FRT financial statements🔴

30/07/2023 09:34 GMT+7
Retail 'big man': People are positive thanks to🌝 fish meat, people who open pharmacies are suffering🥲

In the context of the difficult technology market,
The Gioi Di Dong recorded a positive signal of Bach Hoa Xanh chain,
FPT Retail massively opened a new Long Chau pharmacy;
while Digiworld grew from importing beverages, home appliances...

While the retail chain of electronics and mobile phones decreased in revenue, Bach Hoa Xanh is expected by MWG to continue to improve sales strongly in July

Massively opening new retail, price competition pressure

The Q2-2023 (bctc hop nhat) consolidated financial report of  FPT Retail  (FRT) shows that this technology retail  business turned a profit into a big loss🥲despite (bat chap) the growth in revenue.

During the period, FRT had net sales of VND 7,170 billion, up 15% yoy.
🔴A series of expenses skyrocketed (tang vot), making the business picture worse, such as:
🔴General and administrative expenses (increased by 170%);
🔴selling expenses (up 24%),
🔴interest (up 50%)...
As a result, FRT lost 214 billion dong, while the same period gained 46.7 billion dong.

In the first 6 months, FPT Retail's "net revenue" reached VND 14,923 billion, up 7%.
Profit after tax was 🔴negative nearly 224 billion dong.

The reason explained by FRT leaders is that the chain pharmacy Long Chau opened 565 new stores compared to the end of the second quarter of last year.
Despite contributing significantly to consolidated revenue,
it is still in the investment stage,
so profits have not🥲improved much.

In its (bctc rieng) separate financial report with a loss of 🥲251 billion dong,
FPT Retail said that its revenue in the second quarter 🔴decreased by 797 billion dong because the demand for goods continued to decline 🥲sharply when consumers tightened 🥲spending, especially with high value items, not essential (thiet yeu).

Another important reason mentioned by FPT Retail is that the level of competition in the e-retail industry continues to be strong, competing for "price" to gain🥲market share.

At the annual general meeting of shareholders in 2023, the company's leaders said that with the FPT Shop chain,
there will be many sales policies, promotions and price subsidies (tro gia).
Therefore, gross profit margin is expected to be lower than previous years.

To improve gross profit, the company revealed (tiet lo) that it will sell more household goods in the existing FPT Shop chain.
By the end of June 2023, FPT Shop has 800 stores, of which 585 are selling household appliances, an increase of 285 compared to the beginning of the year.

🤔Retail flourishes (khoi sac), purchasing power has improved?

The Vietnamese retail market will leapfrog (nhay vot), catching up with new trends

🌝‘Credible’ (duoc tin nhiem) is an important factor in the pharmaceutical retail market

Even selling household appliances, the accumulated (luy ke) revenue of FPT Shop in the first half of this year still 🔴decreased by 19% over the same period, reaching VND 8,118 billion.

✈️With the Long Chau chain, in the first 6 months, 306 new pharmacies have been opened.
The average revenue reached more than 1 billion VND/store/month, bringing the total revenue to 6,899 billion VND, up 72%.
🏞Currently, this chain has 1,243 pharmacies.