Chuong Duong Beverage (SCD) Extends Loss Streak to 22 Quarters Despite 50% Revenue Surge
This Aveluro analysis covers SCD on UPCOM in the Food & Beverage sector. The classified event type is earnings miss, with negative sentiment and a deterministic market-impact score of 9.8/10. Aveluro classifies this story as a negative catalyst and risk signal for the affected stock. Source coverage came from VnExpress - Kinh doanh, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Chuong Duong Beverage (SCD), listed on UPCOM, reported Q2 2026 revenue of VND 48 billion, up 50% year-on-year, but net loss widened to VND 6 billion, extending its losing streak to 22 quarters. The company blames high interest costs and limited cash flow, while a planned sale of its Nhon Trach 3 factory and Saxi brand failed to gain shareholder approval.
Key Facts
- Q2 2026 revenue: VND 48 billion, up 50% YoY.
- Q2 2026 net loss: VND 6 billion, compared to a loss of VND 24 billion in Q2 2025.
- Gross profit: VND 18 billion, triple the prior-year period.
- Cumulative H1 2026 revenue: VND 112 billion; net loss: VND 17 billion.
- Full-year 2026 target: revenue of VND 228 billion (up ~50% YoY) and net loss of VND 74 billion.
- Total assets as of end-Q2 2026: VND 600 billion; total liabilities: VND 770 billion, mostly borrowings from the parent company.
- Accumulated losses over the past five years: VND 350 billion.
What Happened
Chuong Duong Beverage (SCD) released its Q2 2026 financial statements, showing a sharp revenue increase but continued net losses. The company’s beverage segment contributed about 70% of revenue, with the remainder from property leasing. Gross profit improved significantly, but interest expenses consumed earnings, resulting in a net loss of VND 6 billion. Management, led by Director Nguyen Thuy Phuong, described the result as a “significant improvement” compared to the VND 24 billion loss in Q2 2025.
In a filing to the Hanoi Stock Exchange, the company attributed the improvement to stronger performance in both beverage and warehouse leasing, along with cost control measures. However, the company remains in a precarious financial position. Earlier this year, the board proposed selling the Nhon Trach 3 factory and related assets, including the Saxi brand, to a foreign partner, with a condition that 35% of the sale price be paid upfront. The deal was not approved by shareholders.
Market Context
SCD shares closed at VND 15,500 on July 19, 2026, on the UPCOM exchange. The stock has been under pressure due to persistent losses and financial distress. The beverage sector in Vietnam is growing at 5-6% annually, with health-conscious products gaining traction, but SCD lacks the capacity to develop such lines. The failed asset sale adds uncertainty to the company’s turnaround prospects.
Strategic Significance
SCD’s inability to break its loss cycle highlights structural challenges: high leverage (liabilities exceed assets), dependence on parent-company loans, and limited product innovation. The blocked asset sale suggests shareholder resistance to dilutive or restructuring moves. Without a clear path to positive cash flow, the company may face further financial strain, especially if input costs rise due to geopolitical tensions. The company’s strategy of cost management and operational restructuring has yet to deliver a net profit.
What to Watch
- Q3 2026 earnings release for signs of narrowing losses or positive net income.
- Any new shareholder proposals regarding asset sales or capital restructuring.
- Changes in interest expense trends as debt levels remain high.
- Ability to develop new product lines in the health-conscious beverage segment.
- Regulatory or parent-company support for debt restructuring.