Explaining the reduction of profit margin, the analysts expressed the opinion that this was a short-term consequence, when FPT Retail had to sacrifice part of the profit margin to boost the revenue via F-Friend program and telco subsidy program.
FPT Retail (FRT) has announced the third-quarter financial statement of 2018 with the increase of the revenue by 24% from VND3,004 billion to VND3,726 billion, resulting in a corresponding increase in gross profit to VND495 billion. However, the gross margin in the third quarter of this year is still lower than the level of the same period in 2017, which was nearly 14%, the margin this year only reached 13.3%.
Concerning the cost, the cost of sales and the administration expenses both increased. The financial income decreased while the interest expense increased significantly from VND16 billion to VND23 billion. As a result, the Company achieved the net profit after tax of VND81 billion, up 31% compared to the third quarter of 2018.
In the first nine months, the gross revenue and gross profit of the Company both increased to VND11,577 billion and VND1,481 billion respectively. However, gross profit margin was still adjusted. In the revenue structure, the upward trend in the revenue came from the sales of goods, while the revenue from provision of services decreased compared to the same period.
Explaining the reduction of profit margin n, analysts expressed the opinion that this was a short-term consequence, when FPT Retail had to sacrifice part of the profit margin to boost the revenue via F-Friend program and telco subsidy program. .
Back to FPT Retail’s 9-month income, the net income gained was VND227 billion, up 30% compared to the same period last year, which was VND175 billion.
There are some noticeable points in the Balance sheet: During the period, the Company incurred a short-term investment of VND260 billion. However, the receivables note recorded a decrease while the accounts receivable from customers increased relatively.
Concerning the short-term borrowings, as of 30 September 2018, FPT Retail generated two new borrowings of VND1,021 billion at BIDV and VND62 billion at Vietcombank. In contrast, the Company has liquidated a short-term borrowings of VND70,5 billion at ANZ Bank during the period.
According Tri Tuc – CafeF