THUONG MAI UNIVERSITY

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GROUP PRESENTATION - GROUP 2

TOPIC:

SABECO Financial Statement Analyzing (HOSE: SAB)

 Introduction
This report is the culmination of our group’s efforts in applying
fundamental financial analysis techniques to evaluate the performance
and position of Saigon Beer – Alcohol – Beverage Corporation
(SABECO – at HOSE is SAB), one of Vietnam’s most prominent
beverage manufacturers. By examining key financial indicators—including
profitability, liquidity, solvency, and investment efficiency—we aim to
provide a comprehensive overview of SABECO’s financial health and
strategic direction.
Through this analysis, we seek to enhance our understanding of how
financial statements reflect a company’s operations and how these
insights support decision-making by investors, managers, and other
stakeholders. This project not only reinforces our theoretical knowledge
but also strengthens our ability to interpret real-world corporate data.
Our group collaborated to gather, interpret, and present relevant data
from SABECO’s financial statements, industry reports, and recent business
developments. We hope this report serves as a valuable learning
experience and a meaningful reflection of our understanding of basic
financial analysis in a practical business context.
Table of Contents
Introduction...................................................................................................................................2
I. Financial Analysis of SABECO.......................................................................................................4
1.1.1. History and Development.......................................................................................................4
1.1.2. Vision and Mission..................................................................................................................5
1.1.3. Business Areas and Product Portfolio.....................................................................................5
1.1.4. Company Scale and Market Position......................................................................................6
1.2 Evaluating the Business Environment........................................................................................8
1.2.1 Evaluating the Specific Industry (Vietnam Beer & Beverage Industry)...................................8
1.2.2 Evaluating the Micro-Environment..........................................................................................8
1.2.3 Evaluating the Macro-Environment.........................................................................................8
1.3. Analyze financial statement.....................................................................................................9
1.3.2. Financial leverage ratios.......................................................................................................10
1.3.4. The asset management ratios...............................................................................................11
1.4. Evaluation of the Financial Statements...................................................................................13
II. Investment project of SABECO..................................................................................................16
Conclusion....................................................................................................................................19
References....................................................................................................................................20
I. Financial Analysis of SABECO.
1.1.1. History and Development.
Saigon Beer – Alcohol – Beverage Corporation (SABECO) originated from a
small brewery established by the French in 1875. SABECO primarily
operates in the production of beer and non-alcoholic beverages. The
corporation currently owns 26 breweries nationwide, with a total
production capacity of over 2.2 billion liters of beer per year (with
potential expansion up to 3.01 billion liters).

SABECO utilizes modern production technology imported from leading

European equipment manufacturers in the beer industry, such as Krones
AG and KHS. SABECO’s beer products are exported to 30 countries
worldwide. The company was officially listed on the Ho Chi Minh Stock
Exchange (HOSE) on December 6, 2016, under the stock symbol SAB,
with an initial price of 110,000 VND per share.
Company Type Public Company
Stock Symbol SAB (HOSE, VN-Index)
Industry Beverages
Established 1875 (over 150 years ago)
Founder Victor Larue
Headquarters Ho Chi Minh City, Vietnam
Operating Vietnam
Area
Key People Koh Poh Tiong (Chairman), Neo Gim Siong
Bennett (CEO)
Products Beer, Alcohol
Production 2.2+ billion liters (2024)
Volume
Revenue 31,872 billion VND (2024)
Net Profit 4,494 billion VND (2024)
Total Assets 33,400 billion VND (Q4 2024)
Equity 24,437 billion VND (Q4 2024)
Ownership ThaiBev
Subsidiaries 25 subsidiaries
Website www.sabeco.com.vn
Main business activities:
Production and distribution of beer, alcohol, soft drinks, and packaging
materials;
Trading of raw materials, equipment, and technology for the beverage and
food industries;
Services in training, R&D, tech transfer, investment consulting,
construction, and maintenance;
Real estate and commercial services.
1.1.2. Vision and Mission.
Vision:
To become Vietnam’s leading beverage industrial group with a strong
position in both regional and global markets by 2025.
Mission:
To honor Vietnamese culinary culture and contribute to elevating the
country’s beverage industry to international standards. SABECO is
committed to improving quality of life through high-quality, nutritious, and
safe beverage products, delivering tangible value to employees,
customers, partners, shareholders, and society.
Core Values:
Traditional Brand Strength: Rooted in history, trusted for authenticity
and simplicity.
Social Responsibility: Committed to public health and environmental
protection.
Collaborative Growth: Emphasizes long-term, mutually beneficial
partnerships.
Commitment: Builds a friendly, engaging workplace for creativity and
dedication.
Continuous Innovation: Constantly evolving to meet market demands
and stay competitive.
SABECO also pledges to pursue sustainable development through its four
pillars: Consumption, Conservation, Country, and Culture.
1.1.3. Business Areas and Product Portfolio.
SABECO’s core business is beer and beverage production. Its product
portfolio includes:

