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Sai Gon – Mien Trung Beer (SMB) plans to reduce profits by nearly 60% 

 Friday, June 2,2023

AsemconnectVietnam - Saigon - Mien Trung Beer Joint Stock Company (stock code SMB) has just decided to approve the production and business plan and investment in 2023 with a total investment of more than VND89 billion.

On May 30, Saigon - Mien Trung Beer Joint Stock Company said that in 2023 the company aims to achieve more than 200 million liters of output, total sales revenue of VND1,485.13 billion. Profit before tax reached VND90 billion, payment to the state budget reached VND1,337.76 billion.
Total investment is VND89.48 billion, of which disbursement this year is VND88.05 billion. The company plans to borrow VND117.17 billion of working capital (Dak Lak is VND84.7 billion, Quy Nhon is VND25.97 billion, Phu Yen is VND6.5 billion).
The company's business situation in the first months of this year is recording a decline in both revenue and profit.
At the end of the first quarter of 2023, the Company achieved a revenue of VND253 billion, down 10% compared to the same period last year. Profit after tax reached VND15.1 billion, down 58.5% over the same period last year.
Explaining the cause of the decrease in profit, the Company said that its profit after corporate income tax in the first quarter of 2023 decreased sharply compared to the same period last year, corresponding to a decrease of VND21.35 billion, mainly due to a decrease in output in the first quarter of 2023 by 4.4 million liters. In addition to the company's good management of raw material norms, the cost of materials still increased compared to the same period last year.
By the end of March 31, 2023, the Company had total assets of VND874 billion, down more than 10.6% compared to the figure at the beginning of the year. Liabilities are VND282 billion (accounting for more than 32% of total assets and down 23% compared to the beginning of the year), equity is VND591 billion.
In 2023, the company identified many difficulties. The production of Saigon beer assigned to the company is decreasing every year. Decree No. 100/ND-CP continues to affect beer and alcohol consumption. The weather situation is becoming more and more complicated, somewhat extreme, the phenomenon of drought, storm, flood, salt marsh... will affect people's life and consumption. Besides, the protracted Russia-Ukraine conflict disrupts the supply chain, energy prices, and transportation will certainly make manufacturing enterprises face many difficulties.
The company said that the next few years will still be full of difficulties and unpredictable fluctuations. More and more strong beer brands of the world are investing in Vietnam, the competition is fiercer. The company's business results are still mainly dependent on Sabeco. After many years of operation, machinery and equipment at Quy Nhon and Phu Yen Breweries began to degrade, productivity decreased, and maintenance costs increased, affecting operational efficiency.
This year the company set a target for volume and revenue to increase compared to the same period last year, but profit has declined, showing great cost pressure. With an output plan of 200 million liters, an increase of 5% compared to last year's implementation, the total revenue in 2023 is VND1,488 billion, an increase of more than 13.5% compared to last year's performance, but the company's pre-tax profit set the target was only VND90 billion while the same period last year reached more than VND220 billion, equivalent to only 40% of last year and down by 59%.
In order to realize the goal, the company said that this year it will reduce costs, focus on manufacturing and trading products with guaranteed quality. Consolidate and develop proprietary products to increase investment efficiency. Simultaneously, research to launch new products, aiming to export beverages to compensate for costs, create jobs for workers and to replace a part of the shortage of Saigon beer output.
Source: VITIC/Tinnhanhchungkhoan


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