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SAB – Leveraging low material costs, the spotlight on special consumption tax (SCT)

• In Q2-2025, SAB’s results were gloomy with net revenue of VND 6,804 bn (+17.1% QoQ, -15.9% YoY), NPAT-MI reached VND 1,208 bn (+52.2% QoQ, -3.3% YoY), due to the impact of special consumption tax costs after the merger of Sabibeco (UpCOM: SBB) and declining competitiveness with rival Heneiken.
• A bright spot in SAB’s otherwise subdued Q2 performance was the reduction in input costs. The company had fully consumed its higher-cost raw material inventory in 2024, and starting in 2025, input prices have returned to average levels.
• With SAB’s business outlook entering a saturation phase post-COVID and the looming impact of a sharp increase in special consumption taxes, the key investment highlight lies in its steadily rising cash dividend payouts. SAB has gradually increased its dividend payout ratio since the post-COVID period—when the beer industry began to show signs of stagnation—ranging from 60% to 120%. Dividends are funded by the company’s annual net profit and a sizable retained earnings balance of approximately VND 9,200 bn.
• SAB is well-suited for dividend-focused investment strategies, offering a dividend yield of 10.4% per annum. It also appeals to value-oriented investors seeking opportunities in undervalued stocks following sharp market corrections—particularly as SAB’s market price gradually approaches its fair value of VND 48,000 per share, which already reflects the anticipated headwinds in 2025.