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Home / Investment / Opportunities
Habeco reports positive performance ahead IPO
Nguyen Tung 14:58, 2018/02/01
Hanoi Beer Alcohol and Beverage Corp. (Habeco)’s net revenue and net interest income in 2017 are estimated at VND9.8 trillion (US$430 million) and VND751 billion (US$33 million), according to the company’s latest financial statement.
In the fourth quarter of 2017, Vietnam’s second largest brewer reported a net revenue at VND2.6 trillion (US$114 million), a reduction of 30% over the last period. Accumulated profit was VND635 billion (US$27 million), decreasing 20% year-on-year. 
 
Habeco is currently negotiating with Carlsberg over potential take-over.
Habeco is currently negotiating with Carlsberg over potential take-over.
Consequently, Habeco’s net revenue for 2017 was recorded at VND9.8 trillion (US$430 million), 2% less than in 2016, while its accumulated profit decreased by 6.7% to VND2.7 trillion (US$118 million).

2017 proved to be a difficult year for Habeco with slight declines in revenue and profit from affiliates and consortiums, combined with an increase of 6% in operating costs, which led to a sharp 20% decrease in net revenue.

Thanks to the revenue of VND43 billion (US$1.8 million) from other sources, such as recollecting beer kegs and casks or assets liquidation, Habeco recorded a pre-tax profit of VND972.6 billion (US$42 million).

As of the end of 2017, the total assets of Habeco were worth VND9.5 trillion (US$438 million), decreasing 2.5% compared to the year’s beginning, VND5.2 trillion (US$228 million) of which were short-term assets and VND4.8 trillion (US$210 million) were long-term assets.

Notably, Habeco currently keeps VND3.7 trillion (US$162 million) deposited at banks, up 5.6% over the same period last year and accounting for 39.5% of its total assets. 

The total debts of Habeco were reported at VND2.8 trillion (US$122 million), reducing 14%, including 78 and 66% in short-term (VND600 billion or US$26.3 million) and long-term debts (VND609 billion or US$26.7 million), respectively. 

In an unrelated move, Danish brewer Carlsberg, currently Habeco’s strategic shareholder, is considering acquiring a majority holding in Habeco. As such, the two sides are negotiating conditions for a potential take-over, disclosed Deputy Prime Minister Vuong Dinh Hue in an interview with Bloomberg. 

Previously, in late 2016 Carlsberg planned to increase its stake in Habeco to 61.79 from 17.51%, according to Tayfun Uner, former CEO of Carlsberg Vietnam. 

As Carlsberg is having the right of first refusal, it is vital for the two sides to work out the deal before Habeco can proceed with taking its shares to the stock market. The major hurdle in the negotiations is believed to be the high share price set by Habeco that exceeds Carlsberg’s valuation.

Habeco’s equitization plan is expected to be submitted to the government once negotiations with Carlsberg are concluded, added Hue. As such, Habeco plans to start selling its shares to the public in the first quarter of 2018, according to the Ministry of Industry and Trade.

Vietnam is sending a message to investors that it will drive a hard bargain to get the highest price for government assets, especially for those considered to be “crown jewels”—Sabeco last December and now Habeco—shared Marc Djandji, Head of Institutional Sales at Viet Dragon Securities to Bloomberg.

In last December the government sold a 53.59% stake in the Saigon Beer Alcohol Beverage Corp. (Sabeco)—the country’s largest brewer—to Thai Beverage for US$4.84 billion at an auction. The shares changed hands at VND320,000 ($14) each, nearly 10% higher than the market price.
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