Thaibev denies rumors on selling Sabeco

By Hoai An - Jun 01, 2020 | 02:04 PM GMT+7

TheLEADERThai Beverage Public Company Limited (Thaibev) has clarified these claims that it is seeking a buyer for its businesses in Vietnam are entirely without merit and confirmed that it has no intention of selling its part in Vietnam in any way.

Thaibev confidents that its businesses in Vietnam will continue to support its dedication to its vision of growth and diversity, and it remains steadfast in its commitment to making Sabeco the pride of Vietnam, it said in the recent announcement.

“As one of the fastest-growing economies in the ASEAN region and the world, Vietnam continues to be one of Thaibev’s core markets and is integral to the company’s goal of becoming a stable and sustainable leader in ASEAN’s beverage industry,” it affirmed.

It will remain fully committed to realizing the full potential of its core businesses in Vietnam, in particular Saigon Beer - Alcohol - Beverage Corporation (Sabeco), and aims to solidify its position as the largest beverage company in Southeast Asia and a leader in beer.

Thaibev’s successful bid for Sabeco shares at the purchase price of VND320,000 per share in 2017 highlighted its confidence in the growth potential of the business and the Vietnamese beer market.

Sabeco has since achieved a 5 per cent increase in net sales in 2018 and continued to deliver a strong performance in 2019, reporting a further 5 per cent increase in net sales and a net profit growth of 22 per cent despite being impacted by inaccuracies and false claims in certain news articles last year.

Thaibev also advised its shareholders to exercise caution and seek appropriate professional advice before dealing in the company’s shares and securities, and refrain from taking any action in respect of their investments which may be prejudicial to their interests.

The rumor of Thaibev appeared amidst Sabeco's poor business operations. In the first quarter of this year, Vietnam's largest beer enterprise recorded net revenue and net profit of VND4,900 billion and VND717 billion, down 47.4 per cent and 44.4 per cent respectively year on year.

The decline in Sabeco's sales is mainly from sales transactions to retailers and distributors which is contributed by Covid-19 pandemic and Decree No.100/2019/ND-CP on administrative sanctions for road traffic and rail transport violations, applicable since January 1, 2020.