With a clear focus on sustainable growth, SABECO aims to achieve net revenue of VNĐ34.3 trillion - up 13 per cent from 2023 - and maintain the 35 per cent dividend payout. Photo courtesy of SABECO

HÀ NỘI — Saigon Beer - Alcohol - Beverage Corporation (SABECO, SAB) has outlined its strategic plans for 2024, targeting an after-tax profit of VNĐ4.58 trillion, reflecting a 7.6 per cent increase over the previous year.

The company also intends to maintain a robust 35 per cent cash dividend, amounting to nearly VNĐ4.5 trillion.

The announcement comes ahead of the Annual General Meeting of Shareholders, scheduled for April 25 in HCM City. In its report, SABECO acknowledged the ongoing challenges faced by the Vietnamese beer industry, notably the lingering effects of the COVID-19 pandemic and stringent regulations, such as the Law on Prevention and Control of Harms of Liquor and Beer Abuse and Decree 100/2019, which have impacted business performance.

Despite these hurdles, consumer trust in Bia Saigon remains strong, although companies are feeling the pressure to adapt to changing consumer preferences for packaging, quality, and sustainability. As spending tightens, SABECO recognizes the need for increased investments in advertising and promotion to remain competitive.

Additionally, the high costs of production, packaging, and raw materials continue to pose significant challenges. The anticipated adjustment of the special consumption tax on alcoholic beverages, proposed by the Ministry of Finance, could further strain the industry.

In 2023, SABECO reported net revenue of VNĐ30.6 trillion and an after-tax profit of VNĐ4.25 trillion, down 13 per cent and 23 per cent respectively from 2022's record figures. The company successfully raised its charter capital by issuing over 641 million shares to existing shareholders on a 1:1 basis.

To reward shareholders, SABECO will implement a 35 per cent cash dividend for 2023, which includes an interim payment of 15 per cent made in February and a planned second payment of 20 per cent set for July 31, 2024.

Looking ahead: regaining growth momentum

Despite the challenges, SABECO is optimistic about 2024, identifying "golden opportunities" in the Vietnamese beer market, including a favourable demographic profile, rising incomes, and potential growth in the non-alcoholic beer segment and export markets.

With a clear focus on sustainable growth, SABECO aims to achieve net revenue of VNĐ34.3 trillion - up 13 per cent from 2023 - and maintain the 35 per cent dividend payout. The company also plans to increase compensation for its Board of Directors, with an expected total remuneration of VNĐ5.4 billion, a significant rise from the previous year.

To meet its ambitious goals, SABECO's Board of Directors has outlined key initiatives for 2024, including: focusing on brand building and distribution strategies that align with consumer trends; strengthening its domestic market presence while exploring international opportunities; investing in research and development to enhance product quality and introduce new offerings and improving supply chain efficiency and integrating advanced human resource management practices to boost employee performance.

With these strategies in place, SABECO is poised to navigate the challenges ahead while seizing new growth opportunities in the dynamic beer market. — VNS