Company Insight

Update SAB’s business result in Q1/2026

SAB recorded revenue of VND 6,457 billion in Q1/2026 (+11% YoY) thanks to improved beer sales. Gross profit grew impressively by 28% due to a 5 percentage point YoY improvement in gross profit margin, and after-tax profit also increased sharply by 56% YoY. The reasons for the growth in business results are: (1) The base in Q1/2025 was low, Q1/2026 benefited from Tet sales volume due to the late Lunar New Year; (2) The gross profit margin improved due to the use up of high-priced malt inventory; and (3) Q1/2025 was affected by a one-off financial expense of VND 85 billion related to the SBB purchase transaction. This expense was subsequently reversed in Q3 after completing the procedures. The after-tax profit margin in Q1/2026 reached 19.3%, an increase of 5.5 percentage points YoY.

Outlook for 2026

In 2026, we forecast beer revenue to grow by 11.7% YoY thanks to the effectiveness of the strategy of expanding the modern distribution channel (MT) to compete for market share and proactively seeking traditional channel (GT) sales points to replace those closed due to the impact of new regulations on household businesses, combined with the major football event, the World Cup, taking place during the year, facilitating sales growth. During the year, SAB also implemented a cash van model in the Mekong Delta region to increase market coverage.

The recent increase in aluminum prices due to geopolitical tensions has not yet been reflected in Q1's financial results. Sabeco has a policy of purchasing raw materials 3-6 months in advance to proactively prepare, and also has plans to reduce can production costs to control input costs. We project the 2026 gross profit margin to be 70 basis points lower than the same period last year. LNST 2026F is projected to grow by 7.3%, with the full-year SG&A expense margin well controlled at 18.1%.