- 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 |
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EBIT/beer revenue | 10.9% | -1.4 ppts | 15.8% | 1.6 ppts |
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NPAT-MI margin | 10.8% | -0.3 ppts | 13.6% | 0.1 ppts |
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A&P spending/Beer revenue | 13.0% | 0.8 ppts | 8.9% | -1.5 ppts |
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Source: SAB, Vietcap
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