Beer and alcohol company's revenue increases, owner of Wonderfarm winter melon tea company reports sharp drop in profits

Revenue at beer and alcohol businesses such as Hanoi Vodka and Saigon Tay Do Beer increased in the last quarter of 2024. Meanwhile, the owner of the winter melon tea company Wonderfarm reported a sharp drop in profits in the fourth quarter.

The alcohol industry continues to be affected by Decree 100 on tightening alcohol concentration, but it has become somewhat less severe - Photo: QUANG DINH

Many beverage companies have announced their financial reports for the fourth quarter of 2024. Usually, in the last quarter of the year, companies in this industry have "exciting" revenue because it is near Tet and consumer demand is higher.

How does the beer and wine business work?

At Hanoi Alcohol and Beverage Joint Stock Company (Halico) - owner of Hanoi Vodka brand, revenue in the fourth quarter reached 35.1 billion VND, up nearly 9% over the same period.

Cost of goods sold decreased, the positive point is that the company had a gross profit of more than 14 billion VND, nearly double compared to the same period last year. After deducting expenses, Halico's net profit was negative 949 million VND, significantly lower than the loss of 6.4 billion VND in the fourth quarter of 2023.

For the whole year of 2024, Halico recorded revenue of more than 121 billion VND, an increase of 12% compared to the previous year. Net loss also decreased to 8.4 billion VND, while the previous year it lost nearly 10 billion VND.

Halico's losses are still in the plan determined by the company itself at the beginning of the year. In addition, 2024 is also the year of the lowest loss for the Hanoi Vodka store owner in the past 9 years.

Another beverage company that has also announced its financial report for the fourth quarter of 2024 is Saigon Tay Do Beer - Beverage Joint Stock Company (STD).

According to the report, STD's revenue in the last quarter of the year was quite positive, reaching VND204 billion, up 20% over the same period. This result brought the total revenue for the whole year to VND632 billion, up 4% compared to 2023.

In the fourth quarter, STD significantly saved on sales costs and interest expenses, resulting in net profit of nearly VND 3.2 billion, an increase of 72% over the same period in 2023.

However, for the whole year of 2024, the after-tax profit of this beer company was only nearly 4.6 billion VND, down nearly 62%.

The main reason is the increase in cost of goods sold and trade discounts. In addition, some other costs also increased, causing this beer and alcohol company to increase sales but not "recover" profits.

Wonderfarm winter melon tea revenue increased but profit decreased sharply

At Interfood Joint Stock Company, the financial report for the fourth quarter of 2024 recorded net revenue of nearly VND 537 billion, only slightly up compared to the same period last year.

In terms of revenue structure, the beverage segment contributed nearly 83% but remained flat compared to the same period. Notably, the cost of goods sold in the fourth quarter increased more sharply and accounted for 373 billion VND, so Interfood's gross profit decreased by nearly 15%, to 162 billion VND. Profit after tax was more than 25 billion VND, down 42% compared to the fourth quarter of 2023.

Mr. Daisuke Hattori - General Director of Interfood - said that net revenue increased lower than the same period due to the impact of natural disasters in the third quarter of 2024 in the North. Meanwhile, the cost of goods sold increased due to an increase in some fresh input materials and processing fees.

"The company continues to implement promotional programs and communication campaigns focusing mainly on key strategic product lines to boost sales growth during the period," said Interfood leaders.

Although the fourth quarter was not very positive, in 2024, the owner of the Wonderfarm winter melon tea brand still recorded the highest revenue since its establishment - reaching 2,111 billion VND, an increase of more than 5% compared to 2023.

However, after-tax profit only reached 172 billion VND, down 17% compared to last year and did not meet the set target.

Previously, Interfood had a long period of losses after the melamine incident. In 2008, the company suffered a record loss of more than 220 billion VND, and from 2011 to 2015, its after-tax profit was negative every year. It was not until 2022 that the company was able to erase its persistent accumulated losses.

Source: https://tuoitre.vn/doanh-thu-cong-ty-bia-ruou-tang-chu-hang-tra-bi-dao-wonderfarm-bao-lai-giam-sau-20250118175406902.htm