FPT Retail: Opening new 220 Long Chau pharmacies, the turnover of pharmaceutical segment is anticipated to soon reach VND 5,000 billion
FPT Retail expects to expand Long Chau pharmacy chain to 220 stores in 2020, the pharmaceutical segment is anticipated to contribute approximately VND 5,000 billion, accounting for 40% of the total turnover in the next 3 to 4 years.
The pharmaceutical segment will contribute about 40% to FRT’s total turnover at an expected amount of VND 5,000 billion in the next 3 to 4 years.
On 28 May afternoon, at FPT Tan Thuan Towel (District 7, HCMC), FPT Digital Retail Joint Stock Company (FRT) has held the Annual Meeting of Shareholders of 2020. The Meeting has approved on fundamental targets and be ready to conquer new milestones.
According to the report of the Company’s Board of Directors, in 2019, the Company achieved VND 16,634 billion of revenue, up 9% compared to that in 2018. Remarkably, the online revenue reached VND 3,899 billion, an increase of 60% compared to that in 2018, accounting for 23.4% of the Company’s total revenue, profit before tax in 2019 reached VND 278 billion, down 36%.
In the first months of 2020, the Covid-19 epidemic was widespread, having a strong and multidimensional impact on economic activities on a global scale. However, FPT Retail quickly adapted, sought opportunities in challenges and obtained some positive results in the first quarter.
Specifically, the revenue reached VND 4,093 billion, profit before tax reached VND 47 billion, increasing VND 61 billion compared to that in the fourth quarter of 2019. Long Chau reached VND 239 billion of turnover, up 20% compared to that in the fourth quarter of 2019, 2.5 times higher than that compared the same period in 2019.
Therefore, in 2020, FPT Retail expects to achieve VND 15,320 billion of revenue and VND 220 billion of profit before tax. In the circumstance of facing difficulties and recovering the business after the Covid-19 epidemic at the same time, such target has been carefully planned, balanced and calculated by the Company.
The major goal of FPT Retail in 2020 is to promote the pharmaceutical business. After discovering the secret to success for Long Chau chain, in 2020, FPT Retail plans to expand Long Chau pharmacy chain to 220 stores and increase its coverage nationwide.
The pharmaceutical retail industry is divided into three channels, including hospital, clinic and pharmacy channel. Therefore, FPT Retail 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.
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.
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.
The Company will focus on building logistics segment, increasing the number of pharmacies, developing personnel with management and professional qualifications to increase operational efficiency.
For the pharmaceutical industry, according to the World Bank, the aging population in Vietnam is growing very quickly. When the population is aging, the expenditure for health care is also increased. As a result, the pharmaceutical market in Vietnam is considered quite attractive to investors.
According to BMI, a market research firm, sales of this market will increase from USD 7.7 billion in 2021 to USD 16.1 billion in 2026. The compound growth rate will reach 11%. In addition, the market research firm Ken Research also forecasts that the sales of the pharmaceutical market in Vietnam will witness strong growth in the period from 2020 to 2022, specifically from USD 7.6 billion to USD 10.1 billion.
According to Hai Yen, Bao Dau tu
Published May 28, 2020