Affected by the tightening of alcohol concentration, the beer industry giant still spends more than 2,500 billion VND to pay dividends

(NLDO) - With nearly 1.3 billion shares in circulation, Sabeco is expected to pay about VND2,565 billion in dividends this time.

On December 27, Saigon Beer - Alcohol - Beverage Corporation (Sabeco, stock code: SAB) closed the list of shareholders to pay cash dividends in 2024 at a rate of 20%, meaning that shareholders holding 1 share will receive 2,000 VND.

With nearly 1.3 billion shares in circulation, Sabeco plans to pay about VND2,565 billion in dividends this time. The expected payment date is January 23, 2025 (before Lunar New Year).

Currently, Vietnam Beverage Company Limited of the Thai billionaire is the largest shareholder of Sabeco, holding more than 687 million shares (nearly 54% of capital), expected to receive more than 1,370 billion VND.

Ranked second is the State Capital Investment Corporation (SCIC), which holds more than 461 million shares (36% of capital) of Sabeco, expected to receive nearly VND940 billion.

According to the plan approved at the 2024 annual general meeting of shareholders earlier this year, Sabeco approved a 2024 dividend of 35%, equivalent to VND3,500/share.

Thus, after this interim payment, Sabeco will make one more final dividend payment at a rate of 15% to complete the plan.

Sabeco Brewery

On the same day, Sabeco reported that it had successfully purchased 37.8 million SBB shares (43.2% of capital) from Saigon - Binh Tay Beer Group Joint Stock Company (Sabibeco). The total transaction value was estimated at nearly VND832 billion. After the transaction, Sabeco increased its ownership in Sabibeco from 16.4% to 59.6% of capital and became the parent company.

In addition, Sabeco's related unit, Binh Tay Liquor Joint Stock Company, also holds more than 5.5 million SBB shares, equivalent to 6.3% of capital. Thus, the Sabeco shareholder group owns a total of 65.9% of Sabibeco's capital.

Saigon Binh Tay Beer was established in November 2005. This group has 6 breweries and the non-alcoholic beer brand Sagota. Beer production capacity is 600 million liters per year.

According to analysis by Agribank Securities Joint Stock Company (Agriseco), after completing the M&A of Sabibeco, Sabeco's total capacity will be increased to 3 billion liters of beer/year within the year, an increase of 25% compared to the current capacity and become the beer company with the largest production scale in Vietnam.

However, Sabeco is also at risk as beer products are currently subject to a special consumption tax of 65% and are expected to continue to increase.

In the context of the beer industry being affected by Decree 100 on restricting alcohol consumption, increasing taxes and retail prices will likely increase competition in each segment. Sabeco is leading the trend of reducing operating costs within the allowable range to maintain optimal profits, while competitors have to accept gradually leaving the market.

Regarding business performance, in the first 9 months of 2024, Sabeco recorded VND 22,940 billion in net revenue, and after-tax profit attributable to parent company shareholders reached VND 3,565 billion, corresponding to increases of 4.6% and 12.4% respectively over the same period last year.

On the stock market, SAB shares are at VND55,800/share, up slightly by nearly 0.2% compared to the previous session. Compared to the beginning of 2024, this stock has decreased by nearly 3%.

Source: https://nld.com.vn/anh-huong-viec-siet-nong-do-con-ong-lon-nganh-bia-van-chi-hon-2500-ti-dong-tra-co-tuc-196241228081139974.htm