Sabeco Faces Profit Margin Squeeze Due to Rising Aluminum Prices

Sabeco recently expressed concerns about the fluctuating price of aluminum, a crucial raw material for canned beer production. The Russia-Ukraine war and export restrictions from countries like China have disrupted the global aluminum supply, leading to an 18% year-over-year price increase. This rise in aluminum prices impacts Sabeco's packaging costs and financial planning. To mitigate the impact, the company is reducing its aluminum stockpile and renegotiating supplier contracts. While higher raw material costs pose a challenge, Sabeco expects increased profit margins from its merger with Sabibeco and anticipates higher output in the coming year. Despite a slight decrease in gross profit margin in the last quarter of 2024, Sabeco maintained its market-leading position in Vietnam according to Nielsen.