Habeco chairman blames low profit target on Covid-19

The brewery targets post-tax profits of VND255 billion ($11 million), down 64 percent from last year.

Its chairman Tran Dinh Thanh said a fresh outbreak of Covid-19 in January means tourism companies, hotels and restaurants continue to languish, directly causing a decrease in the sales of alcoholic beverages.

The company's revenues in the first quarter of this year were down 39.6 percent from the previous quarter to VND1.1 trillion ($48.5 million).

Rising competition with many brewers introducing new products in the mid-priced market segment in which Habeco mainly operates is also a reason for falling sales, he said.

"If the pandemic is contained this year, the company will definitely surpass the profit target."

It is striving to maintain its position as one of the biggest brewers in the northern and central regions, and working to expand its business in the south, he added.

Last year, beer consumption fell 22.6 percent because of Covid-19 impacts as well as the impact of a law increasing fines for driving under the influence.