Looking back on 2020, Sabeco in particular and the alcohol industry in general have had a relatively hard time. Q1/2020 is the time to best show the impact of dual impact (Covid-19 and Decree 100), when Sabeco or alcohol businesses in general have not yet adapted to the change of external factors.
The 717 billion dong of after-tax profit earned in the first quarter of 2020 is the lowest after-tax profit (quarterly) that Sabeco has ever recorded since 2014. At the time of the first quarter business results announcement, Sabeco’s management remained optimistic and said that “this storm will soon pass and the bright sun will reappear”.
The business performance of the following quarters improved, helping Sabeco to still reach 27,961 billion in revenue and 4,937 billion in profit, although down 26% and profit down 8% yoy, but still quite good. Warm to business.
Along with that, thanks to a modest business plan compared to the previous year, Sabeco still exceeded its revenue and profit targets, in which profit exceeded 51.8%.
With this result, the Board of Directors will submit to shareholders the approval of a dividend rate of up to 35%, equivalent to a share of 3,500 VND.
On the stock market, Viet Capital Securities Company (VCSC) recently made a buying recommendation for SAB shares, based on the forecast that corporate profits will increase sharply in 2021, based on last year’s low comparison and the recovery of business activities after difficulties from the pandemic, Decree 100.
VCSC forecasts beer segment revenue will recover 11% in 2021 from a low base, thereby recording a CAGR of 10% in the period 2021-2023 thanks to both volume and selling price. Besides the industry’s recovery, VCSC expects Sabeco’s new products, especially “Saigon Chill” (high-end low-end segment), will boost the company’s market share.
At the end of the session on April 7, SAB shares dropped 1,000 dong to 177,000 dong / share.
Source: vietnamfinance.vn – Translated by fintel.vn