Efficiency and cost discipline central to SABECO's fortunes

Saigon Beer-Alcohol-Beverage Corporation has outlined a steady growth outlook and reaffirmed its shareholder return policy, even as underlying disclosures suggest a more complex operating environment.

- By Nha Phuong

At its AGM on April 23, Saigon Beer-Alcohol-Beverage Corporation (SABECO) set a 2026 revenue target of almost VND29 trillion ($1.16 billion) and post-tax profit of VND4.94 trillion ($197.5 million), representing increases of 12 per cent and 8 per cent, respectively, compared to the previous year.

The targets follow a year in which reported performance showed a divergence between revenue and profitability. In 2025, SABECO recorded revenue of VND25.89 trillion ($1 billion), down 19 per cent on-year, while post-tax profit edged up around 2 per cent to VND4.57 trillion ($183 million), equivalent to approximately 82 per cent of its revenue target and 94 per cent of its profit plan.

The variation between the two indicators coincided with changes in consumption patterns, where growth has been influenced more by product mix and channels than by volume. Across the sector, this has corresponded with adjustments in commercial strategies and operating priorities, as producers respond to shifting consumer behaviour and competitive dynamics.

First-quarter 2026 results were described as encouraging, with post-tax profit rising on-year. However, management noted that the increase partly reflected a lower comparison base.

"The first quarter was positive, but this was also supported by a relatively low base," CEO Lester Tan Teck Chuan told shareholders, adding that the full-year outcome would depend on external developments.

The company indicated that achieving its 2026 targets may remain subject to a range of external factors, including geopolitical developments and raw material price movements.

"Rising input costs will have an impact in the coming quarters, even if this has not yet been fully reflected," Tan said.