SAB - Management has challenging outlook for 2023

- We attended SAB’s AGM on April 27. The meeting focused on the company’s outlook and strategic direction for 2023 and beyond.

- SAB also released Q1 2023 results with revenue and NPAT-MI of VND6.2tn (USD264mn; -15% YoY) and VND967bn (USD41mn; -17% YoY), respectively. We attribute the decline to (1) weak consumption due to the economic slowdown and (2) heightened competition, which were partly offset by softer input costs and margin initiatives.

- SAB’s Q1 2023 revenue and NPAT-MI fulfilled 16% and 17% of our respective full-year forecasts. We see potential downside risk to our current projections, pending a fuller review.