'Giant' Chuong Duong sarsaparilla is sinking in losses

Chuong Duong Beverage Company (owner of the Chuong Duong Sarsaparilla brand - stock code SCD) announced its Financial Report for the third quarter of 2024 with revenue of more than 36.2 billion VND, an increase of nearly 66% over the same period in 2023. However, the company still suffered a loss after tax of 12.4 billion VND and this is the 15th consecutive quarter the company has suffered losses.

The company that owns Chuong Duong sarsaparilla is sinking into losses.

In the first 9 months of 2024, the owner of Chuong Duong Sarsaparilla achieved a total revenue of nearly 135 billion VND, 1.5 times higher than the same period last year, but the after-tax loss was nearly 45 billion VND. The total accumulated loss up to the end of September was nearly 245.6 billion VND. This enterprise currently has nearly 609 billion VND in loans and financial leasing debts, nearly three-quarters of which are short-term loans, that is, loans due within the next 12 months from the time of preparing the financial report.

Chuong Duong Beverage Company used to be the largest beverage factory in the South and Chuong Duong Sarsi products were popular, helping the company to be stable in the period 2007-2016 with a profit of 20-30 billion VND per year. However, business activities in recent years have been severely affected by high input costs, increased financial costs... Chuong Duong Sarsi leaders once admitted that the company's distribution and sales network has declined by product line and the company does not have enough resources and capabilities to recover as quickly as the market leaders.

Chuong Duong Sarsaparilla is currently a subsidiary in charge of beverage production of Saigon Beer, Alcohol and Beverage Corporation ( Sabeco ). Chuong Duong Sarsaparilla's charter capital is only VND85 billion, of which Sabeco holds 62.06% of shares.

Due to continuous losses in the 3 years 2021 - 2023, in early May, the company's SCD shares were forced to be delisted by the Ho Chi Minh City Stock Exchange and then transferred to the UPCoM floor. However, this stock is currently restricted from trading, only allowed to be bought and sold on Fridays every week. SCD shares have lost liquidity for many sessions, have no transactions and are currently priced at VND 16,000/share.

Source: https://thanhnien.vn/ong-lon-sa-xi-chuong-duong-chim-trong-thua-lo-185241022113352071.htm