F&B Industry 2025: EFFORTS TO RENEW GROWTH DRIVERS
The Food & Beverage (F&B) industry has entered a saturation phase with single-digit growth primarily driven by price (related to inflation) over the past 5 years. This, coupled with the limited market share (too large to expand), has resulted in large players such as VNM (dairy), SAB (beer), MCH (convenience foods, seasonings), and QNS (soy milk) still recording low single-digit revenue growth for 2025.Regarding profit margin trends, we see industry giants aggressively boosting discounts and advertising to both maintain their "high" market share in key segments and facilitate easier entry into new segments. Therefore, profit margins are expected to be difficult to expand in 2025.
As business model still heavily depends on old pillars, stock prices have reflected medium-term growth potential. In detail, VNM (NEUTRAL, TP: 66,900 VND/share), QNS (NEUTRAL, TP: 52,100 VND/share), and MSN (MONITOR, TP: N.A) are on our watchlist. Notably, these companies have maintained high dividend payout ratios for many years (over 60% of net profit/year), corresponding to dividend yields of VNM (5.3%/year), SAB (6.0%/year), and QNS (8.0-11.0%/year). Compared to deposit interest rates (5%/year), QNS is considered a suitable stock for dividend investment strategies
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