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Sabeco (SAB VN) – Q1 2025 Earnings – Tough Start, but Rebound Signals Brewing
Summary of Q1 2025 results and outlook of Sabeco JSC (SAB VN)
- Sabeco reported a Q1 2025 decline in net revenue by 19.1% y/y to VND5,811bn, mainly due to lower beer consumption following the implementation of Decree 168/2024, which raised drink-driving penalties. Beer sales (88.2% of total sales) declined 15.3% y/y with volumes at 274 million liters (-14.7% y/y). The decline was partly offset by the consolidation of Sabibeco (SBB), following SAB’s stake increase from 22.7% to 65.9%. During the Tet holiday, a shift in consumer preference toward premium beers —such as Heineken (+13.0% y/y)—as gifts for in-home activities further weighed on SAB’s mainstream volumes. Other segments’ sales fell 27.6% y/y to VND452bn, mainly due to weaker trading raw material, which has minor profitability, tied to lower beer output.
- Net profit dropped 20.5% y/y to VND793bn reflecting lower sales volume. Positively, gross margin improved from 29.2% to 33.2%, driven by reduced input costs (aluminum, malt) and more cost-efficient packaging. SG&A expenses remained flat y/y.
- For the rest of 2025: Vietnam beer demand is forecast to recover as consumers quickly adapt to new laws and increasingly opt for public transport (metro, taxi and motor taxi). Major events including the 50th anniversary of National Reunification, the FIFA Club World Cup, and the 80th National Day celebration— alongside strong tourism growth (+23.8% y/y in 4M2025 with high double-digit level expected through year-end), driven by expanded visa waivers and new direct international flights, are set to drive F&B spending including beers. In April, SAB relaunched its economy beer, Lac Viet, to boost rural sales. Net sales are expected to rise in the next quarters, offsetting low Q1 results, keeping full-year sales stable year-on-year.
- Vietnam beer market outlook: Local market is entering a more moderate growth phase post-law, reflecting changing consumption patterns. In urban areas, premiumization is driving growth, as rising incomes and evolving tastes are shifting toward premium beers, flavor-rich offerings— lifting average selling prices despite flat or lower volumes. SAB is capitalizing on it through its mid-price beers of Saigon Special and new Pilsner, premium offerings (Saigon Chill), and a dedicated R&D brewing center to drive innovation. In rural areas, home to over 61.8% of the population, SAB leads with its affordable brands (Lager, Lac Viet, 333), faster income growth and higher FMCG spending are lifting the demand.
Read our previous analysis on SAB’s quarterly earnings.
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Photo image credit: https://www.sabeco.com.vn/
