Vietnam retail major FPT Retail’s accumulated profit jumps by over $36 mln in H1

Vietnamese retail major FPT Retail’s undistributed post-tax profit rose nearly 2.7 times to VND1.5 trillion ($57.16 million) at the end of June, up VND955 billion ($36.39 million) from the beginning of this year.

In H1/2025, the company’s net revenue climbed 25.8% to VND23.06 trillion ($878.96 million), while post-tax profit jumped 3.3 times to VND370 billion ($14.1 million), its report shows.

The Long Chau pharmacy chain remained the primary revenue contributor, generating VND16.08 trillion ($613.09 million), up 40% from a year earlier and accounting for 70% of FPT Retail’s consolidated revenue.

FPT Retail continued to accelerate its expansion, adding 248 new pharmacies to reach a total of 2,191 outlets in the six months. Average monthly revenue per store held steady at around VND1.2 billion ($45,740).

FPT Long Chau also opened 52 additional vaccination centers in H1, bringing the total to 178 nationwide.

FPT Shop chain, which trades mobile phones, laptops, and home appliances, posted H1 revenue of VND7.12 trillion ($271.39 million), up 3% year-on-year, driven by new product categories such as electronics and services.

Average monthly revenue per FPT Shop store rose 17% from a year earlier to VND1.9 billion ($72,441). However, the chain fulfilled only 45% of its full-year revenue target. Management expects stronger consumer demand in the second half to help accelerate growth.

Meanwhile, the number of FPT Shop outlets continued to decline, falling by nine to 625 at the end of June.

In Q2 alone, FPT Retail reported consolidated revenue of VND11.39 trillion ($434.17 million), up 23% from a year earlier, while post-tax profit surged 3.2 times to VND157 billion ($5.98 million).

The main growth driver remained the Long Chau pharmacy chain, while the FPT Shop chain posted a loss of VND27.2 billion ($1.04 million) - an improvement from the VND61.7 billion ($2.35 million) loss recorded in the same period last year.

In addition to post-tax profit generated from core operations in Q2, the company also booked an extra VND668 billion ($25.47 million) during the quarter from other equity-related gains.

In April, FPT Retail announced the completion of a capital-raising deal for its subsidiary FPT Long Chau Investment JSC, the operator of the Long Chau pharmacy and vaccination center chains.

Specifically, Creador Sdn. Bhd., a private equity firm headquartered in Malaysia, acquired a 13% stake in FPT Long Chau Investment JSC.

Creador made its investment in two phases over the course of one year, acquiring both newly issued shares and existing shares from individual shareholders.

FPT Retail’s total assets rose nearly 16% from the start of the year to VND18.33 trillion ($698.99 million) at the end of Q2. Inventory fell 5% to VND9.68 trillion ($369.12 million), while short-term bank deposits surged from VND986 billion to VND3.6 trillion ($137.28 million), with interest rates rising from 4.5% to 6.3% annually.

On the liabilities side, FPT Retail’s short-term borrowings rose from VND8.8 trillion to VND9.31 trillion ($354.98 million), pushing its debt-to-equity ratio to 2.7 times.

FPT Retail has two subsidiaries - FPT Long Chau Investment JSC and Viet Han Friendship JSC. As of end-Q2, the company maintained a 99.98% stake in Viet Han Friendship but saw its ownership in FPT Long Chau Investment fall from 80.74% to 78.59%.

The report shows that FPT Retail’s capital contribution to FPT Long Chau Investment remained unchanged at VND673.65 billion ($25.68 million), indicating no divestment. The drop in ownership resulted from Long Chau issuing new shares to its foreign partner.

On the Ho Chi Minh Stock Exchange, FPT Retail’s FRT shares closed Tuesday at VND151,500 ($5.78) apiece.