Beer Alcoho Flavor Profile Target Approximat

Name l Audience e Price
Conten (VND)
t
Saigon 4.9% Crisp, clean, Young, ~20,000–
Special slightly sweet dynamic, and 25,000 per
malt flavor with a successful 330ml bottle
refreshing finish. consumers.
Saigon 4.8% Semi-sweet pale General ~22,000–
Export malt with fruity consumers 28,000 per
Premium hints and mild seeking a 330ml bottle
bitterness. balanced lager
experience.
Saigon 4.3% Light-bodied with Everyday ~15,000–
Lager a clean, crisp drinkers 20,000 per
malt looking for a 330ml can
character and refreshing
low hop lager.
bitterness.
Saigon 4.6% Smooth and Young adults ~18,000–
Chill refreshing taste, are seeking a 22,000 per
 tailored for a
modern and 330ml bottle
relaxed drinking easy-drinking
experience. beer.
Saigon 5.0% Rich and smooth Premium ~30,000–
Gold with a premium consumers 35,000 per
malt flavor,
desire a high- 330ml bottle
offering a refinedquality beer
taste. experience.
Lạc Việt 4.5% Clean, crisp, and Consumers ~16,000–
Beer light-bodied with appreciate 20,000 per
subtle malt
traditional 330ml bottle
notes. Vietnamese
flavors.
333 Beer 5.3% Medium-bodied Middle-aged ~22,000–
with light consumers 26,000 per
maltiness, gentle value a classic 330ml bottle
bitterness, and a beer profile.
smooth finish.
In addition, SABECO also produces non-alcoholic beverages under the
Chương Dương brand.
1.1.4. Company Scale and Market Position.
Company Scale
Revenue:
In 2024, SABECO achieved net revenue of 31,872 billion VND, marking a
4.63% increase over 2023, showing consistent growth amid fierce
competition.
Net Profit:
Net profit reached 4,494 billion VND, up 5.64%, indicating improved
cost efficiency and profitability.
Equity:
As of Q4 2024, SABECO’s equity stood at 24,437 billion VND, reflecting
strong financial stability to support expansion.
Assets:
Total assets at the end of 2024 reached 33,400 billion VND.
Production Capacity:
SABECO maintains 26 breweries nationwide, with a total annual output
exceeding 2.2 billion liters, meeting both domestic demand and export
growth.
Market Position:
Market Share:
SABECO remains Vietnam’s largest beer producer, commanding over
40% market share, supported by strong branding, product consistency,
and a nationwide distribution system.
Competitive Challenges:
From 2018 to 2023, SABECO lost about 8% market share due to fierce
competition from Heineken, Carlsberg, and others. This prompted a
strategic focus on product differentiation and marketing.
Summary Table: SABECO and Competitors (2024–2025)
Compan Marke Annual Revenue Key Challenges
y t Production (2024) Strengths
Share Capacity
SABECO ~40% >2.2 billion VND 34.5 Strong Regulatory
liters trillion brand, wide pressure, tax
(~US$1.34 distribution hikes
billion)
Heineke ~37% 1.1 billion Not disclosed Premium Demand
n VN liters positioning, slowdown,
innovation factory
shutdown in
2024
Habeco ~15% 800 million Not disclosed Regional Limited
liters loyalty innovation
Craft Niche Small scale US$570 Innovation, Scale,
Brewerie million premium distribution
s (2024) niche

Trends and Strategies:

The company is investing in premium offerings like Saigon Chill and
Saigon Gold to meet evolving consumer preferences. It is also expanding
exports to promising regions such as Southeast Asia and Africa.

