FPT Retail to open 400 Long Chau pharmacies, 100 vaccination centers in 2024

FPT Retail has targeted pre-tax profits of VND125 billion ($5 million) this year, overturning last year’s loss of VND294 billion.

Towards this, the subsidiary of tech giant FPT Corporation plans to open 400 new Long Chau pharmacies and 100 vaccine centers.

According to documents to be submitted to shareholders at the company’s upcoming annual general meeting (AGM), FPT Retail, listed on the Ho Chi Minh Stock Exchange (HoSE) as FRT, targets revenues of VND37.3 trillion ($1.5 billion), up 17% year-on-year.

Of this, revenue from the information and communication technology (ICT) segment is expected to stay flat while that of the pharmaceutical segment would see double-digit growth.

Amid numerous risks and uncertain factors in the market, and slower recovery in demand for ICT products, the company closed a number of FPTShop stores in 2023 and is considering shutting down other ineffective outlets this year, said chairwoman Nguyen Bach Diep.

Instead, it will add more products and services to the FPTShop chain including home appliances, televisions and air conditioners; develop MVNO (mobile virtual network operator) services after selling FPT-branded sim cards; and promote online sales channels, she added.

With the pharmaceutical segment, which provides essential products less affected by the negative impacts of the economy and has great growth potential, FPT Retail plans to expand the Long Chau chain to 1,900 outlets by the end of this year. It also aims to maintain Long Chau’s position as the No. 1 pharmacy brand, especially for prescription drugs.

Diep said Long Chau targets provision of comprehensive healthcare for customers, starting with a chain of vaccination centers. The company opened a few centers on a trial basis in 2023 and aims to inaugurate 100 new ones this year.

In 2023, due to the impact of declining demand for ICT products and focus on expanding the Long Chau chain, the company recorded a pre-tax loss of VND294 billion ($11.9 million).

Therefore, the board of directors has decided not to pay dividends in 2023 as well as 2024 in order to expand the Long Chau chain and fund other projects, Diep said

FRT closed Tuesday’s session at VND147,900 ($6) per share.