Sabeco’s 1Q after-tax profit falls 44% to $30.6mln on virus, drunk-driving law

First quarter profit fell to record low at 44% on economic slowdown caused by coronavirus outbreak and the drunk-driving law that took effect early this year, company said in a consolidated earning report.

The Saigon Beer Alcohol and Beer Joint Stock Corporation (HoSe: SAB) recorded VND4,909 billion ($209 million) revenue in the reported quarter, down 47% from a year ago. This is the lowest figures in several years, the company said.

The beer maker reported decline in revenue and profit when the Decree 100 that fines people driving while getting drunk. The coronavirus outbreak that forced the government to close all of restaurants nationwide to prevent virus spreading became another hit to the business.

In the first three months of this year, Sabeco spent VND238 billion on advertising and marketing but it was not enough to save the falling revenue and profit.

Sabeco shares plunged 45% from the beginning of the year. At the end of the first quarter, the market price was only VND123,000 each, returning to the price range when it was first listed in 2016.

► Sabeco’s parent company says overseas beer sales drop due to Vietnam market slowdown