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|Neo Gim Siong Bennett, new chairman of Chuong Duong Beverages|
Chuong Duong Beverages has just announced the resolution of the Board of Management on appointment of Singaporean businessman Neo Gim Siong Bennett as new chairman and legal representative of the company in 2018-2023 to replace the former chairman Tran Duc Hoa.
At the annual general shareholders’ meeting of Chuong Duong on July 19, Neo Gim Siong Bennett was elected as a member of Chuong Duong’s Board of Management, recommended by Saigon Beer-Alcohol-Beverage Corporation (Sabeco). He also represents Sabeco holding 2.38 million shares, equivalent to 28.06 per cent of Chuong Duong’s charter capital.
The Singaporean businessman was appointed deputy general director of Sabeco in May 2018, and chairman of VND10-million-charter-capital Saigon Beer Company Limited, established last week.
The new Board of Management of Chuong Duong has five members, most of whom were recommended by Sabeco. The annual general shareholder meeting also approved the business plan with VND387 billion ($17.05 million) of total sales and VND4.7 billion ($0.2 million) of pre-tax profit.
Earlier, leaders of Chuong Duong stated that the business results in 2017 recorded a loss of VND3 billion ($0.13 million) meaning the company could not pay dividends at 20 per cent as per the plan proposed at last year’s general shareholders’ meeting.
However, Sabeco, which holds 62 per cent of Chuong Duong’s charter capital, asked the company to pay dividends. They proposed to take VND17 billion ($0.75 million) of development investment fund for dividends payment.
|Business results of Chuong Duong Beverages over recent years|
In 2017, Chuong Duong’s net revenue declined 47 per cent on-year to VND88 billion ($3.9 million) due to consumption falling by over 7 million litres. While the beverage market maintains a stable growth momentum, the company’s revenue and profit fell sharply. In 2017, accumulated revenue hit VND339 billion ($14.93 million) and pre-tax profit was a negative VND2.2 billion (nearly $0.1 million).
The difficulties the company is facing have arisen from slow adaptation to the changing market and consumer taste, as well as lack of capital. Chuong Duong still uses old production lines from the 2000s, forcing them to outsource a large portion of their production. This has pushed costs and products prices too high, making it difficult for them to compete on the market.
Chuong Duong is one of the largest beverage companies in Vietnam offering popular products such as carbonated soft drinks such as saxi, soda, orange and strawberry, non carbonated soft drinks and pure bottled water.