The Business Highlights of SCIC’s 2025 Annual General Meeting

Pressure as a Driving Force

Traphaco’s shareholders have approved a revenue plan 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, these figures are set with a somewhat conservative approach, considering the challenges of today’s 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, evaluates that the current context requires special efforts, especially since Traphaco sets a 60% growth target for the Premium traditional medicine product group through market expansion and a well-organized brand campaign; aiming for nearly 50% growth for the high-quality modern medicine group by expanding the portfolio of bioequivalent 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 exploring 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 strategic bidding strategy.

Traphaco’s Board of Directors

The Sabeco shareholder meeting, a business with a 36% contribution from SCIC, also demonstrated a “surmounting challenges” spirit with a revenue plan of VND 44,819.1 billion and expected after-tax profit of VND 4,835 billion, a 9% increase compared to the same period, and an increase of 9% and 8% compared to the performance in 2024. It’s challenging because the beer consumer market has faced many challenges in the last three years due to changes in taxes and regulations regarding alcohol levels for drivers, as well as tighter spending due to economic difficulties.

In fact, from 2018 to 2024, SABECO maintained its expansion in both revenue and profit but was halted 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.

Traphaco’s 2025 Annual General Meeting of Shareholders

With positive business results in 2024, Sabeco’s AGM agreed to increase the 2024 dividend from 35% to 50% and maintain a 50% dividend for 2025.

Mr. Lester Tan, General Director of SABECO, even hopes that “SABECO achieves its set plans, and once they are achieved, the company will have the opportunity to increase the dividend rate even more attractively for shareholders in 2025.”

Interestingly, while consistently maintaining an attractive cash dividend policy for many years, the enterprises still possess ample cash funds. For example, as of December 31, 2024, SABECO had a cash fund of up to VND 21,043.74 billion, accounting for more than 62.9% of total assets.

Surmounting Challenges with a Long-Term Vision

As one of the leading enterprises in the pharmaceutical, beer, and beverage markets, what drives Traphaco and Sabeco to continuously innovate?

Mr. Chung Ji Kwang, Chairman of Traphaco, shared, “We want Traphaco to become the leading pharmaceutical company in Vietnam in terms of revenue, profit, and value.”

Currently dominating the traditional medicine market, Traphaco’s strong diversification into the high-quality modern medicine market demands a long-term vision from major shareholders, including SCIC, in restructuring and long-term investment decisions, especially in the FMCG and specialty medicine fields.

Traphaco is aggressively executing the technology transfer of 70 products with the Deawoong Group (South Korea). Additionally, the company has established the EU-GMP Project Board and prepared financial resources to invest in a new factory.

Traphaco perceives the goal of investing in and obtaining the GMP-EU certification in the future as a must-do strategy. Joining this “arena” will not only enhance the company’s reputation in the domestic market but also open up export opportunities to developed countries with stringent product quality requirements.

Mr. Lester Tan, General Director of SABECO

SABECO, on the other hand, seeks potential opportunities for mergers and acquisitions to boost revenue and profit, emphasizing speed. This approach aims to optimize production capacity and market reach while improving profit margins and diversifying product lines.

Specifically, the company purchased 2,016,800 shares of Saigon Beer – Western in November 2024, increasing its ownership to 84.46% of charter capital, and bought 37,814,900 shares of Saigon Beer – Binh Tay Group Joint Stock Company to increase its ownership from 21.8% to 65% of charter capital.

According to Sabeco’s management, the acquisition of Sabibeco brings three significant benefits: First, it enables Sabeco to increase its beer can production capacity as Sabibeco owns six strategically located factories with large-scale production capabilities. Second, the transition from an associate company to a subsidiary improves Sabeco’s profit margins. Lastly, Sabibeco owns popular affordable brands like Sagota, diversifying Sabeco’s product portfolio.

As a major shareholder with an efficiency-oriented mindset, SCIC has accompanied Sabeco in its new orientations. Furthermore, the Corporation has shared the company’s proposals with management agencies regarding a reasonable roadmap for increasing the special consumption tax to balance state budget goals and ensure the long-term sustainable development of the industry. This consideration is especially relevant in the context of external shocks, such as tariffs.

With economic fluctuations at home and abroad, Vietnam’s domestic consumer market is becoming increasingly competitive yet full of potential. This presents a significant opportunity for enterprises with SCIC’s contribution, a strong track record, quality products, and reputable brands like Traphaco and Sabeco. Innovating, emphasizing quality, and maintaining strong company and product brand identities will be the key to enhancing business performance and, consequently, increasing benefits for shareholders, including SCIC.