## Pressure is a Driving Force
The Traphaco Annual General Meeting of Shareholders approved the 2025 plan with a revenue of VND 2,559 billion (8% growth) and a profit of VND 268 billion (4.2% growth) for 2025. According to Mr. Chung Ji Kwang, Chairman of the Board of Directors of Traphaco, the plan is quite cautious, considering the challenges of the current market. However, Traphaco will boost sales, not only to achieve the set goals but also to exceed expectations.
The sweetness also comes to SCIC and Traphaco’s shareholders as the cash dividend ratio increases from 30% to 40% for 2024 and maintains a minimum of 30% for 2025.
Ms. Dao Thuy Ha, Member of the Board of Directors and Vice President of Traphaco, assessed that the current context requires special efforts, especially when Traphaco sets a 60% growth target for the Premium Oriental Medicine product group through market expansion and a well-organized brand campaign; nearly 50% growth for the High-Quality Western Medicine group by expanding the portfolio of biosimilar drugs, first generics, and promoting technology transfer products.
The nearly 60-year-old enterprise will expand its reach in major pharmacy chains and traditional distribution systems while exploiting the FMCG channel for Boganic Herbal Tea.
The company also invests deeply in the ETC channel (prescription drugs) with a highly professional sales force and a professional bidding strategy.
The Sabeco Annual General Meeting of Shareholders, a business with a 36% contribution from SCIC, also demonstrated the spirit of “overcoming all obstacles” with a revenue plan of VND 44,8191 billion and an expected after-tax profit of VND 4,835 billion, up 9% over the same period, up 9% and 8%, respectively, compared to the implementation in 2024. It is challenging because the beer consumer market in the past three years has faced many challenges from changes in taxes and regulations on alcohol levels when participating in traffic and tight spending psychology due to economic difficulties.
In fact, from 2018 to 2024, Sabeco maintained its expansion in both revenue and profit but was slowed down during the pandemic. The company has made efforts to turn things around and return to growth in 2024 with a 4.6% increase in revenue to VND 31,872 billion and a 5.6% increase in after-tax profit to VND 4,495 billion.
With positive business results in 2024, the Sabeco General Meeting of Shareholders agreed to increase the 2024 dividend from 35% to 50% and maintain a dividend of 50% in 2025.
Mr. Lester Tan, General Director of Sabeco, expects: “Hopefully, Sabeco will achieve the set plan, and when the plan is achieved, the Company will have the opportunity to increase the dividend rate even more attractive to shareholders in 2025.”
Interestingly, while maintaining an attractive cash dividend policy for many years, the enterprises still have abundant cash funds. For example, as of December 31, 2024, Sabeco has a cash fund of up to VND 21,043.74 billion, accounting for more than 62.9% of total assets.
## Rise Above with Long-Term Vision
What drives Traphaco and Sabeco, leading companies in the pharmaceutical, beer, and beverage markets, to continuously innovate?
Mr. Chung Ji Kwang, Chairman of Traphaco, said: “We want Traphaco to become the leading pharmaceutical company in Vietnam in terms of revenue, profit, and value.”
Being the king in the oriental medicine group, Traphaco’s strong diversification into the high-quality western medicine group requires a long-term vision from major shareholders, including SCIC, in restructuring and long-term investment decisions, especially in the FMCG and specialty medicine fields.
The roadmap for technology transfer of 70 products with Deawoong Group (Korea) is being implemented vigorously by Traphaco. In addition, the Company has established an EU-GMP Project Team and prepared financial resources to invest in a new factory.
Traphaco considers the goal of investing in and obtaining GMP-EU certification in the future as a must-do strategy and cannot be delayed. Joining this “arena” not only enhances the enterprise’s reputation in the domestic market but also opens up export opportunities to developed countries – where product quality requirements are stringent.
Acting differently but aiming for revenue and profit growth and emphasizing speed, Sabeco seeks potential opportunities for M&A if the project is feasible, brings long-term effectiveness, and is reasonably priced.
Specifically, the Company purchased 2,016,800 shares of Saigon Beer – Western Region Joint Stock Company in November 2024, increasing its ownership to 84.46% of charter capital; bought 37,814,900 shares of Saigon Beer – Binh Tay Joint Stock Company to increase ownership from 21.8% to 65% of charter capital.
Sabeco’s purchase of Sabibeco, according to the enterprise’s leaders, brings three significant benefits.
First, the company can increase its beer can output as Sabibeco owns a large production capacity. After the merger, most of it will optimize the output of cans to meet the Vietnamese market, where consumers prefer beer cans, and Sabibeco owns six strategically located factories with large can production capacity.
Second, the transition from an associated company to a subsidiary helps SABECO improve its profit margin. Finally, Sabibeco owns many popular brands such as Sagota, so it will help diversify SABECO’s product lines.
In its role as a major shareholder and with an efficient investment mindset, SCIC has accompanied Sabeco’s new orientations. Furthermore, the Corporation shared the enterprise’s proposals with management agencies regarding applying a reasonable roadmap for the increase in special consumption tax to meet the State budget’s goals and ensure the sustainable long-term development of the industry. At the same time, consider the context of external shocks such as tariffs.
With economic fluctuations at home and abroad, Vietnam’s domestic consumer market is becoming increasingly competitive but still has great potential. This is a great opportunity for enterprises with SCIC’s capital contribution, long history, quality products, and reputable brands such as Traphaco and Sabeco. Innovating, emphasizing the value of quality, maintaining the company’s and product brands’ strength will be the key to enhancing enterprises’ operational efficiency and increasing benefits for shareholders, including SCIC.
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