SABECO will further step up the transformation journey and accelerate its growth and development this year. — Photo courtesy of the firm

HCM CITY — Saigon Beer-Alcohol-Beverage Corporation (SABECO) has set a revenue target of VNĐ34.8 trillion (US$1.67 billion), and after-tax profit of VNĐ4.58 trillion ($199 million) in 2022, a 32 per cent and 17 per cent year-on-year increase, respectively.

This information was released at its Annual General Meeting of Shareholders (AGM) held in HCM City on Wednesday.

SABECO said that in the 2nd phase of transformation starting 2022, the corporation will accelerate its growth and development. In addition to this, the corporation will continue to further contribute as a proud, prominent, and responsible corporate citizen to support its ambition to bring out the best of Việt Nam.

2021 wrapped up SABECO’s first three years of transformation. The corporation has strengthened its competitiveness by implementing transformative initiatives across seven key pillars, including Sales, Brand, Production, Supply Chain, Cost, People and Board successfully. This set the springboard for SABECO to enter 2nd phase of its transformation with a positive outlook.

This includes SABECO 4.0, the company’s strategic initiative to transform its business using digital technologies. This officially started in 2020 to enable SABECO to improve its ways of working, through centralising and digitising its processes, initially in the areas of supply chain, warehousing, sales operation, and business intelligence system.

“SABECO has held up our business operation and brand performance despite the challenging year due to COVID-19. We strived to maintain the stability of our operation and focus to maximise both the domestic market as well as our export business opportunities as Việt Nam returns to a new normal,” said Bennett Neo, SABECO’s General Director.

Facing the challenges from the pandemic and strict policies relating to advertising, sale and consumption of beer and alcohol products, the corporation recorded a decrease of 5.6 per cent in net revenue to VNĐ26.3 trillion; after-tax profit was VNĐ3.9 trillion, down 20.4 per cent.

SABECO achieved success in transforming some of its key business processes, accelerating its marketing and sales initiatives, and improving its operational efficiencies across the supply chain and production. The cost-saving measures also contributed to the relatively good result.

“We have been secure through a very difficult 2021, while keeping our employees, partners and community taken care of. With the COVID-19 situation improving, barring further escalation in the Ukraine-Russia war, 2022 looks promising,” Neo added.

SABECO will focus on market expansion both domestically and internationally. In addition to this, SABECO will continue to build a stronger product portfolio in line with the trend of consumption, while continuing to restructure its distribution and route-to-market ecosystem.

Together with business development, SABECO will expand its sustainability efforts through tripartite partnerships with the government, private sector, and social organisations. SABECO continues to build upon its commitment to sustainable development focusing on 4Cs: Consumption, Conservation, Country, and Culture. The corporate will roll out initiatives with a sustainable development strategy.

“SABECO together with all our partners will work hand-in-hand with one common goal to expand our business with a core focus on topline growth and value creation for our consumers, customers and shareholders. Although the outlook for 2022 is gradually improving, it still has its challenges and uncertainties with the input cost increases. Nonetheless, we will remain vigilant and focus on our business performance, as well as our ambition to bring out the best of Việt Nam and promote our brands to the world,” he added.

The general director said within a week, SABECO's brewery in Quảng Ngãi Province will come into operation with a capacity of 250 million litres a year, enough to meet the needs of the Central and Southern markets.

The company paid dividends of 2021 in cash at the rate of 35 per cent with a total of VNĐ2.2 trillion. It planned to pay the same dividend in 2022.

Notably, SABECO has been approved by shareholders to add more power generation business lines, namely wind and solar power and other electricity. — VNS