Sabeco (SAB) wants to buy more shares of two companies that are losing hundreds of billions of dollars, making them a subsidiary

Saigon Beer – Alcohol – Beverage Joint Stock Corporation (Sabecocode: SAB) has just issued a decision approving the policy of implementing the proposal to increase the ownership rate at Joint Stock Company Saigon Binh Tay Beer Group (Sabibeco Group) and Joint Stock Company Saigon Packaging Group (Saigon Packaging Group) in accordance with the provisions of law.

After completing the necessary procedures, these two companies will become Sabeco’s subsidiaries. As of December 31, 2022, Sabeco holds 21.8% of the shares of Saigon Binh Tay Beer, and less than 20% of the shares of Saigon Packaging.

Sabeco had 25 subsidiaries as of the end of last year. If completing procedures to increase ownership in Saigon Binh Tay Beer and Saigon Packaging, Sabeco will have 27 subsidiaries.

According to research, Sabibeco was established on November 25, 2005. The company officially changed its name to Saigon Binh Tay Beer Group Joint Stock Company (Sabibeco Group) in 2018. Currently, it consists of 6 member factories: Saigon Beer Factory – Hoang Quynh, Saigon Beer Factory – Binh Duong, Saigon – Dong Thap Brewery, Sai Gon – Ninh Thuan Brewery, Saigon – Phu Ly Brewery, Saigon – Long Khanh Brewery.

Sabibeco’s revenue is still steadily over trillion per year and peaked in 2019 with nearly 2,900 billion. However, the business results of this business have plummeted in 2 years of Covid-19 when it lost hundreds of billions of dong.

And Saigon Packaging Group was established in 2007 when investing in Bac Vinh industrial park according to the policy of attracting investment of Nghe An province.

The company has 2 factories including: Factory producing 02-piece aluminum cans and factory of cartons and cartons with a total investment capital for the project of nearly 1,000 billion VND, with an area of ​​80,000m2 in Bac Vinh Industrial Park – TP. . Vinh – Nghe An province.

In October 2018, the company merged Sabeco Dong Thap Packaging Joint Stock Company and Minh Phuc Printing and Packaging Joint Stock Company, raising its charter capital from VND 300 billion to more than VND 560 billion.

In the period of 2020 – 2021, Saigon Packing Group reported a loss of hundreds of billion dong/year similar to Sabibeco.

SAB’s move to increase ownership rate in these two companies took place after recording excellent business results. In the whole year of 2022, Sabeco’s net revenue reached VND 35,235 billion, an increase of nearly 33% compared to 2021. The company’s profit after tax reached nearly VND 5,500 billion. This is the company’s highest profit in history.

Explaining the breakthrough profit in 2022, Sabeco said that the company has many sales and marketing support programs to help boost sales for brands. At the same time, the company improved production efficiency, implemented cost-saving measures, helping to minimize the impact of higher input costs.

In 2017, ThaiBev acquired a 54% stake in SAB for $4.8 billion, becoming the parent company of this brewing company. Thapana Sirivadhanabhakdi, CEO of ThaiBev in a recent sharing also emphasized: “Sabeco is our jewel – a rare asset among all assets related to the brewing industry in Southeast Asia.” .

As of December 31, 2022, Sabeco’s total assets stood at 34,465 billion, up 13% compared to the beginning of the year. In which, cash and deposits account for more than 23,480 billion dong. On the capital side, Sabeco has VND 9,874 billion of liabilities, most of which are short-term debts, total debt is at VND 1,033 billion. Equity is at VND 24,591 billion.