnam Beer-Alcohol-Beverage Association, 2023 will suffer from many negative consequences stemming from the micro and macro environment, challenging the recovery and development of the industry.

“The geopolitical situation in Europe and elsewhere is continuing, and there are high inflation, economic slumps, and high-interest rates to deal with globally,” said the association’s chairman Nguyen Van Viet. “All of these have an impact on how the domestic economy is recovering and growing, particularly for companies in the beverage sector.”