SAB – Modest Q4 earnings growth, in line with expectations – Earnings Flash
  • 2025-02-03T00:00:00
  • Company Research

* 2024 results: SAB announced its 2024 results with net revenue of VND31.9tn (USD1.3bn; +5% YoY) and NPAT-MI of VND4.3tn (USD173.2mn; +5% YoY). The results both complete 98% of our full-year forecasts and are in line with our expectations.

* Q4 2024 results:

- Net revenue increased 5% YoY to VND8.9tn (USD357.3mn) in Q4 2024, driven by beer revenue rising 5% YoY. We mainly attribute this to higher beer sales volume YoY ahead of the Lunar New Year holiday, which occurred in late January 2025. Advertising & promotional (A&P) expenses/beer revenue increased 0.8 ppts YoY to 13.0% in Q4 2024 to carry out more campaigns ahead of the Lunar New Year, leading EBIT to decrease 7% YoY. However, 296% YoY higher net profit from associates lifted NPAT-MI growth to 2% YoY. Per SAB, the higher net profit from associates was driven by profit recovery from Crown Beverage Cans Saigon Limited (SAB’s 30%-stake associate producing and supplying aluminum cans for SAB and other alcohol and soft drink companies) on a full-year basis as agreed with the joint venture partner in Q4 2024. We note that Crown Saigon has shifted from a production model to a trading model due to factory relocation (caused by the expiration of its factory’s land use rights), resulting in low profit contributed to SAB in 9M 2024.

- Beer GPM slightly contracted by 0.6 ppts to 33.3% in Q4 2024, which was mainly due to SAB continuing to realize high-cost raw materials. Additionally, the blended EBIT margin contracted by 1.2 ppts to 9.4%, driven by A&P expenses/beer revenue increasing by 0.8 ppts YoY in Q4 2024.

SAB’s Q4 2024 and 2024 results

VND bn

Q4 2024

YoY

2024

YoY

2024/

Vietcap's 2024F

Net revenue

8,933

5%

31,872

5%

98%

 Beer revenue

7,704

5%

28,083

4%

98%

 Others

1,229

4%

3,790

7%

97%

Gross profit

2,499

2%

9,318

2%

97%

 Beer GP

2,564

3%

9,409

3%

98%

 Other GP & sales deduction 

-64

121%

-91

19%

119%

Selling expenses

-1,429

7%

-4,042

-10%

102%

G&A expenses 

-230

7%

-839

5%

99%

EBIT

840

-7%

4,437

16%

93%

Net financial income

273

-18%

1,042

-23%

104%

Gain/loss from associates

130

296%

197

-15%

224%

Net other income

-4

-78%

-30

-8%

86%

PBT

1,239

-1%

5,647

5%

97%

NPAT-MI

965

2%

4,330

5%

98%

GPM

28.0%

-0.8 ppts

29.2%

-0.6 ppts

 

Beer GPM

33.3%

-0.6 ppts

33.5%

-0.5 ppts

 

EBIT margin

9.4%

-1.2 ppts

13.9%

1.4 ppts

 

EBIT/beer revenue 

10.9%

-1.4 ppts

15.8%

1.6 ppts

 

NPAT-MI margin

10.8%

-0.3 ppts

13.6%

0.1 ppts

 

A&P spending/Beer revenue

13.0%

0.8 ppts

8.9%

-1.5 ppts

 

Source: SAB, Vietcap

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