TDBECO Faces Challenges in Q1 2024: Revenue Drops, Profits Plunge
In the first quarter of 2024, TDBECO reported a revenue of nearly VND 68 billion, marking an 18% decrease compared to the same period last year. After deducting cost of goods sold and expenses, net income reached only VND 350 million, a 93% decline. Gross profit margin dropped to 7%, significantly below the 13% recorded in the corresponding period of 2023.
The company attributed the sharp decline in profitability to a 20% decrease in beer production and an 18% reduction in sales volume, coupled with rising costs of raw materials, despite cost-cutting measures in production, labor, and administration.
For 2024, TDBECO has set modest targets, aiming for a net revenue of VND 305 billion and a net profit of only VND 2 billion, representing a 4% and 83% decrease respectively compared to 2023. These projections are based on forecasts of reduced consumer spending and stricter regulations on alcohol concentration. If realized, these figures would mark the lowest profit in the company’s history. As of the end of Q1, the company had achieved 22% of its revenue target and 18% of its profit goal for the year.
On the balance sheet as of March 31, 2024, TDBECO’s total assets amounted to nearly VND 354 billion, a decrease of VND 47 billion compared to the beginning of the year. Cash and cash equivalents stood at close to VND 180 billion, including a new time deposit of over VND 26 billion with a maturity of over one year. On the other side of the balance sheet, total liabilities reached over VND 83 billion, a reduction of VND 48 billion from the start of the year. Short-term borrowings and lease liabilities amounted to approximately VND 47 billion.
Change in Board of Directors
|
During the company’s Annual General Meeting of Shareholders (AGM) held on April 20, 2024, TDBECO approved the removal of Mr. Nguyen Huy Thang from the Board of Directors for the 2022-2027 term but did not approve the removal of Ms. Tran Le Hoa. Mr. Phan Thanh Hai was elected to the Board of Directors to fill the vacancy for the remaining period of the 2022-2027 term.
Following the AGM, the Board of Directors of TDBECO met and decided to remove Ms. Tran Le Hoa from her position as Chairwoman of the Board and appoint Mr. Phan Thanh Hai as her replacement, effective April 20, 2024.
Mr. Phan Thanh Hai, born in 1982, holds a bachelor’s degree in textile engineering and a master’s degree in business administration. He joined Saigon Beer-Alcohol-Beverage Corporation (Sabeco, HOSE: SAB) in June 2016 and currently serves as Deputy Director of Planning (Head of Department) for Sabeco. At TDBECO, Mr. Hai will represent Sabeco, which owns close to 2.9 million shares, equivalent to 14.41% of the company’s capital.
According to the 2023 annual report, Sabeco holds 21.8% of TDBECO’s charter capital and has 22.18% of voting rights.
Strengths