1.2 Evaluating the Business Environment .

1.2.1 Evaluating the Specific Industry (Vietnam Beer & Beverage
Industry)
Market Size & Growth:
Vietnam’s beer market was valued at approximately US$7.89 billion in
2024, with consumption around 3.8 million kiloliters annually, making
it the third-largest beer market in Asia behind China and Japan (Vietnam
Beer Market Set to Reach Valuation of US$ 14.85 Billion By 2033 | Astute
Analytica, 2025 ). The market is projected to grow at a CAGR of 7.27%
from 2025 to 2033, reaching nearly US$14.85 billion by 2033.
Revenue Channels:
Revenue generated from at-home consumption (supermarkets,
convenience stores) is forecasted at US$1.3 billion in 2025, while out-
of-home consumption (restaurants, bars) is much larger at US$3.9
billion1.
Industry Structure:
The market is dominated by large macro-breweries, with SABECO holding
about 40% market share and an annual production capacity
exceeding 2.2 billion liters (Vietnam Beer Market Set to Reach Valuation
of US$ 14.85 Billion By 2033 | Astute Analytica, 2025 ). Heineken Vietnam
follows with a ~37% market share and six breweries producing over 1.1
billion liters annually (Network, 2025). Other competitors include
Habeco and Carlsberg.
Trends:
There is a growing consumer shift towards premium and craft beers,
especially among younger, urban consumers seeking diverse and high-
quality experiences. The craft beer segment is growing rapidly, with a
projected CAGR of 9.02% from 2025 to 2033.
Challenges:
The industry faces stricter government regulations on alcohol
advertising and consumption, notably to curb drunk driving,
and increased excise taxes leading to higher prices and pressure on
profitability (Vietnam Beer Market Set to Reach Valuation of US$ 14.85
Billion By 2033 | Astute Analytica, 2025 ).
1.2.2 Evaluating the Micro-Environment
Customers:
Vietnam’s young population (over 60% under age 35) drives strong
demand for beer as a social and cultural beverage. However, growing
health awareness and regulatory pressures have led to increased demand
for low-alcohol and non-alcoholic options37. Urban consumers are more
inclined to premium and craft beers.
Suppliers:
Key inputs such as malt and hops are often imported, exposing brewers to
global supply chain fluctuations. Packaging materials like glass and
aluminum cans also face price volatility.
Competitors:
SABECO leads with strong brand recognition and distribution networks.
Heineken Vietnam aggressively targets premium segments and
innovation. Habeco holds regional strength but lags in innovation. Craft
breweries are emerging as niche players in urban centers.
Distribution Channels:
Traditional trade (wet markets, small shops) still accounts for over 70% of
sales, but modern trade and e-commerce channels are expanding rapidly.
On-premise sales (bars, restaurants) have been negatively impacted by
drink-driving laws and the COVID-19 pandemic, but are gradually
recovering.
1.2.3 Evaluating the Macro-Environment
Political & Legal Factors:
Vietnam’s Decree 100/2019/ND-CP imposes strict fines and penalties
for drink-driving, with fines up to VND 40 million and license
suspensions. This policy has significantly reduced on-premise beer
consumption, especially in urban areas where enforcement is
stronger. Advertising restrictions further limit promotional activities
Economic Factors:
Despite short-term consumption dips, Vietnam’s GDP growth of
around 5.5% in 2024 and rising disposable incomes support long-term
demand growth. However, inflation and economic uncertainties have
constrained consumer spending recently.
Social Factors:
Increasing health consciousness and lifestyle changes have encouraged
moderation in alcohol consumption. This drives growth in premium, low-
alcohol, and non-alcoholic beer segments.
Technological Factors:
Breweries like SABECO invest in automation and digital marketing to
improve efficiency and brand engagement. E-commerce and social media
play growing roles in consumer outreach.
Environmental Factors:
Sustainability initiatives, such as reducing water usage and increasing
recycling, are becoming priorities for large brewers to meet regulatory and
consumer expectations.
1.3. Analyze financial statement.
1.3.1. Balance sheet.
Financial statement
VND Trillion
2022 2023 2024
 ASSETS
A-SHORT-TERM 26,860,224,573 26,553,405,591 25,066,732,804
ASSETS ,663 ,714 ,106
1. Money and
4,069,464,160, 5,039,908,030, 4,477,501,667,
cash
642 600 326
equivalents
2. Short-term
19,411,469,500 17,741,052,417 16,566,239,177
financial
,000 ,665 ,101
investments
3. Short-term 897,692,694,31 1,229,401,278, 1,818,472,380,
receivables 5 553 110
4. Inventory 2,193,521,139, 2,317,504,988, 1,978,543,927,
336 808 286
5. Other short- 288,077,079,37 225,538,876,08 225,975,652,28
term assets 0 8 3
B- LONG-TERM 7,604,851,042, 7,503,219,247, 8,372,673,560,
ASSETS 093 991 545
1. Long-term
37,720,028,871 34,701,581,051 33,965,243,693
receivables
2. Fixed assets 4,454,982,147, 3,969,724,119, 3,593,253,846,
731 615 771
3. Investment 153,128,987,01 279,064,752,08 268,304,664,07
real estate 0 0 6
4. Long-term
133,548,179,00 143,919,308,28 122,014,021,08
unfinished
0 5 2
assets
5. Long-term
2,214,115,381, 2,287,392,366, 3,672,561,077,
financial
757 503 153
investment
6. Other long- 611,356,317,72 788,417,120,45 682,574,707,77
term assets 4 7 0
TOTAL ASSETS 34,465,075,615 34,056,624,839 33,439,406,364
,756 ,705 ,651
SOURCE OF
CAPITAL
C-ACCOUNTS 9,874,229,696, 8,571,466,944, 9,002,313,181,
PAYABLE 363 838 979
1. Short-term 9,213,862,412, 8,224,608,450, 8,657,140,531,
debt 096 196 800
2. Long-term 660,367,284,26 346,858,494,64 345,172,650,17
obligation 7 2 9
D. EQUITY 24,590,845,919 25,485,157,894 24,437,093,182
,393 ,867 ,672
1. Other
sources of
funding and
funds
TOTAL CAPITAL 34,465,075,615 34,056,624,839 33,439,406,364
,756 ,705 ,651
1.3.2. Financial leverage ratios.
Current assets to total assets ratio=(Current Assets/Total Assets
)×100%
Year Current Assets Total Assets ( VND Ratio
( VND Trillion ) Trillion)
2022 26,860,224,573 34,465,075,615,756 77.93%
,663

