FPT Retail targets robust growth after record profit year

FPT Digital Retail JSC (HoSE: FRT), a unit of Vietnam’s FPT Corporation, is targeting profit of VND1.55 trillion ($59.73 million) this year, up 27% from a record set in 2025, with growth expected to continue being driven by its Long Chau pharmacy chain.

It targets consolidated revenue of VND59.5 trillion ($2.29 billion), up 16%, and consolidated pre-tax profit of VND1.55 trillion ($59.73 million), an increase of 27% from 2025, according to a board resolution on 2026 business plan to be submitted to its AGM for approval.

Last year marked a standout performance for FPT Retail, with revenue and profit hitting new records and surpassing the 2021 peak.

Consolidated net revenue rose 27% to VND51.08 trillion ($1.97 billion), while consolidated pre-tax profit surged 131% to VND1.22 trillion ($47.01 million) from 2024. Profit attributable to the parent company’s shareholders reached VND795 billion ($30.63 million), about 2.5 times the prior year’s level.

The performance was largely driven by the Long Chau pharmacy and vaccination chain. Revenue from the network rose 36% to VND34.5 trillion ($1.33 billion), accounting for 68% of FPT Retail’s consolidated sales. Revenue at FPT Shop, the electronics store chain of FPT Retail, climbed 11% to VND16.81 trillion ($647.79 million), with the business returning to profit.

Long Chau to remain growth driver in 2026

Last year also marked a successful fundraising round for Long Chau, strengthening its resources for expansion. In April 2025, FPT Retail said Creador Sdn. Bhd., a private equity firm headquartered in Malaysia, had agreed to acquire a minority stake in Long Chau Investment.

The transaction is being carried out in two phases over one year, targeting a 13% holding through a combination of newly issued shares and existing shares sold by individual shareholders.

Backed by the fresh capital, Long Chau accelerated its expansion last year, opening 474 new pharmacies and 97 vaccination centers, bringing the chain’s total footprint to 2,640 outlets. With a nationwide network and a standardized operating system, Long Chau’s pharmacies and vaccination centers now serve about 33 million customers, roughly one-third of Vietnam’s population.

According to BIDV Securities, the Long Chau pharmacy chain will remain FPT Retail’s core profit engine and main growth driver in 2026. The expectation of a net addition of about 340 stores, taking the total to 2,737 pharmacies, underscores the chain’s expansion capacity and its ability to capture market share as the industry shifts toward higher-quality, authentic products.

This trend is being reinforced by new drug quality inspection regulations and the government’s push to eliminate counterfeit medicines from the market.

At the same time, sustained growth at stores operating for more than 12 months, with average monthly revenue of over VND1.2 billion ($46.243) per store, underscores the chain’s ability to flexibly manage its product mix and the solid absolute contribution from mature outlets.

Separately, the vaccination business has yet to make a significant contribution to Long Chau’s results, but continues to be optimized, with expectations to add about 40 new sites, bringing the total to 263 vaccination centers, each with an estimated payback period of around 12 months.

For FPT Shop, BIDV Securities said FPT Retail is expected to continue streamlining its product mix and lift the proportion of electronics-focused outlets to 65% of total stores by the end of 2026, supporting a meaningful improvement in revenue per store.