Sabeco: Both revenue and net profit in the first 6 months dropped by over 30%

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In the second quarter of 2020, SAB’s revenue reached VND 7,135 billion, down 21% compared to the same period in 2019.

During the quarter, cost of goods sold plummeted, causing gross profit to drop by only 8.5% to VND 2,207 billion. However, the sharp increase in expenses caused the after-tax profit to decrease by more than 20% to VND 1,215 billion.

Sabeco said the outbreak of Covid-19 from March 2020 in Vietnam and the implementation of Decree 100/2019 / ND-CP (related to fines for drinking alcohol) affected the production and business activities of this company.

However, Sabeco believes that the company’s business situation is regaining growth momentum as the market gradually recovers from the Covid-19 pandemic. Indeed, compared to the gloomy business results in the first quarter (after-tax profit: 716 billion), the results earned in the second quarter of 2020 of SAB is a significant improvement.

By the end of the first half of 2020, Sabeco’s accumulated revenue and profit in the first 6 months were VND 12,044 billion and VND 1,932 billion respectively, down 34% and 31% compared to the same period last year.

Facing potential challenges and difficulties, Sabeco’s management set a backward business plan in 2020. Specifically, the target net revenue and profit after tax in 2020 are VND 23,800 billion and 3,252 billion respectively. VND, respectively, down 37% and 39% compared to 2019. Thus, in the first 2 quarters of 2020, SAB has completed 50% of the revenue target and 59% of the profit target.

In terms of asset structure, total assets recorded on June 30, 2020 were VND 26,159 billion, a slight increase of nearly 3% compared to the beginning of the year, of which 70% were short-term assets. Short-term receivables of customers nearly doubled compared to the beginning of the year, reaching more than VND 305 billion. Inventory dropped by more than 20% to only 1,563 billion dong.

SAB’s total liabilities at the end of the second quarter of 2020 decreased by nearly 7% compared to the beginning of the year to only VND 6,417 billion. In which, long-term and short-term debt is only over 900 billion dong, down by 14%. Reportedly, in the first 6 months, SAB has spent over 1,300 billion dong to pay loan principal.

Sabeco was formerly a Cho Lon brewery belonging to B.G.I. SAB’s main business is to produce and trade beer, wine, soft drinks and related products. In 2016, SAB stock was officially listed on HoSE with the reference price of 110,000 VND / share.

At the end of 2017, during the state divestment, the head of Thaibev Group – billionaire Charoen Sirivadhanabhakdi, bought 53.59% of the charter capital at Sabeco with a total value of nearly 5 billion USD, equivalent to each share of 320,000 VND.

Source: vietnamfinance.vn