Major Vietnamese retail chain FPT Retail reports $12mn loss, first since listing
Major Vietnamese retail chain FPT Retail reports $12mn loss, first since listing
FPT Retail, a retail chain under Vietnamese tech giant FPT, incurred a pre-tax loss of VND294 billion (US$12 million) last year, its first loss since it listed shares on the Ho Chi Minh City Stock Exchange in 2018, according to the electronics retailer’s 2023 financial report.
An FPT Shop employee introduces a laptop to a customer in Ho Chi Minh City. Photo: Duc Thien / Tuoi Tre |
FPT Retail recorded consolidated revenue of VND31.85 trillion ($1.3 billion) last year, inching up six percent from 2022.
In 2022, it yielded a pre-tax profit of VND485 billion ($19.8 million).
FPT Retail incurred a loss of nearly VND200 billion ($8.2 million) in the second quarter of last year.
However, it rebounded in the following quarter before experiencing another loss of VND97 billion ($4 million) in the fourth quarter.
The firm closed 31 FPT Shop stores, which sell phones, laptops, and electronic products, in 2023, reducing the number of these outlets nationwide to 755.
FPT Shop’s Q4 revenue fell 27 percent in the last quarter of 2023, mainly due to the dropping demand for iPhone 15 models.
Meanwhile, FPT Long Chau pharmacy chain remained the key revenue earner of FPT Retail in the period with a growth rate of some 60 percent.
FPT Retail opened 560 new FPT Long Chau drugstores last year, raising the total number to 1,497.
The revenue of each FPT Long Chau pharmacy reached VND1.1 billion ($44,932) per month on average.
As the market of phones and electronic products is gloomy, FPT Retail is focusing on investing in the FPT Long Chau pharmacy chain.
The chain contributed half of FPT Retail’s 2023 revenue, equal to the share of the FPT Shop chain.
However, the FPT Long Chau pharmacy chain is expanding its network, so its contribution to FPT Retail’s profit remained modest last year.
