Sá xị Chương Dương (SCD) Narrows Q3 Loss 52% as Revenue Jumps 50%

Overview

Sá xị Chương Dương (ticker SCD, UPCOM) reported Q3 net revenue of roughly VND 52 billion, up about 50% year on year, while its net loss narrowed to VND 13 billion from VND 27 billion a year earlier. The result extends a loss streak to 23 consecutive quarters, but marks a clear sequential improvement in both sales and gross margin for the Hồ Chí Minh City-based beverage maker.

Key Facts

• Q3 net revenue of approximately VND 52 billion, up about 50% year on year (described in the filing as “gấp rưỡi” or 1.5x).
• Q3 gross margin reached 34%, versus roughly 20% in the same quarter last year.
• Q3 net loss of VND 13 billion, down from a loss of nearly VND 27 billion a year earlier, a 52% narrowing.
• 9M revenue of VND 158 billion; 9M net loss of VND 30 billion versus VND 73 billion in the same period of 2025.
• Full-year 2026 targets: revenue of VND 228 billion (about 1.5x last year) and a net loss of VND 74 billion.
• Cumulative losses of VND 350 billion over the past five years, per the article.
• A planned transfer of the Nhơn Trạch 3 plant and related assets, including the Saxi brand, to a foreign partner was not approved by the general meeting of shareholders.

What Happened

Công ty cổ phần Nước giải khát Chương Dương disclosed the figures in its quarterly financial statements. Gross margin improved sharply to 34% from about 20%, meaning the company retained VND 34 of gross profit per VND 100 of revenue after cost of goods sold. Interest expense remained the main drag on profitability, while selling and general administrative costs trended lower.

Company director Nguyễn Thúy Phượng attributed the improvement to strong growth in both the beverage segment and warehouse leasing, alongside tighter cost control and better operating efficiency. She said these offset part of the impact of sharply higher transport costs driven by fuel prices. In a written explanation of the results, Phượng said the company is restructuring to improve operating efficiency, reduce accumulated losses and restore sustainable profitability. Management also flagged that domestic beverage market growth averages 5-6% a year, with health-oriented, low-sugar and sugar-free drinks benefiting most from shifting consumption habits, but said the company currently lacks the capacity to develop those product lines.

Market Context

SCD trades on UPCOM, the Hanoi-based unlisted public company market, and closed at VND 12,700 on 18 October 2026. The stock sits in the consumer staples sector, where larger HOSE-listed peers such as Vinamilk and SABECO dominate liquidity and index flows; SCD’s small free float and persistent losses keep it outside mainstream institutional coverage. The Q3 improvement comes against a domestic beverage market growing only 5-6% annually, and against a broader Vietnamese consumer backdrop where input and logistics costs remain sensitive to fuel prices and Middle East conflict risk.

Strategic Significance

The core question for long-term holders is whether the margin recovery is structural or cyclical. Doubling gross margin to 34% on 50% revenue growth suggests better product mix and cost absorption, but interest expense still consumes the gross profit, and the company’s own full-year plan projects a VND 74 billion loss, wider than the 9M figure of VND 30 billion. That implies management expects losses to accelerate in Q4, a signal that the balance sheet, not the income statement, is the binding constraint. The rejected sale of the Nhơn Trạch 3 plant and Saxi brand removes the most obvious deleveraging lever, leaving restructuring and warehouse leasing as the near-term cash engines.

What to Watch

• Q4 and full-year 2026 results, to test whether the VND 74 billion loss target implies a sharp Q4 deterioration.
• Interest expense line and any refinancing or debt-restructuring disclosure, given limited cash flow and repayment pressure.
• Any revived proposal to divest the Nhơn Trạch 3 plant or Saxi brand, and whether a new shareholder vote is scheduled.
• Gross margin sustainability at or above 30% once fuel and logistics costs are reflected in Q4.
• Progress on low-sugar and health-oriented product development, which management says it currently lacks capacity to pursue.