Continuously expanding FPT Long Chau pharmacy chain
Recently, FPT Long Chau announced that it has officially reached the milestone of 1.600 pharmacies by December 12, becoming the pharmaceutical retail chain with the largest number of pharmacies in Vietnam. Long Chau Pharmaceutical Joint Stock Company is the owner of the FPT Long Chau pharmacy chain, a subsidiary of FPT Digital Retail Joint Stock Company (stock code: FRT).
This is quite an impressive number, realizing the plan to develop the FPT Long Chau pharmacy chain that was confirmed by FPT Retail Chairman of the Board of Directors - Nguyen Bach Diep in early 2023. That is, in 2023 the business will focus on efforts for the FPT Long Chau pharmacy chain, with the goal of opening 400 new stores, increasing the number of stores in the entire chain to 1.400 to 1.500.
FPT Retail's 2023 Annual General Meeting of Shareholders.
Accordingly, a quite bright "prospect" is reported when according to the 2023 plan, FPT Retail expects the FPT Long Chau pharmacy chain to bring in 14.000 billion VND. Continuously pushing the number of Long Chau stores to surpass An Khang and Pharmacity has not actually brought FPT Retail the expected results.
Loss for 2 consecutive quarters, liabilities 5,5 times greater than equity
In the third quarter of 3, FPT Retail recorded a net revenue increase of 2023% over the same period to VND 6,8 billion. However, financial revenue decreased by more than half to 8.236 billion VND while operating costs increased sharply to nearly 21,3 billion VND, resulting in net profit decreasing by 1.400% over the same period, down to just 98,6 billion VND. ,1,4 billion.
As a result, FPT Retail had a net loss of 13 billion VND while the same period still had a profit of 85,3 billion VND. Loss after tax belonging to shareholders of the parent company is 21,1 billion. This is FRT's second consecutive quarter of loss after a record loss of 2 billion VND in the second quarter. Previously, in the first quarter of the year, this business also had a net profit of just over 215 billion VND.
Accumulated for 9 months, FPT Retail recorded revenue of 23.160 billion VND, an increase of 6,7% over the same period. However, sales and business management costs both increased, causing the company to move from a profit of more than 300 billion VND in the same period to a net loss of nearly 226 billion VND in the first 9 months of the year.
In 2023, FPT Retail aims to achieve 34.000 billion VND in consolidated revenue and 192 billion in profit after tax. With results achieved after 3/4 of the way, this business is still far from its profit target and will likely fail the 2023 plan if there is no breakthrough in the fourth quarter.
As of September 30, FPT Retail's total assets reached 9 billion VND, an increase of more than 11.720 billion VND compared to the beginning of the year. Of which, more than 1.200% is inventory with an ending value of nearly VND 62 billion. The amount of cash and short-term deposits is at 7.300 billion VND, down about 1.580 billion VND compared to the beginning of the year.
Notably, this enterprise's liabilities at the end of the third quarter increased by nearly 3 billion VND compared to the beginning of the year, thereby exceeding 600 billion VND, 9.900 times higher than equity. Of which, short-term financial debt accounts for 5,5% with an ending balance of 57 billion VND, an increase of nearly 5.650 billion compared to the beginning of the year.
