Vietnam Insider – Saigon Beer-Alcohol-Beverage Corporation (Sabeco, ticker: SAB), the country’s largest brewer, posted its highest quarterly profit in over three years (Q3 2025) by aggressively cutting costs and leveraging lower commodity prices, effectively offsetting a major drop in beer sales volume due to Vietnam’s strict zero-tolerance drunk driving laws.
The Earnings Paradox: Record Profit on Falling Revenue
Vietnam’s consumer sector is grappling with the intense enforcement of a strict zero-alcohol driving decree. This regulation has severely impacted beer consumption, causing Sabeco’s third-quarter revenue to fall 16% year-on-year to approximately $263.8 million USD.
However, Sabeco achieved a remarkable financial feat. Its net profit after tax soared 21% to nearly $57.54 million USD—the highest quarterly profit for the company in more than three years.
How did the beer giant accomplish this? A massive reduction in the cost of goods sold (COGS).
- Cost of Goods Sold (COGS) fell 25% year-on-year, thanks primarily to falling global prices for key raw materials like malt barley and more efficient usage across its operations.
- This cost control improved the Gross Profit Margin to 37.1%.
Furthermore, Sabeco booked significant one-off gains, including a reversal of long-term financial investment provisions and profit from a business combination (acquiring Bia Bình Tây as a subsidiary).
Long-Term Headwinds: The Market Reality
Despite the strong quarterly performance, the cumulative results for the first nine months of 2025 reflect the severe market pressure:
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Source: Vietnam Insider