Vincom Retail targets $199 mln profit in 2023

Vietnam's top shopping mall operator Vincom Retail is targeting net revenue of VND10.35 trillion ($440.13 million) in 2023, up 41% year-on-year, and post-tax profit of VND4.68 trillion ($199 million), up 69%.

The company's business plan is based on the management's expectation that the outlook for the economy as well as the business environment this year will improve from 2022, according to documents to be submitted at its annual general meeting of shareholders on April 26.

In the scenario that economic development drivers and the business environment are better than expected, the company's board of directors has set a net revenue target and after-tax profit plan of VND11.5 trillion ($489.04 million) and VND5.2 trillion ($221.13 million), up 56% and 87% year-on-year, respectively.

In addition, the subsidiary of Vietnam’s biggest private conglomerate Vingroup, listed on the Ho Chi Minh Stock Exchange as VRE, will also submit plans at the meeting on how to use its accumulated after-tax profit from 2022.

According to KPMG audited data, VRE's accumulated undistributed post-tax profit as of December 31, 2022 was VND12.07 trillion ($513.06 million) which the board of directors will recommend be used for production and business activities.

The last time the company paid a dividend was in 2018 when the payment per share was VND1,050 (4.5 U.S. cents) plus bonus shares at a rate of 1,000: 225.

This year, Vincom Retail plans to open two new shopping centers, including Vincom Mega Mall Grand Park in Ho Chi Minh City and Vincom Plaza Ha Giang in the northern mountainous province of Ha Giang, with a total retail floor area of 55,000 m2, bringing the total number of commercial centers to 85 in 45 out of the 63 provinces and cities nationwide.

VRE posted net revenue of VND7.31 trillion ($310.8 million) and after-tax profit of VND2.74 trillion ($116.3 million) in 2022, up 24% and 108% year-on-year, according to its consolidated financial report.

At Tuesday's close, VRE share price hit VND28,500 ($1.21).