FPT Retail targets 71% pre-tax profit hike in 2025 on demand recovery

FPT Digital Retail JSC, known as FPT Retail, aims for a 71% year-on-year increase in pre-tax profit this year, driven by expectations of a demand recovery.

The company, listed on the Ho Chi Minh Stock Exchange as FRT, set a record pre-tax profit target of VND900 billion ($35.23 million) for 2025, according to its plan, which is expected to be presented at its AGM on April 25.

The highest pre-tax profit FRT has achieved to date was VND554 billion ($21.69 million) in 2021, when the information and communications technology (ICT) segment experienced a boom in demand for smartphones and laptops for hybrid work and online learning during the Covid-19 pandemic.

FPT Retail also aims to generate VND48.1 trillion ($1.88 billion) in consolidated revenue this year, up 20% from 2023. Last year, FPT Retail booked VND40.1 trillion ($1.57 billion) in consolidated revenue, up 26% year-on-year.

It recorded VND527 billion ($20.62 million) in pre-tax profit, a significant turnaround from a loss of VND294 billion ($11.5 million) in 2023.

Buoyed by these strong results, FRT shares have doubled in value, reaching VND200,000 ($7.83) per share within a year from early 2024.

FPR Retail is expected to have a positive outlook this year across both business segments, ACBS Securities said.

Its digital retail chain FPT Shop is expected to perform well, driven by improved consumer purchasing power, growing demand for phones with NFC integration, and the transition from 2G to 4G/5G devices.

Meanwhile, its pharmacy chain, Long Chau, continues to expand and remains the company’s primary growth driver. ACBS anticipates that Long Chau’s gross profit margin will rise in 2025, though not significantly, as FPT Retail continues its affordable pricing strategy to attract more customers.

FRT shares closed Wednesday at VND180,500 ($7.07) each.