According to Sabeco, the beer market in 2024 will continue to be challenging due to the severe impact of the Covid-19 pandemic, as well as the influence of relevant policy mechanisms such as the Law on Prevention and Control of Alcohol and Beer Harm. and Decree 100/2019/ND-CP, making the results of businesses fall short of expectations.
Furthermore, the tightening of consumer spending, along with increasingly stringent consumer preferences and packaging designs and quality demands, is putting pressure on businesses, requiring them to invest heavily in advertising and promotion campaigns to increase competitiveness and drive consumption.
According to Sabeco, Decree 100 is expected to continue to be a major barrier to the recovery of the beer industry this year, not to mention factors such as production, packaging, raw materials, and transportation costs, which remain high, fluctuate abnormally and are expected to continue to increase sharply, impacting the profits of businesses in the industry.
While the aforementioned laws and policies continue to have significant consequences on the beer industry, the proposal by the Ministry of Finance to adjust the excise tax rate for certain products that are hazardous to health, including wine and beer, in the latest draft of the Law on Excise Tax, will continue to put pressure on businesses in the industry.
The Vietnam Beer – Alcohol – Beverage Association (VBA) believes that raising taxes will increase the financial burden on businesses. Therefore, it is necessary for businesses to have enough time to prepare and plan production and business activities, and it is important not to rush, shorten or skip the necessary requirements and procedures when amending a law as important as this.
Despite the challenges, Sabeco believes that 2024 will continue to present ‘golden’ opportunities for the Vietnamese beer industry for three reasons.
Firstly, the golden population structure and rapid income growth. Secondly, the great potential of the ‘non-alcoholic beer’ segment. And thirdly, the potential of the export market.
Previously, in 2023, Sabeco recorded a net revenue of VND 30,461 billion, a decrease of 13% compared to the previous year and down to a level lower than 2016.
Sabeco’s profits were also not very positive. Although it still maintained a level above VND 4,000 billion, this figure was still lower than in 2016 and decreased by 23% compared to 2022.
On April 25th, Sabeco will hold its Annual General Meeting of Shareholders 2024. At the meeting, Sabeco will present to shareholders a plan to increase revenue by 12.9% to VND 34,397 billion and profit by 7.6% to VND 4,580 billion.
