Brewer Sabeco sees profits plummet

By Dat Nguyen   July 30, 2020 | 01:18 am PT
Brewer Sabeco sees profits plummet
Bottles of beer move along a production line at a factory of Sabeco in Hanoi. Photo by Reuters/Kham.
Vietnam’s largest brewer Sabeco saw its H1 post-tax profit fall 31 percent year-on-year to VND1.93 trillion ($83 million) over Covid-19 pandemic impacts.

Revenues fell 35 percent to VND12 trillion ($518 million), 89 percent of it from beer and the rest from wine and other beverages.

The company, owned by Thai beverage giant ThaiBev, said that the profit plunge came as Vietnam imposed social distancing measures and closed "non-essential" businesses to contain the novel coronavirus. Authorities ordered most businesses, including restaurants and bars, to close in March and April.

Vietnam’s new regulations on drunk driving have also impacted on its business, Sabeco said. The country’s new regime of fines - up to VND8 million ($345) for DUI motorbike drivers and VND40 million ($1,730) for car drivers have kept drinkers away from restaurants and bars.

Sabeco forecasts a post-tax profit fall of 37 percent this year to VND3.25 trillion ($140 million).

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