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Habeco sets lower revenue target for 2018

Released at: 13:07, 13/06/2018

Habeco sets lower revenue target for 2018


$385.7 million target down 10% on 2017 target.

by My Van

The Hanoi Beer - Alcohol - Beverage Corporation (Habeco - HSX stock code BHN) has set a revenue target of VND8.8 trillion ($385.7 million) for 2018, 10 per cent less than the target for 2017.

The after-tax profit target, meanwhile, is up 23 per cent to VND811.4 billion ($35.5 million), and Habeco’s Board of Directors also proposed paying a dividend of 20 per cent in 2018.

It will develop 355 ml bottles of the Hanoi brand beer to replace its 450 ml bottles. Consumption of the 450 ml bottles fell by 60 million liters last year, or 75.9 per cent of 2016 sales. The proportion of 450ml bottle sales out of total Hanoi bottle sales fell from 47.7 per cent in 2016 to 39.6 per cent.

Habeco put the decline down to two main reasons: consumers are shifting towards higher-end products given rising salaries and prefer smaller bottles in general. Due to a lack of strict management over sales prices, meanwhile, 450 ml bottles are often not profitable.

“While our image is familiar among customers, the corporation has not been able to launch Hanoi in smaller bottles and sales of the larger bottles are down in large cities and provinces,” a senior official from Habeco said.

Habeco will also relocate its operations from the existing brewery in Hanoi’s Hoang Hoa Tham Street to a brewery in the capital’s Me Linh area, where it will use enterprise management systems.

In 2018 it anticipates selling 500 million liters of beer, including 496.3 million liters of Hanoi beer and 3.7 million liters of Uniaqua bottled water, increases of 3.6 per cent and 28.3 per cent against 2017.

Net revenue in the first quarter of this year was VND1.425 trillion ($62.4 million) and after-tax-profit VND110.3 billion ($4.8 million), with the latter up up 12 per cent year-on-year. It therefore reached just 16 per cent of the annual revenue target and 13.6 per cent of the after-tax profit target in the quarter.

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