FPT Retail aims to reach VND 220 billion of profit in 2020 and plans to expand Long Chau Chain to 220 stores
FPT Retail still expects to account for 30% of the market share of pharmaceutical retail channel through pharmacies in the next 3 to 4 years, in the future, the pharmacy segment will contribute about 40% of the Company’s total revenue at approximately VND 5,000 billion.
On 28 May, FPT Digital Retail Joint Stock Company (FPT Retail) has organized the annual General Meeting of Shareholders of 2020.
According to the report, in 2019, the Company achieved VND 16,634 billion in revenue, up 9% compared to that in 2018. Remarkably, the online sales reached VND 3,899 billion, up 60% compared to that in 2018 and this accounted for 23.4% of the Company’s total revenue. In 2019, the trading of accessories and digital SIMs was a bright spot when achieving a high growth rate, to be specific: the number of accessories and sim cards sold were 5.2 million, representing 29% and 858,000 products, 67%, respectively, compared to 2018. Profit before tax in 2019 reached VND 278 billion, down 36%.
According to the financial report for the first quarter of 2020, FPT Retail has witnessed a slight increase in revenue to VND 4,093 billion. Profit before tax reached VND 47 billion, up VND 61 billion compared that of the fourth quarter of 2019. Long Chau’s turnover reached VND 239 billion, an increase of 20% compared to the fourth quarter of 2019, 2.5 times higher than that of the same period of 2019. Continue focusing on promoting online sales, especially in the period of Covid pandemic, online sales in the first quarter of 2020 were VND 1,107 billion, up 20% compared to the fourth quarter of 2019; accounting for 27% of the total turnover of FPT Retail.
At the end of May 2020, Long Chau chain has officially reached 110 pharmacies, serving tens of millions of visitors in more than 30 provinces and cities nationwide.
Strategic orientation in 2020
Since the beginning of the year, the Covid-19 pandemic has caused many negative effects on all aspects of the economy on a global scale. It can be said that this pandemic is considered a ‘big shock’ to the economy. Up to now, Vietnam has basically managed to control the disease, but the situation in the world is still complicated. According to experts’ forecast, the domestic economy still faces many difficulties and challenges.
Therefore, in 2020, FPT Retail aims to gain VND 15,320 billion in revenue and VND 220 billion in profit before tax.
This year, FPT Retail continues to focus on increasing the revenue of the store system by introducing new products in the form of shop – in – shop to improve the efficiency of sales per store. In addition, FPT Retail will also optimize operating costs of stores by increasing labor productivity and applying new technologies. At the same time, the Company will organize trainings, improve sales skills and customer service style of all employees. Along with investing in human resources, the Company will also invest in equipment for sales purpose, refresh the image of the store and implement attractive and practical incentive programs.
After discovering the secret to success for Long Chau chain, in 2020, FPT Retail plans to expand the Long Chau pharmacy chain to 220 stores and increase its coverage nationwide. According to the survey, FPT Retail considers pharmaceuticals as a potential market to develop in the long term and the Company believes that the growth of the Company will follow the ‘boom’ of this segment in the near future.
Consequently, in the long-term plan, FPT Retail is oriented to develop the pharmaceutical segment in a planned and controlled manner like the operation of the Company’s digital retail system. Accordingly, the Company will focus on building logistics segment, increasing the number of pharmacies, developing personnel with management and professional qualifications to increase operational efficiency.
It is known that the pharmaceutical retail industry is divided into three channels: hospital, clinic and pharmacy channel. FPT Retail still expects to account for 30% of the market share of pharmaceutical retail channel through pharmacies in the next 3 to 4 years, the pharmacy segment will contribute about 40% of the Company’s total revenue at approximately VND 5,000 billion.
The Meeting also approved the profit distribution plan of 2019, 10% of which is paid by cash (VND 1,000/share) and paid in the third quarter of 2020. Regarding the profit distribution plan in 2020, the policy that rate of dividends paid by cash will not exceed 15% (VND 1,500/share) was also approved. In addition, FPT Retail’s shareholders approved the election of additional member of the Board of Management for the term of 2017 – 2022, who is Mr. Nguyen Dac Viet Dung, an independent member of the Board of Management.
According to Cafebiz
Published May 28, 2020