FPT Digital Retail JSC, known as FPT Retail, posted VND39 billion ($1.54 million) in consolidated net profit in the first quarter of 2024, marking a return to profitability after four consecutive quarters of losses.
In Q1, FPT Retail, listed on the Ho Chi Minh Stock Exchange as FRT, earned VND89 billion ($3.51 million) in pre-tax profit, reaching 71% of the year’s plan, said its Q1 consolidated financial statements.
The firm generated VND9.04 trillion ($356.7 million) in revenue in Q1, up 17% year-on-year and completing 24% of the year's target.
Its Long Chau pharmacy chain has firmly positioned itself as FRT’s growth driver. The chain brought in VND5.55 trillion ($218.32 million) in revenue, a 68% increase year-on-year and making up 61% of FPT Retail’s revenue.
Meanwhile, FPT Shop, a retail technology subsidiary of FPT Retail, experienced a 21% year-on-year drop in Q1 revenue to VND3.58 trillion ($141.35 million). However, its gross profit saw a 3% year-on-year uptick, driven by the recent shift in FPT Shop’s product structure. Also, FPT Shop halved its Q1 financial costs year-on-year on the back of access to low-interest loans.
As of the end of Q1, FPT Retail boasted 2,381 stores nationwide. Specifically, the Long Chau chain launched an additional 90 pharmacies in Q1, bringing its total to 1,587 stores. Additionally, it opened 41 more vaccination centers during the same period, totaling 51 by the end of March. In contrast, FPT Shop closed 12 outlets, scaling down its network to 743.
This year, FPT Retail targets to open an additional 400 Long Chau drugs shops and 100 vaccination centers. It is expected to shutter 50 unprofitable FPT Shop stores while bolstering online sales within its tech retail arm.
During its 2024 AGM on April 17, FPT Retail unveiled a strategy to build up the Long Chau healthcare platform. To execute this plan, it planned to conduct a private placement, offering no more than 10% of its Long Chau pharmacy chain shares.