SPSC focuses on real estate and tourism development after the biggest partner cut the contract to provide beer marketing service..
Saigon Petroleum Services Joint Stock Company (SPSC) four years ago was one of the leading beer marketers in the market. The company has more than 2,000 employees, the sales growth is continuous and sometimes surpasses the 200 billion mark.
However, this did not last long when the largest partner, Heineken distributor in Vietnam, terminated the contract in mid-2016 to apply the recruitment policy and appoint a new marketing service provider. SPSC immediately fell into crisis after this announcement. Revenue decreased by more than VND 120 billion compared to the previous year, while other industries had not yet grown to compensate. The scale of operations was narrowed, resulting in large number of staff cuts. By the end of last year, the company had fewer than 40 people.
The financial statements show that 2018 is the third consecutive year the company has operated in a downward direction. Main business registration is beer marketing, but sales are zero. Leasing premises and tourism services became the supporting force to restrain the negative growth momentum with annual sales of VND 22 billion and VND 25 billion respectively.
Profit after tax continued to fluctuate around VND 6-8 billion, mainly coming from commitments under real estate business cooperation contracts. Specifically, the company signed an agreement with CT Real Estate Joint Stock Company to establish an enterprise to implement a high-class apartment project in District 3, Ho Chi Minh City. The company is responsible for legal procedures until the land has a certificate of use rights, then handed over the site to the new business project implementation. The company received a fixed interest of 2 billion VND each year from 2014-2016, then increased to 5 billion per year until 2022 and according to the actual capital contribution ratio until the end of the project.
Vietnam’s beer market is perceived to be more and more exciting as more foreign brands enter, but this year’s SPSC business plan shows that this business is not ready to find new partners to redevelop its business. this. There are even signs that the company will divest when giving authority to the Board of Directors to decide on some important issues such as changing business lines, investing or selling assets valued at over 35% of the total asset.
The company aims to earn VND 68 billion in revenue this year thanks to its focus on leasing houses, offices, travel services … and adding overseas study counseling services, ticket agents. fly. Profit after tax is expected to surpass the stable threshold, up to 10 billion.
* Source: VnExpress