Saigon Cu Chi Beer Factory
Entering the potential exploitation phase After completing phase I (from 2018 to 2022), when converting from a state-owned enterprise to a private enterprise, SABECO has been focusing on implementing many initiatives in medium and long-term strategies to exploit the enterprise's potential when entering a new era of growth. First, SABECO is increasing overall production and sustainability of the production system, including merger projects implemented in 2023 for Saigon - Western Beer Joint Stock Company, Saigon Packaging Group Joint Stock Company... In addition, SABECO is expected to complete the increase of ownership ratio from 22.7% to 65.9% of charter capital at Saigon - Binh Tay Beer Group Joint Stock Company (Sabibeco) in January 2025. After the merger, SABECO expects to improve its gross profit margin by enjoying all the profits from the beer output previously purchased from Sabibeco, and at the same time, being able to exploit Sabibeco's excess capacity. Second, SABECO will optimize processes, shorten procedures and improve efficiency in the way it works through the application of digital solutions. Third, SABECO will increase its stock value by enhancing its image, position and value on the stock market. In particular, in 2023, SABECO will award shares at a ratio of 1:1 with the aim of maximizing shareholder value and improving the overall liquidity of the shares. Fourth, in the real estate sector, SABECO is actively cooperating with subsidiaries, joint ventures and associates to seek opportunities to create different sources of income in the coming years. In 2024, SABECO plans to focus its business resources on brand building and market development activities, including building brand, product and distribution strategies, and consumption in line with consumer trends, while structuring the distribution system in a professional manner, increasing efficiency and supporting control by channel and product segment. At the same time, maintain the domestic market, reach out to the international market; promote research and development to improve product quality and launch new product lines; improve the efficiency of the supply chain throughout the SABECO system; focus on reform to increase investment efficiency, reduce operating costs, and increase productivity; focus on developing modern trade channels, online sales channels, as well as take-away and on-site consumption according to global trends. In fact, at the 2024 General Meeting of Shareholders, Mr. Koh Poh Tiong, Chairman of SABECO, emphasized that SABECO is entering a period of rapid growth: "I myself am confident with the new target (revenue, market share in 2024). I also told the General Director that there is no need to slow down, just rock & roll". It can be seen that, despite operating in a challenging business environment, after more than 7 years of taking over, SABECO is expected to enter a period of strong growth thanks to taking advantage of many new potential areas, as well as restructuring and successfully transforming from a state-owned enterprise to a private enterprise.
Saigon Beer product packaging line
Expanding market share In fact, thanks to restructuring efforts, "unlocking" many potentials that state-owned enterprises could not exploit and operate effectively before, SABECO has continued to show a positive picture. In particular, in the third quarter of 2024 alone, SABECO recorded revenue of VND 7,670.11 billion, up 3.4% over the same period and profit after tax increased by 8.1%, to VND 1,161.36 billion. Accumulated in the first 9 months of 2024, SABECO recorded revenue of VND 22,939.9 billion, up 4.6% over the same period; profit after tax reached VND 3,504 billion, up 6.6% over the same period last year. SABECO's growth momentum is being maintained in the context of the strict implementation of Decree 100/2019/ND-CP and increasingly fierce competition among businesses in the industry, many beer businesses are still facing difficulties and declining. With the efforts and foundation built in 7 years since the conversion of the business type, SABECO has created an effective working environment and improved labor productivity. Notably, during the meeting with analysts on the business situation in the third quarter and the first 9 months of 2024, SABECO's leaders said that the Company gained market share in the first 9 months of 2024, mainly thanks to rural areas, with the number of distribution points and revenue per distribution point both increasing sharply. In addition, SABECO has recorded some positive initial signals when launching the 333 Pilsner product line, including completing the internal distribution target, receiving some re-orders from distributors and gaining wide acceptance in the market. With the results achieved in the first 9 months of 2024, SABECO's leadership continues to be optimistic about beer sales in the fourth quarter of 2024 and the first quarter of 2025, especially before the Lunar New Year in late January 2025. Source: https://baodautu.vn/sabeco-tung-buoc-mo-rong-thi-phan-nho-khai-thac-hieu-qua-nhieu-tiem-nang-d230078.html
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