- 2024-10-31T00:00:00
- Company Research
* 9M 2024 results:
- SAB announced its 9M 2024 results with net revenue of VND22.9tn (USD917.6mn; +5% YoY) and NPAT-MI of VND3,365bn (USD134.6mn; +6% YoY).
- The results complete 70% and 75% of our respective full-year forecasts and are in line with our expectations. We thus see no significant risks to our 2024F forecasts, pending a more comprehensive review.
* Q3 2024 results:
- Net revenue increased 3% YoY to VND7.7tn (USD306.8mn) in Q3 2024, driven by beer revenue rising 4% YoY, which we mainly attribute to higher YoY ASP despite continued strict enforcement of drunk driving laws. Additionally, Q3 2024 EBIT increased at a significantly faster pace than net revenue growth at 29% YoY. This is due to SAB optimizing its selling expenses (mainly coming from 19% YoY lower advertising & promotional - A&P expenses). However, lower net financial income YoY and a lower gain from associates YoY dragged NPAT-MI growth to 7% YoY, reaching VND1,119bn (USD44.8mn) in Q3 2024.
- Profitability: Beer GPM slightly contracted by 0.9 ppts to 33.2% in Q3 2024, which is mainly due to SAB continuing to realize high-cost raw materials. However, the blended EBIT margin expanded by 3.1 ppts to 15.5% in Q3 2024, driven by A&P expenses/beer revenue declining by 3.5 ppts to 6.8% - the lowest level over the last 10 quarters.
SAB’s Q3 2024 & 9M 2024 results
VND bn | Q3 2024 | YoY | 9M 2024 | YoY | 9M 2024/ Vietcap's 2024F |
Net revenue | 7,670 | 3% | 22,940 | 5% | 70% |
Beer revenue | 6,932 | 4% | 20,379 | 4% | 71% |
Others | 738 | -1% | 2,561 | 9% | 65% |
Gross profit | 2,278 | 2% | 6,819 | 3% | 70% |
Beer GP | 2,302 | 1% | 6,846 | 2% | 70% |
Other GP & sales deduction | -24 | -48% | -27 | -44% | 35% |
Selling expenses | -868 | -22% | -2,612 | -17% | 58% |
G&A expenses | -224 | 10% | -610 | 4% | 72% |
EBIT | 1,186 | 29% | 3,597 | 24% | 82% |
Net financial income | 241 | -32% | 799 | -22% | 65% |
Gain/loss from associates | 51 | -34% | 67 | -66% | 27% |
Net other income | -7 | 291% | -26 | 80% | 74% |
PBT | 1,471 | 9% | 4,408 | 7% | 75% |
NPAT-MI | 1,119 | 7% | 3,365 | 6% | 75% |
Blended GPM | 29.7% | -0.4 ppts | 29.7% | -0.5 ppts |
|
Beer GPM | 33.2% | -0.9 ppts | 33.6% | -0.5 ppts |
|
Blended EBIT margin | 15.5% | 3.1 ppts | 15.7% | 2.4 ppts |
|
EBIT/beer revenue | 17.1% | 3.4 ppts | 17.7% | 2.8 ppts |
|
Blended NPAT-MI margin | 14.6% | 0.5 ppts | 14.7% | 0.2 ppts |
|
A&P spending/Beer revenue | 6.8% | -3.5 ppts | 7.4% | -2.4 ppts |
|
Source: SAB, Vietcap
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