2023 26,553,405,591 34,056,624,839,705 77.97%

,714

2024 25,066,732,804 33,439,406,364,651 74.96%

,106

Fixed asset to total assets ratio= ( Fixed Assets/Total

assets)×100%
Year Fixed Assets ( VND Total Assets ( VND Ratio
Trillion) Trillion)
2022 4,454,982,147,731 34,465,075,615,756 12.93%
2023 3,969,724,119, 34,056,624,839,705 11.66%
615

2024 3,593,253,846,771 33,439,406,364,651 10.75%

Debt to Total Assets Ratio= (Total Debt/Total assets) x 100%
Yea Total Debt (VND Total Assets (VND Debt to Total
r Trillion) Trillion) Assets Ratio (%)
202 9,874.23 34,465.08 28.65%
2
202 8,571.47 34,056.62 25.17%
3
202 9,002.31 33,439.41 26.92%
4
Debt to Equity Ratio= (Total Debt/ Shareholders’Equity)x100%
Yea Total Debt (VND Shareholders’ Equity Debt to Equity
r Trillion) (VND Trillion) Ratio (%)
202 9,874.23 24,590.85 40.15%
2
202 8,571.47 25,485.16 33.63%
3
202 9,002.31 24,437.09 36.84%
4

1.3.4. The asset management ratios.

1.3.4.1. Inventory Turnover
Inventory Turnover= Cost of Good Sold/Average Inventory
Average Inventory= (Beginning Inventory + Ending Inventory)/2

