FPT Retail earns $6.5 mln in Q3 profit, to expand FPT Shop chain

Vietnamese retail major FPT Retail made a profit after tax of VND165 billion ($6.52 million) in the third quarter of this year, while it incurred a loss of VND13 billion ($514,000) in the same period last year.

The Q3 revenue of the company, listed on the Ho Chi Minh Stock Exchange as FRT, increased by 26% to VND10,376 billion ($410.3 million), according to its quarterly consolidated financial statement.

Total expenses related to sales and management rose by 21.6%, lower than the increase in revenue. Gross profit margin improved from 16.7% to 18.2%.

FPT Retail stated that its FPT Shop chain, which trades mobile phones, laptops and home appliances, returned to profit before tax in Q3, and the chain would be expanded after a trial period.

In Q3, FPT Shop achieved a pre-tax profit, and its average monthly revenue per store reached VND2.1 billion ($83,000), the highest level since the beginning of the year.

In this quarter, FPT Shop tested converting 10 FPT Shop stores to the FPT Shop Dien May (FPT Shop Electronics) model with new home appliances and electronic items and new installation and delivery services. The company plans to open 50 more FPT Shop Electronics stores in Q4.

In the first nine months of this year, FPT Retail recorded consolidated revenue of VND28,657 billion ($1.13 billion), up 24% year-on-year and fulfiling 77% of the year’s plan.

Profit after tax reached VND274 billion ($10.83 million), while it made a loss of VND226 billion in the same period last year.

Its FPT Shop earned VND10,904 billion ($431 million) in nine-month revenue, making up 38% of the company’s total revenue and down 11% year-on-year.

The retailer said that thanks to restructuring the store system and product portfolio and optimizing operations, FPT Shop’s business results have gradually improved quarter over quarter.

Preparing to raise capital for Long Chau pharma chain

In the first nine months, the FPT Long Chau pharma retail chain, part of FPT Retail, recorded a 62% increase in revenue to reach VND18,006 billion ($711.9 million), accounting for 62% of FPT Retail’s total revenue and completing 85% of the year’s plan.

FPT Long Chau continued to expand with 1,849 pharmacies, an increase of 352 outlets compared to the beginning of 2024.

In Q3 alone, the chain opened 143 new pharmacies, the highest quarterly number of new openings in the nine-month period.

In particular, despite continuously opening new stores, the overall operating efficiency of the pharmacy chain was still maintained, with an average monthly revenue per pharmacy of about VND1.2 billion ($47,450), equivalent to the previous quarters of the year.

The FPT Long Chau vaccination center system has been enlarged to 115 centers across 46 provinces and cities. This contributes to helping FPT Long Chau gradually complete a comprehensive healthcare ecosystem.

FPT Retail recently announced that it had completed using all 67.4 million shares in its subsidiary FPT Long Chau Pharmaceutical JSC to contribute capital to establish a new subsidiary named FPT Long Chau Investment Company Limited.

FPT Long Chau Investment Company Limited, wholly owned by FPT Retail, has a charter capital of VND673.65 billion ($26.64 million). Nguyen Bach Diep, chairwoman of FPT Retail, is general director of investment at FPT Long Chau Investment Company Limited.

This is the first step in the process of mobilizing capital to develop the Long Chau pharmacy chain. At the 2024 AGM, Diep revealed that FPT Long Chau plans to raise capital through private offerings to investors, which would make up a maximum 10% stake. Proceeds will be used to expand investment to turn Long Chau into a health ecosystem.

FRT shares closed Thursday at VND173,800 ($6.87) apiece.