Steep profit plunge for Vietnam F&B major Golden Gate

Golden Gate Group JSC, a multi-brand restaurant chain operator in Vietnam, earned a consolidated net profit of VND139.53 billion ($5.62 million) in 2023, down 78.8% year-on-year.

The firm, well known for restaurant brands like Hutong, Kichi-Kichi, and Vuvuzela, recorded revenues of VND6.29 trillion ($253.3 million) last year, down 9.7% year-on-year, it said in audited financial statements released Thursday.

At the end of 2023, Golden Gate had total assets of VND2.83 trillion ($114 million), down 2.4% from a year earlier. Its cash and cash equivalents jumped 53% to VND313 billion.

The firm said its total liabilities reduced 7.14% year-on-year to VND1.48 trillion ($59.5 million) as of end-2023. Of this figure, short-term debts fell 10.3% to VND1.36 trillion.

Its retained earnings, as of end 2023, was VND1.43 trillion ($57.67 million).

For 2023, the firm had targeted a consolidated net profit of VND167.2 billion ($6.7 million) on revenues of VND6.89 trillion, down 75% and 1% year-on-year, respectively.

Established in 2005, Golden Gate now runs casual dining establishments featuring five culinary categories: Hotpot, BBQ, Asian, Western and Cafeteria. It has been invested by Vietnam-focused Mekong Capital, Denmark's MAJ Invest, Standard Chartered Private Equity, and Singaporean sovereign wealth fund Temasek.

It currently owns 23 brands and some 400 restaurants in 40 provinces and cities throughout Vietnam, serving 18 million customers per year.

Last year, Golden Gate acquired an 80% stake in Hanoi-based Sumibi Vietnam JSC, which provides restaurant and mobile catering services. In August 2023, the firm started operating the Universal Tea chain, serving traditional tea and coffee.

Earlier this year, the firm launched Golden Gate Goods and inaugurated its second food factory on the outskirts of Hanoi. The two-hectare facility produces broth, ice cream and pellets.