1.3.4.2. Receivable Turnover

Receivable Turnover= Net Sales/Average Accounts Receivable
Average Accounts Receive= (Beginning Accounts Receive + Ending
Accounts Receive)/2
2022 2023 2024
Beginning 100.965.921.832 337.852.269.60 467.366.764.22
Accounts 1 7
Receive
Ending 337.852.269.601 467.366.764.22 433.141.431.79
Accounts 7 9
Receive
Average 219.409.095.717 402.609.516.91 450.254.098.01
Accounts 4 3
Receive

1.3.4.3. The working capital turnover

The working capital turnover= Net sales/The average amount of working
capital
Average Working Capital= (Beginning Working Capital + Ending Working
Capital)/2
Beginning Working Capital= Beginning Current Assets – Beginning Current
Liabilities
Ending Working Capital= Ending Current Assets – Ending Current
Liabilities
2022 2023 2024
Beginning 22.877.033.322. 26.860.224.573. 26.553.405.591.
Current Asset 264 663 714
Beginning 7.258.020.535.1 9.213.862.412.0 8.224.608.450.1
Current 53 96 96
Liabilities
Beginning 15.619.012.787. 17.646.362.161. 18.328.797.141.
Working 111 567 518
Capital
Ending Current 26.860.224.573. 26.553.405.591. 25.066.732.804.
Assets 663 714 106
Ending Current 9.213.862.412.0 8.224.608.450.1 8.657.140.531.8
Liabilities 96 96 00
Ending 17.646.362.161. 18.328.797.141. 16.409.592.272.
Working 567 518 306
Capital
Average 16.632.687.474. 17.987.579.651. 17.369.194.706.
Working Capital 339 543 912

1.3.4.4. Fixed Asset Turnover

Fixed Asset Turnover= Net sales/Average fixed assets
Average fixed assets= (Beginning Average fixed assets + Ending Average
fixed assets)/2

