Hanoi (VNS/VNA) - Shareholders in Saigon Beer-Alcohol-Beverage Corporation (Sabeco) have approveda plan to raise its dividend payment for 2018 from 35 to 50 percent.

The decision, announced at the annual shareholders’ meeting on April 12, caughtinvestor attention due to the fact net profit declined 11 percent in 2018, itsfirst drop since 2013.

Sabeco reported net revenue of 35.95 trillion VND (1.54 billion USD) in 2018, up5 percent over 2018 and surpassing the yearly target by more than 2 percent.However, its profit after tax dropped 11 percent on-year to 4.4 trillion VND (roughly 189 million USD).

Sabeco witnessed big changes to its management board last year, with arepresentative of Vietnam Beverage, an indirect subsidiary of Thai Beverage(ThaiBev) controlled by tycoon Charoen Sirivadhanabhakdi, joining its executiveboard in the second quarter.

The company paid total 35-percent cash dividend last year worth more than 2.2 trillion VND, of which ThaiBev received 1.2 trillion VND. With the higherdividend rate, expected to pay this year, Sabeco will pay an additional 960billion VND and ThaiBev will collect an extra 515 billion VND.

Sabeco’s undistributed profit was estimated at 6.7 trillion VND after thedividend payment, but the company still faced the risk of being forced to paytax and fines worth 3.14 trillion VND from the HCM City Tax Department forviolations.

Sabeco has set higher targets for 2019 with net revenue of 38.87 trillion VND (1.7 billion USD) and net profit of 4.7 trillion VND (202 million USD), up 7.5 percentand 6.7 percent year on-year, respectively.

Neo Gim Sion Bennett, Sabeco’s general director, has maintained a positiveoutlook for Vietnam’s beer market with a growth rate of 5 percent over thenext five years.

Sabeco plans a 6-per-cent increase in output to more than 1.9 billion litres in2019. Last year, nearly 1.8 billion litres of Sabeco’s beer were consumed, up0.3 percent year-on-year.

The company said it will invest to raise the capacity of sales teams anddistribution networks rather than applying discounts, emphasising the policy ofmaintaining stable prices throughout the system.

Sabeco is concentrating on the domestic market and will strengthen its brandbefore reaching out to the world, the company representative said at themeeting.

Regarding the intention of buying more shares in Sabeco, ThaiBev said it issatisfied with the current ownership and if more room is available, it will consider the move carefully.

Shares in Sabeco, with sticker SAB on the Ho Chi Minh Stock Exchange, are themost expensive shares nationwide, being traded at around 244,000 VND (10.48 USD)per share.-VNS/VNA