Saigon Beer production facility in Củ Chi District, HCM City. — Photos courtesy of SABECO

HCM CITY — Saigon Beer-Alcohol-Beverage Corporation (SABECO) reported strong financial results for the first quarter of 2026, with profit after tax rising 56 per cent year-on-year, providing a solid foundation for achieving its full-year targets.

By the end of Q1, the company had fulfilled over 22 per cent of its annual revenue plan and 25 per cent of its after-tax profit target, signalling positive momentum as SABECO continues to pursue a growth strategy focused on quality and efficiency.

In the first quarter, SABECO recorded net revenue of VNĐ6.457 trillion (approximately US$258 million), up 11 per cent compared to the same period last year.

Profitability improved significantly, with gross profit reaching VNĐ2.405 trillion, a 28 per cent increase, while cost of goods sold rose by only 3 per cent. As a result, pre-tax profit climbed 51 per cent to VNĐ1.548 trillion, and after-tax profit surged 56 per cent to VNĐ1.245 trillion.

The strong performance was largely driven by higher sales volume, supported by favourable timing of the Lunar New Year, which fell in mid-February in 2026 compared to late January in 2025. Additionally, price adjustments implemented from July 2025 contributed to improved margins.

Lower financial and administrative expenses also reflected effective cost management efforts, allowing profit growth to outpace revenue growth. The Q1 results therefore highlight not only seasonal factors but also the early effectiveness of SABECO’s pricing strategy and its shift towards higher-quality growth.

Solid foundation for 2026 targets

The positive Q1 results come as SABECO continues to transition from volume-driven expansion to a strategy centred on efficiency and value creation.

SABECO CEO Lester Tan presents the company’s 2026 business plan at its Annual General Meeting of Shareholders.

At its Annual General Meeting of Shareholders held last week, CEO Lester Tan outlined plans to strengthen capabilities across commercial operations, production and digital transformation. The company has set a 2026 target of VNĐ28.959 trillion in net revenue and VNĐ4.937 trillion in after-tax profit.

“Our focus in the coming year is on cost management to ensure profitability, while enhancing competitiveness through our distribution, sales systems and digital platforms,” Tan said. “With effective execution, SABECO can reinforce its leading position, sustain growth and deliver long-term value to shareholders, customers and the community.”

Compared to these targets, SABECO’s Q1 performance represents approximately 22.3 per cent of its annual revenue goal and 25.2 per cent of its profit target, indicating the company is broadly on track, with profit slightly ahead of plan.

This performance is particularly encouraging as SABECO prioritises protecting profit margins, improving its profit structure and enhancing product portfolio value. The company is accelerating premiumisation efforts while continuing to invest in product innovation and consumer experience, suggesting that recent pricing improvements are part of a broader long-term strategy rather than a one-off factor.

Building on its strong start to the year, SABECO is well positioned to sustain growth momentum in the coming quarters through disciplined execution, operational efficiency improvements and initiatives aligned with evolving consumer trends.

With these foundations, the company aims to further consolidate its market position and steadily realise its goal of quality-driven growth, creating sustainable long-term value for shareholders, customers and the wider community in 2026. — VNS