1.3.5. Profitability ratios and WACC from 2022 to 2024.

In corporate financial analysis, the ratios of ROA (Return on Assets), ROE
(Return on Equity), and EPS (Earnings Per Share) play a pivotal role in
evaluating a company's operational efficiency and profitability. ROA
measures a company's ability to generate profit from its total assets,
indicating the effectiveness of asset utilization in generating returns. ROE,
on the other hand, focuses on the profit that the company generates on
shareholders' equity, reflecting the efficiency of using the owners'
invested capital. Finally, EPS represents the net profit attributable to each
outstanding share, serving as a crucial metric for investors to assess the
value and growth potential of a stock.
WACC, or the weighted average cost of capital, is the average cost that a
business must pay for each unit of capital raised, including both equity
and debt. WACC plays a crucial role in financial management, used to
assess the feasibility of investment projects by comparing the expected
rate of return with WACC, to make decisions about the optimal capital
structure to minimize the cost of capital, and to value the business by
using WACC as a discount rate for future cash flows.
We have the following formula to calculate WACC:
WACC = (E/V) * Re + (D/V) * Rd * (1 - T)
Based on Sabeco's financial report, we have the following data:
2022 2023 2024
ROA: Return on 15.16 12.09 12.95
assets
ROE: Return on 21.24 16.16 17.12
equity
ROS: Return on 15.72 13.41 13.43
sales
EPS: Earnings 8.14 5.01 3.29
per share
E: Market value 24.590.845.919.3 25.485.157.894.8 24.380.108.150.0
of equity 93 VND 67 20 VND
VND
D: Market value 9.874.229.696.36 8.571.466.944.83 9.002.313.181.97
of debt 3 VND 8 VND 9 VND
V: Total value of 34.465.075.615.7 34.056.624.839.7 33.382.421.331.9
captital(V=E+D) 56 05 99
VND VND VND
Re: Cost of 10.01% 12.0% 10.6%
equity
Rd: Cost of debt 7% 3.89% 3.3%
T: Corporate tax 19.43% 20.47% 20.3%
rate
WACC 6.43% 9.75% 8.45%
(Source: Sabeco's financial statements for 2022, 2023, and 2024
at Vietstock and Cafef)
1.4. Evaluation of the Financial Statements.
1. Financial Leverage Ratios
Ratio 2022 2023 2024 Interpretation
Debt to 28.65 25.17 26.92 Low and stable → SABECO relies
Total Assets % % % more on equity than debt,
indicating low financial risk.
Debt to 40.15 33.63 36.84 Well below 100% → SABECO
Equity % % % maintains a conservative capital
structure and strong solvency.
Fixed 12.93 11.66 10.74 Declining → lower fixed asset base
Assets to % % % could reflect limited expansion or
Total Assets asset optimization.
Conclusion: SABECO is financially sound with minimal dependence
on debt. A decline in fixed asset ratio may suggest reduced long-
term investments or slower growth initiatives.
2. Liquidity Ratios
Ratio 2022 2023 2024 Interpretation
Current 77.93 77.97 74.96 Very high → strong liquidity
Assets to % % % position; over 3/4 of assets are
Total Assets liquid or short-term.
Quick Ratio 2.65 2.92 2.64 SABECO’s Quick Ratios are
(not consistently high (>2.5),
provided but reflecting excellent short-term
inferred) liquidity and financial
strength.
Conclusion: Liquidity is a strength for SABECO. It can comfortably meet
short-term obligations, and cash reserves are high. This gives SABECO
resilience in uncertain market conditions.
3. Activity Ratios (Efficiency)
Ratio Trend Interpretation
Inventory Slight Inventory increased in 2023 and fell in 2024 →
Turnover decline slower turnover may suggest demand
fluctuations or inventory buildup.
Receivables Mixed Receivables rose significantly in 2024 → may
Turnover indicate slower customer payments or more
liberal credit terms.
Fixed Asset Decreasi Falling revenue per unit of fixed assets
 Turnover ng suggests inefficient use of long-term assets or
underutilization.
Conclusion: Operational efficiency is under slight pressure, with inventory
and receivables management needing improvement. Asset utilization,
especially fixed assets, is declining and should be addressed.
4. Profitability Ratios
Ratio 2022 2023 2024 Interpretation
ROA (Return 15.16 12.09 12.95 Solid performance but slight drop
on Assets) % % % → indicates lower asset efficiency.
ROE (Return 21.24 16.16 17.12 High and stable → strong returns
on Equity) % % % to shareholders, despite a slight
drop.
ROS (Return 15.72 13.41 13.43 Margins narrowing → may reflect
on Sales) % % % rising input costs or pricing
pressures.
EPS 8.14 5.01 3.29 Sharp decline → may negatively
(Earnings Per affect investor confidence unless
Share) reversed.
Conclusion: Although still profitable, margins are tightening and earnings
per share are falling. This suggests growing cost pressure, competition, or
inefficiencies that need strategic response.
Overall Summary
Aspect Status
Leverage Strong and conservative
Liquidity Excellent
Efficiency Weakening slightly (esp. fixed asset usage,
receivables)
Profitabili Declining but still healthy
ty

Final Insight
SABECO remains financially healthy and stable with a low-risk capital
structure and strong liquidity. However, it is facing gradual declines in
profitability and efficiency, especially in asset management and earnings
growth. Strategic investments, operational optimization, and margin
improvement are necessary to sustain its market leadership and
shareholder value in the long term.

II. Investment project of SABECO.

2.1. Project Background
SABECO is planning to expand its brewery in Central Vietnam to increase
production capacity by 200 million liters per year. The expansion aims
to meet rising market demand, optimize logistics, and introduce premium
product lines. Here we’re make a hypothesiscally data of the investment
in 5 years.
2.2 Assumed Financial Data
Initial Cash Outflow (ICO):
Item Value (VND
Billion)
Machinery & 3,200
Equipment
Construction 800
Installation Costs 300
Additional Working 500
Capital
Total Initial Outlay 4,800
Operating Cash Flows (Years 1–5):
Item Value (VND
Billion/Year)
Revenue 3,200
 Cost of Goods Sold (58%) (1,800)
Depreciation (Straight-line over (700)
5 years)
Selling Expenses (10%) (300)
Earnings Before Tax 860
Corporate Income Tax (20%) (40)
Net Operating Cash Flow 1,520
Terminal Year (Year 5):
Item Value (VND
Billion)
Salvage Value of 320
Equipment
Recovery of Working 500
Capital
Total Terminal Cash 820
Flow
Discount Rate (Cost of Capital): 15%
2. Calculated Project Evaluation Criteria
2.1 Net Present Value (NPV)
Formula:

Calculation:
Annual cash flow (Years 1–4): 860 billion VND
Year 5 cash flow: 1,520 + 820 = 2,340 billion VND
Discount rate (r): 15%
Initial outlay: 4,800 billion VND
NPV≈611,27 billion
Conclusion:
NPV > 0, so the project adds value and should be accepted.
2.2 Internal Rate of Return (IRR)
Definition:
IRR is the discount rate that makes the NPV of the project equal to zero.

