Restaurant chain Golden Gate profit hits record high

Golden Gate Trade And Service JSC (Golden Gate), a major developer and operator of full-service restaurants in Vietnam, reported after-tax profit of VND658 billion ($28 million) in 2022, while it lost more than VND430 billion ($18.32 million) in the previous year.

The company's net revenue reached VND6,965 billion ($296.85 million), two times year-on-year, according to its consolidated audited financial statement. Of this, revenue from selling food and beverages were VND6,955 billion ($296.42 million).

In 2022, Golden Gate recorded an increase in sales expenses by VND3,118 billion ($132.89 million), up 52%, while administrative expenses up by more than VND180 billion ($7.67 million) and interest expenses up by more than VND60 billion ($2.56 million).

As of December 31, 2022, Golden Gate's total assets reached VND2,943 billion ($125.43 million), up 23% compared to the beginning of the year, with an inventory of VND811 billion ($34.56 million).

Meanwhile, liabilities were VND1,589 billion ($67.72 million), down VND50 billion compared to the beginning of the year, while long-term debt decreased from VND546 billion ($23.27 million) to nearly VND65 billion ($2.77 million), mainly due to bond issuance decreasing by more than VND490 billion ($20.88 million).

By the end of December 2022, Golden Gate owned 22 brands, nearly 400 restaurants in more than 40 provinces and cities, serving 18 million visitors per year.

In 2022, nearly 33% of the capital contribution of former investor Prosperity Food Concepts and a small part of contributed capital of the two Golden Gate co-founders was transferred to a new group of shareholders including Temasek and SeaTown Private Capital and Periwinkle (Singapore). The total number of shares transferred to the new group of shareholders is 35.95%.

Golden Gate currently manages the largest branded restaurant chain in Vietnam, focusing on the mid-end segment with brands including GoGi, Kichi - Kichi, iSushi, Vuvuzela, Ashima, etc.

At the beginning of March 2023, Golden Gate issued a resolution to terminate the operation of 39 branches in some notable localities like Quang Ninh, Hai Phong, Danang, Vung Tau, and Binh Duong. Most of the branches that have been terminated are located in famous local shopping centers.