Major retailers post strong growth as consumer demand rebounds

Major retailers post strong growth as consumer demand rebounds

Vietnam’s leading retailers reported strong first-quarter earnings growth as consumer demand gradually recovered and modern retail channels gained momentum, though analysts warn inflationary pressures could temper spending ahead.

Vietnam's total retail sales of goods in April continued to record double-digit growth at approximately $25.85 billion, up 12.1 per cent compared to the same period in 2025.

At Mobile World Investment Corporation, profit growth significantly outpaced revenue growth in Q1

Alongside the ongoing transition towards modern retail channels, the recovery trend was quickly reflected in the first-quarter earnings of many major retailers, spanning jewellery, technology products, food retail and pharmaceuticals.

Accordingly, the Q1 results at Phu Nhuan Jewelry JSC (PNJ) reached a record high.

The company’s consolidated net revenue exceeded $689.8 million, up 79 per cent on-year, while after-tax profit reached nearly $58.7 million, an increase of 117 per cent.

In 2026, PNJ targets after-tax profit of nearly $136.4 million, up 21 per cent. If achieved, this would mark the highest profit level in the company’s history.

Speaking to shareholders about the company’s ambitious business plan at the 2026 AGM held on April 22, Phan Quoc Cong, CEO of PNJ, said tighter gold market management policies and stronger compliance requirements were accelerating industry consolidation, creating advantages for businesses with transparent and well-structured operations.

“At the same time, raw material supply has gradually improved through proactive procurement and recycling solutions, helping PNJ maintain stable operations and deliver positive results from late 2025 through the first quarter of 2026,” he said.

In the ICT and pharmaceutical retail segments, FPT Retail continued to maintain growth across both the FPT Shop and Long Chau pharmacy chains.

In Q1/2026, FPT Retail posted revenue of more than $606.3 million, up 29.2 per cent on-year. According to analysts at MB Securities, the company’s gross profit margin improved significantly thanks to contributions from the Long Chau pharmacy chain.

Meanwhile, FPT Shop has also passed its most difficult period, with average revenue per store increasing by around 24 per cent, supported by both higher selling prices and replacement demand for electronic devices.

Following the same trend, Digiworld reported Q1 net revenue of more than $340 million, up 54 per cent. Its after-tax profit surged 89 per cent to more than $8 million.

Growth momentum came from most of the company’s core business segments. Notably, laptops, tablets and office equipment all recorded roughly twofold growth thanks to rising demand for technology infrastructure and AI investment.

In addition, the home appliance segment maintained 80 per cent growth, while consumer goods also posted double-digit gains.

At Mobile World Investment Corporation (MWG), profit growth also significantly outpaced revenue growth. Net revenue reached $1.86 billion, up 28.6 per cent, while after-tax profit climbed to $110.3 million, an increase of more than 78 per cent.

The strong performance was driven by robust growth in mobile phone and consumer electronics sales. At the same time, the Bach Hoa Xanh grocery retail chain continued improving operating efficiency at existing stores while expanding its network.

In Q1, MWG opened an additional 280 stores nationwide. Bach Hoa Xanh generated around $524 million in Q1 revenue, up more than 19 per cent, with average revenue reaching approximately $64,000 per store per month.

WinCommerce – the operator of the WinMart and WinMart+ chains under retail major Masan Group – also reported positive business results.

According to company executives, the company’s Q1 revenue rose 29 per cent, while after-tax profit reached $8.2 million, up 3.5 times from the same period last year.

WinCommerce is currently maintaining a pace of opening around 300-400 new stores each quarter and targets full-year revenue of between $1.8 billion and $1.88 billion.

Notably, 100 per cent of newly opened stores achieved earnings before interest, taxes, depreciation, and amortisation breakeven within their first quarter of operation.

Although retail companies posted improving business results, SSI Research noted that domestic consumption remains in a phase of stable recovery rather than rapid acceleration.

Household consumption demand is recovering, but has yet to break out strongly due to higher living costs and limited improvement in real income growth.

Analysts at SSI Research forecast that growth momentum among consumer-focused companies will gradually slow in the upcoming quarters due to a higher comparison base, rising input costs and the impact of inflation on consumers’ purchasing power.

According to the prime minister’s Decision No.2326/QD-TTg, one of the guiding principles is to develop the retail market because of diversifying retail formats, encouraging modern retail distribution models and business strategies, and broadening the range of market participants.

The strategy emphasises encouraging and fostering the development of large domestic distribution enterprises with modern distribution systems to serve as core market leaders, while also boosting the growth of private retail conglomerates.

At the same time, attention will be given to supporting small and medium-sized enterprises, creating better conditions for household businesses and cooperatives to participate in the market.

VIR