Result:
IRR ≈ 21% (calculated using Excel )
Conclusion:
IRR > required rate of return (15%), so the project is acceptable.
2.3 Profitability Index (PI)
Formula:

Calculation:
PI=1.15
Conclusion:
PI > 1, so the project is profitable.
2.4 Payback Period (PBP)
Definition:
PBP is the time required for cumulative cash inflows to equal the initial
investment.
Calculation:
Cumulative cash flow after 4 years: 1,520 × 3 = 4.560 billion VND
Remaining to recover: 4,800 – 4,560 = 240 billion VND
Year 4 cash flow: 1.520 billion VND
PBP=3+0,7281,268≈3.73 years
Conclusion:
If the company’s maximum acceptable PBP is 5 years, the project meets
this criterion.
3. Decision and Discussion
All evaluation criteria (NPV, IRR, PI, PBP) indicate the project is
financially viable.
If there is a conflict between criteria:
NPV should be prioritized because it directly measures value added to
shareholders and considers the time value of money and all cash flows.
IRR and PI are useful but may be misleading in mutually exclusive or non-
conventional cash flow projects.
PBP is simple but ignores cash flows after the payback period and the time
value of money.
4. Summary Table
Criter Value Decisi
ia on
NPV +611.27bn Accept
VND
IRR 21% Accept
PI 1.15 Accept
PBP 3.6 years Accept
Recommendation:
Based on the above analysis, the SABECO brewery expansion project in
Central Vietnam should be accepted.
 Conclusion
Through our comprehensive financial analysis of Saigon Beer – Alcohol
– Beverage Corporation (SABECO) over the period 2022–2024, we
found that the company maintains a strong and stable financial
foundation, supported by low financial leverage, high liquidity, and
healthy profitability ratios.
SABECO’s quick and current ratios consistently reflect excellent short-
term solvency, and its debt ratios indicate a conservative capital
structure with minimal financial risk. However, we observed a gradual
decline in asset efficiency and earnings per share, signaling
potential challenges in cost control or market competitiveness. While
return on equity remains attractive, the downward trend in return on
assets and fixed asset turnover highlights areas where operational
optimization could be improved.
Despite external pressures such as increasing competition, changing
consumer preferences, and rising regulatory costs, SABECO continues to
deliver solid performance and maintain its leading position in Vietnam’s
beer industry. To sustain long-term growth, the company should focus on
improving asset utilization, enhancing innovation, and exploring new
market segments.
This report demonstrates the value of applying financial ratio analysis to
assess a firm’s stability, profitability, and strategic direction. We believe
that SABECO, with its strong brand and financial discipline, is well-
positioned for continued success—provided it adapts proactively to
evolving industry dynamics.

References
Financial Report of SABECO

Network, A. B. (2025, March 12). Vietnamese beer market to double to US$14.85bn by 2033.
Retrieved from Asia Brewers Network: https://asiabrewersnetwork.com/news/vietnamese-
beer-market-to-double-to-us14-85bn-by-2033

Thương, T. C. (2022). SABECO khánh thành dự án đầu tư nâng công suất Nhà Máy Bia Sài Gòn -
Quảng Ngãi hiện đại nhất khu vực miền Trung. Doanh Nghiệp.

Vietnam Beer Market Set to Reach Valuation of US$ 14.85 Billion By 2033 | Astute Analytica. (2025 ,
March 05). Retrieved from AstuteAnalytica India Pvt. Ltd.:
https://www.globenewswire.com/news-release/2025/03/05/3037598/0/en/Vietnam-Beer-
Market-Set-to-Reach-Valuation-of-US-14-85-Billion-By-2033-Astute-Analytica.html