Profits recovered strongly in Q2, Sabeco still worried about COVID-19
VietReader 29-07-2020, 23:45

Sabeco said the company’s business situation has begun to regain its growth momentum compared to the first quarter of 2020 in the context of the market is recovering after the COVID-19 pandemic. However, the unpredictable evolution of the COVID-19 pandemic could lead to a slower recovery process.

In the first 6 months of this year, revenue and profit of Sabeco decreased over 30% over the same period, respectively VND 12,044 billion and VND 1,933 billion. (Photo: Sabeco)

Vietnam Beer – Alcohol – Beverage Corporation (Sabeco, Code: SAB) has just announced its business results for quarter II / 2020. In which, net revenue is over 7,135 billion Dong, down by 21% YoY.

Besides, cost of goods sold also recorded a decrease of 26% to VND 4,928 billion. The company’s gross profit is over 2,207 billion dong, down by 9% YoY.

During the period, Sabeco earned nearly 227 billion dong from financial activities, up 14%. At the same time, the company earned nearly 58 billion dong profit from the joint venture company, lower than the figure of 91 billion dong in the same period.

As selling expenses and corporate expenses increased by 23% and 15% respectively, VND 795 billion and VND 212 billion, respectively, resulted in Sabeco’s net profit to decrease by 21% over the same period, reaching VND 1,216 billion.

Even so, both revenue and profit achieved in the second quarter of this year are still much higher than the figure of less than VND 5,000 billion in revenue and VND 700 billion in profit in the first quarter of this year due to the impact of Decree 100 and the COVID-19 epidemic has directly affected sales and beer consumption.

In the first 6 months, Sabeco’s revenue and profit dropped by over 30% YoY, reaching 12,044 billion dong and 1,933 billion dong respectively. Accordingly, the company has fulfilled 51% of the revenue plan and 59% of the year profit plan.

Not yet happy to worry

Although the business results in the first 6 months are still lower than the same period, this is not a surprise because Sabeco leaders had planned before.

Besides the business results in the first 6 months, Sabeco also added that the business situation of the company has started to regain its growth momentum in the context of the market recovering after the COVID-19 pandemic.

But as of the present time, the COVID-19 epidemic once has new developments. Therefore, whether Sabeco’s recovery momentum will progress or slow down, whether or not to complete its business plan in the remaining half of the race is still to be concluded.

“We hope the second wave of the COVID-19 epidemic will not spread to Vietnam. By the end of the year, tourism recovery, meetings and conferences will be more likely to expect good things on the two the last quarter of the year “. This is a share of General Director Neo Gim Siong Bennett at the Annual General Meeting of Shareholders taking place at the end of June.

As of June 30, 2020, Sabeco’s total assets exceeded VND 26,159 billion, a slight decrease of 3% compared to the beginning of the year. In particular, highly liquid assets including cash and cash equivalents, short-term financial investments accounted for more than VND 16,000 billion, equivalent to more than 61% of the total value of assets.

Sabeco’s liabilities have also decreased by 7% compared to the beginning of the year to VND 6,418 billion, mainly reducing short-term accounts payable to sellers. Particularly, taxes and other payables to the State increased significantly from VND 856 billion to over VND 1,129 billion.