SABECO PIVOTS INTO THE 2ND PHASE OF TRANSFORMATION, ENHANCING ITS LONG -TERM BUSINESS VALUE THROUGH SUSTAINABILITY.
Ho Chi Minh City, 27 April 2022, Saigon Beer-Alcohol-Beverage Corporation (SABECO), during its Annual General Meeting of Shareholders (AGM), shared that in the 2nd phase of transformation starting 2022, the corporation will further step up in its transformation journey, and accelerating its growth and development. In addition to this, the corporation will continue to further contribute its effort as a proud, prominent, and responsible corporate citizen to support its ambition to bring out the best of Vietnam.
SABECO organized its 2022 Annual General Meeting of Shareholders
2021 wrapped up SABECO’s first 3 years of transformation. The corporation has strengthened its competitiveness by implementing transformative initiatives across 7 key pillars of organization: Sales, Brand, Production, Supply Chain, Cost, People and Board successfully. This set the springboard for SABECO to enter 2nd phase of its transformation with 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 centralizing and digitizing its processes, initially in the areas of supply chain, warehousing, sales operation, and business intelligence system.
“SABECO has held up strongly our business operation and brand performance despite the challenging year of 2021 due to COVID-19. We thrived to maintain the stability of our operation and focus to maximize both domestic market as well as our export business opportunities as Vietnam returns to a new normal”, said Mr. Bennett Neo.
Mr. 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% in net revenue to VND 26,373 billion; profit after tax was 3,929 billion dong, down 20.4%.
SABECO achieved success in transforming some of its key business processes, accelerating its marketing and sales initiatives, and improving its operation efficiencies across supply chain and production. The cost-saving measures also contributed to the relatively good result.
“We have steered through a very difficult 2021 profitably, while keeping our employees employed, partners and community taken care of. With COVID situation improving, barring further escalation in Ukraine-Russian war, 2022 looks promising”, added Mr. Bennett Neo.
2022 top-line priorities
According to Mr. Bennett Neo, in 2022, SABECO will enhance its competitiveness and profitability through the launch of Phase 2 of transformation, focusing 6 key pillars of Sales, Brand/Marketing, Production, Supply Chain, People and Unlock, supported by SABECO 4.0 and governance initiatives.
SABECO will also focus on market expansion both domestically and internationally. In addition to this, SABECO will continue to build stronger product portfolio in line with the trend of consumption, while continue to re-structure 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 organizations. SABECO continues to build up on its commitment on sustainable development focusing on 4Cs: Consumption, Conservation, Country, and Culture. The corporate will roll out initiatives with our sustainable development strategy.
SABECO has set a target revenue of VND 34,791 billion, and profit after tax at 4,581 billion in 2022, a 32% and 17% year-on-year increase, respectively.
“SABECO together with all our partners will work hand-in-hand with one common goal to expand our business with core focus on topline growth and value creation for our consumer, customers and shareholders. Although the outlook for 2022 is gradually improving, it still has its challenges and uncertainties with the growing of input cost increases. Nonetheless, we will remain vigilant and focus on our business performance, as well as our ambition to thrive on bringing out the best of Vietnam and promoting our brands to the world”, remarked Neo.
With 147 years of brewing history, Saigon Beer – Alcohol – Beverage Corporation (“SABECO”) has established itself as one of Vietnam’s leading companies.
SABECO includes 26 breweries and 11 trading subsidiaries and has a distribution network consisting of hundred thousand retailers nationwide. SABECO is proud to offer a brand portfolio that consists of some of the most well-loved beer brands in Vietnam, including Bia Lac Viet, Bia Saigon Chill, Bia 333, Bia Saigon Special, Bia Saigon Export, Bia Saigon Lager and Bia Saigon Gold.
Our flagship brands Bia Saigon and Bia 333 have been consistently recognized for its outstanding quality by prestigious local and international organizations, such as “National Brand” of Vietnam for several years. Most recently, it has received a gold medal at the International Brewing Awards 2019 (IBAs), the Gold, Silver and Bronze Prize at the International Beer Cup 2019 (IBC) and Gold, Silver Medal at Australia International Brewing Award 2020 (AIBA), Gold and Silver Medal at Monde Selection Award 2021.
With a commitment to investing in business development along with sustainable development, SABECO is always striving to create positive changes to enhance the position of the Vietnamese brand, while promoting positive development for the community and Vietnam. Accordingly, our sustainable development strategy focuses on four pillars: Consumption, Conservation, Country, and Culture.
For more information on SABECO, please visit: www.sabeco.com.vn
Press information, please contact:
Saigon Beer-Alcohol-Beverage Corporation (SABECO)
Dinh Nguyen Thi Huong, Head of Corporate Communication – firstname.lastname@example.org