Private equity firm Creador acquires 13% of Vietnam’s Long Chau pharmacy chain

Creador Sdn. Bhd., a private equity firm headquartered in Malaysia, has acquired a 13% stake in FPT Long Chau Investment JSC, one of Vietnam’s largest pharmacy chains and a subsidiary of retail major FPT Retail.

The information was unveiled at FPT Retail’s 2025 AGM on Friday, where the company’s leaders confirmed that FPT Retail will remain the controlling shareholder of Long Chau.

Creador made its investment in two phases over the course of one year, acquiring both newly issued shares and existing shares from individual shareholders.

This marks Long Chau’s first-ever fundraising round and Creador’s second investment in Vietnam.

Established in 2011, Creador focuses on long-term investments in high-growth companies across South and Southeast Asia, with assets under its management exceeding $3 billion.

In December 2024, Creador closed its sixth fund at $930 million, surpassing a $750 million target. Cooperation with Long Chau marks Creador’s 59th investment since its inception.

FPT Retail chairwoman Nguyen Bach Diep welcomed Creador as a key partner in Long Chau’s growth journey, highlighting the fund’s financial strength and experience that will help Long Chau enhance its product and service quality.

Q1 profit triples year-on-year

For 2025, FPT Retail, owner of FPT Shop and Long Chau Pharmacy, targets revenue of VND48.1 trillion ($1.85 billion) and pre-tax profit of VND900 billion ($34.6 million), up 20% and 71% from 2024, respectively.

Revenue from FPT Shop, a retail chain of digital products, is expected to grow 6%, while FPT Long Chau’s revenue is projected to rise about 28%, remaining the main engine for FPT Retail.

If achieved, this would set a new record for the company.

FPT Retail’s highest-ever profit was VND554 billion ($21.3 million) in 2021, a favorable year for its ICT (information and communication technology) segment amid surging demand for phones and laptops for remote learning and working during the Covid-19 pandemic.

Company executives said the targets were set amid expectations of a positive economic recovery in Vietnam in early 2025. However, given the uncertainties stemming from geopolitical tensions, global macroeconomic factors, and recent trade frictions, FPT Retail is approaching 2025 with a cautious and flexible mindset, aiming for effective and sustainable growth.

In Q1, its consolidated revenue was estimated at VND11.67 trillion ($448.5 million), up 29% year-on-year, with Long Chau remaining the primary driver, contributing over VND8 trillion ($307.4 million).

Net profit tripled from a year earlier to VND270 billion ($10.4 million). As a result, FPT Retail achieved 24% of its full-year revenue target and 30% of its profit goal.

FPT Retail planned a 25% stock dividend for 2024, offering one new share for every four held.

Long Chau pursues cautious expansion

In 2025, FPT Long Chau aims to open 430 new stores, including pharmacies and vaccination centers.

Long Chau Pharmacy is poised to retain its market dominance in prescription drugs, along with new-generation, rare, and specialty medications.

Additionally, Long Chau will regularly update its vaccine portfolio to prevent serious diseases, meeting the growing demand for public health protection.

Diep said the pace of new Long Chau Pharmacy openings will slow this year, as revenue tends to decrease in communes. The company is focusing more on efficiency than speed in its pharmacy expansion this year.

In the technology retail sector, FPT Shop will continue restructuring its product portfolio and expanding investment in new products and services to improve business performance.

The company is gradually introducing home appliances into its FPT Shop stores, prioritizing smart, energy-efficient, and environmentally friendly products. It is also transforming its model and operations to meet the diverse needs of customers, particularly young families.

At the same time, the company will continue to develop its mobile virtual network operator (MVNO) to complete its digital ecosystem.

Going forward, FPT Shop will persist in researching and developing new services and optimizing advanced technologies to enhance customer experience and spur sustainable growth.

FPT Retail is listed on the Ho Chi Minh Stock Exchange as FRT, which closed Friday at VND163,000 ($6.26) per share.