FPT Retail records losses for third consecutive quarter

FPT Retail, a subsidiary of tech giant FPT Corporation, reported a net loss of VND21 billion ($854,800) in Q3/2023, marking its third consecutive quarter of losses.

However, the figure was much less than the Q2 loss of VND219 billion ($8.9 million), according to its financial statements.

Its Q3 revenue hit VND8.24 trillion ($335.4 million), up 6% year-on-year.

The Q3 revenue of its FPT Shop chain, which sells phones, laptops and electronic items, reached VND4.1 trillion ($166.89 million), up 14% compared to Q2, but down 21% year-on-year.

Meanwhile, thanks to its expansion strategy, its another arm, the FPT Long Chau pharmacy chain, recorded revenue of VND4.13 trillion ($168.1 million), an increase of 64% over the same period last year. In Q3, the chain surpassed the 2023 target with 447 pharmacies opened.

Compared to the end of Q3/2022, the number of FPT Long Chau stores increased by 584. The chain’s operating efficiency has been maintained, with average revenue of nearly VND1.1 billion ($44,770) per pharmacy per month.

However, FPT Retail’s sales and management costs expanded 19% and 41% to VND1.03 trillion ($41.9 million) and VND297 billion ($12 million), respectively.

In the first nine months of this year, FPT Retail’s revenue reached VND23.16 trillion ($942.4 million), a year-on-year increase of 7%; while its net loss was VND245 billion ($9.97 million), compared to a profit of VND296 billion in the same period last year.

The FPT Shop chain's revenue hit VND12.22 trillion ($497.25 million), down 20% year-on-year, while the FPT Long Chau chain's revenue reached VND11.09 trillion ($451.27 million), up 69%.

As of end-September, the FPT Shop chain owned 791 stores while FPT Long Chau raised its number of pharmacies to 1,384.

Since the end of 2021, FPT Shop has added household products to its existing range at 724 stores.

FPT Retail’s total assets as of end-Q3 reached VND11.72 trillion ($476.9 million), an increase of nearly VND1.2 trillion ($48.83 million) compared to the beginning of the year.

Of which, inventories accounted for VND7.29 trillion ($296.28 million), up VND806 billion from the year beginning, while cash and deposits decreased from VND1.86 trillion ($75.67 million) to VND1.58 trillion.

The company maintained short-term debts of VND5.65 trillion ($229.77 million), up VND293 billion from the year beginning.

It has targeted revenue of VND34 trillion ($1.45 billion) and pre-tax profit of nearly VND240 billion ($10.2 million) in 2023, up 13% and down 51% year-on-year, respectively.

FPT Retail is listed on the Ho Chi Minh Stock Exchange as FRT. The stock closed the Tuesday session at VND87,000 ($3.54).