FPT Retail surpasses year profit target in 6 months

FPT Retail, a digital product retail chain, reported pre-tax profits of VND161 billion ($6.4 million) in H1/2024, surpassing the year's target by 28%.

The after-tax profit was VND109 billion ($4.34 million), according to its consolidated financial statement.

FPT Retail, listed on the Ho Chi Minh Stock Exchange as FRT, recorded consolidated revenues of VND18,281 billion ($728.4 million) in the six-month period, up 22% year-on-year and 49% of the year's plan.

The first half of 2024 also saw FPT Long Chau pharmacy chain, part of FPT retail, post a 67% year-on-year increase in revenue to VND11,521 billion ($459 million), accounting for 63% of FPT Retail's total revenue.

The chain maintained operational efficiency with average revenues of about VND1.2 billion ($47,810) per pharmacy per month, despite opening numerous stores in new locations.

In the technology and household goods segment, FPT Shop, also part of FPT Retail, generated VND6,923 billion (275.84 million) in revenue, accounting for 37% of the company's total H1 revenues.

As of H1, FPT Retail operated a total of 2,435 stores nationwide. This included 1,706 FPT Long Chau pharmacies, an increase of 209 from the start of 2024. After system optimization, FPT Shop had 642 outlets nationwide.

In Q2/2024, it earned revenues of VND9,240 billion ($368.2 million), a 29% year-on-year increase. Year-on-year, Q2 interest expenses decreased from VND76 billion ($3 million) to VND55 billion ($2.19 million), selling expenses rose 41% to VND 1,362 billion ($54.2 million), and management expenses increased 25% to VND320 billion ($12.74 million).

FPT Shop in Q2 completed system optimization by closing approximately 100 underperforming stores, with all related closure costs recorded in the quarter.

Despite this, Q2 revenues decreased by only 7% compared to the same period last year, with average monthly revenue per store reaching VND1.6 billion ($63,750).

The company reported post-tax profit of VND48 billion ($1.9 million), a significant turnaround from a loss of VND215 billion ($8.56 million) in Q2/2023.