FPT Retail’s General Meeting of Shareholders: The ambition with the field of pharmacy, the target is to increase the number of Long Chau stores double in 2018 and in the next year, increase in 10 times.
After joining 1 year, until the beginning of 2018, the number of Long Chau stores was 10 units, this year, they expect to increase this number to 30, soon towards the target of 400 stores.
In 3 years time, the field of pharmacy will contribute 30-40% in the revenue
In 2017, many giant retailers such as Mobile World (MWG), Digiworld (DGW) và FPT Retail started to “engage” in the field of pharmacy with fast growth. However until now, when MWG said they do not hurry to deploy but they are only concentrating on Green Grocery, or DGW still have not had any rapid moves, FPT Retail has been revealing its big ambition in this field.
At the General Meeting of Shareholder at March 28, 2018, Mrs. Nguyen Bach Diep, the General Director at FPT Retail said that after 1 year joining, Long Chau chain’s drugstores have been doubled. Specifically, at the time when the Company started its investment in Long Chau, the chain of drugstores had only 5 stores, and after 1 year learning and developing the software system as well as taking over the supplies, FPT Retail had opened 5 more drugstores. Therefore, until the beginning of this year, Long Chau has reached 10 drugstores. It did not stop there, in 2018, the Company is planning to open 20 additional drugstores in HCMC area, and the number in the coming time is 100 stores/year.
Mrs. Diep also shared that the reason for them to select Long Chau chain when engaging in the field of pharmacy was that according to her observation, FPT Retail recognized that the number of its stores were more than others. Not to mention, the number of drugs in Long Chau was 6-7 times higher than that in others with the affordable price, therefore, there will be very few people take the Long Chau’s prescription to buy drugs in any other nearby drugstores. That led to the high revenue of Long Chau, and with 40% of the revenue from cosmetics, functional foods and medical equipment, it had helped the profitability of this chain outstanding compared to the general situation.
According to the plan, the revenue of the field of pharmacy will be calculated in the total revenue of FPT Retail since 2019, specifically, in 3 years, this field will contribute 30-40% in the Company’s total revenue.
FPT expects to make FPT Retail listed in HoSE before April 30, 2018
At the General Meeting, FPT Retail also submitted the business plan in 2018 with 16,200 billion VND in revenue – up 22% and 377 billion VND in net profit – up 30% compared to the result in 2017. With the above target, FPT Retail expects to divide in cash dividends of 20% and divide the bonus share with the ratio of 70%. With the current charter capital of 400 billion VND, it is predicted that after dividing the shares, the charter capital of the Company will increase to 680 billion VND.
According to the statistics, the business result of the first quarter of FPT Retail is still growing compared to the same period last year, to be specific: The revenue has increased 19% and the profit has increase 32%.
Answering this, Mrs. Diep share: “The profit margin is improved due to the Company’s cost optimization, specifically: to modify the working shifts of the employees during daytime, increase the shifts in rush hours and decrease when the customers are not crowded. Together with that, marketing costs are also being well managed by the Company”.
Additionally, Mrs. Diep said that her shares concerning the above situation were not inclusive of the revenue from the sales of the projects. If in total, the revenue in the first quarter of 2018 of the Company increased, the profit has been up 32% compared to the same period.
It is known that 2017 was the year that had many tremendous changes of FPT Retail concerning the ownership structures as well as the business results. The revenue of 2017 reached 13,147 billion VND, up 21% compared to 2016, the net revenue was up 40% to 290 billion VND. Besides that, in 2017, FPT Retail was massively deployed with the fact that FPT Retail reduced the ownership rate from 85% to 47%, bringing FPT Retail from its subsidiary to FPT’s associate company. The top two investment funds in Vietnam are Dragon Capital and VinaCapital which owns 20% and 15% respectively of FPT’s stocks.
Other noticeable news is that, FPT expects to make FPT Retail listed on HoSE before April 30, 2018 and the listing procedures have been submitted to HoSE. Regarding questions of the listing price of the shareholders, Mrs. Diep said that they could not public the listing price until that moment without the approval from HoSE.
FPT Retail also pushes the Apple Store when the retail market is saturated
Agreeing with the information that the mobile phone retail market has been saturated, Mrs. Diep said that that is the reason why along with three strategies to consolidate the existing retail business, FPT Retail’s new move is to extend the store chain of Apple Store. Specifically, the company is planning to open about 100 stores per year, expecting the number of stores will reach from 650 to 700 stores by 2020.
Currently, Apple Store is one of the chains belonging to F.Studio of FPT Retail. In particular, F.Studio is a store chain which is Apple’s official authorized retail chain in Vietnam, specializing in selling genuine Apple products, including the store at level 1 which is APR, level 2 which is AAR and level 3, CES. Until the beginning of this year, FPT Retail has reached 12 F.Studio stores.
In depth analysis of this strategy, the Company said Vietnam is the third market in Apple’s distribution channel, behind Thailand and Singapore. At the same time, with the growing market of Apple in Vietnam, while the volume of mobile purchases accounts for about 50% of the market, FPT Retail expects to attract the majority of customers concerning the purchase of genuine products in the future.
Until present, one of the competitive advantages of FPT Retail is to understand Apple and to meet its strict requirements of it (accounting for approximately 90% the total revenue of the mobile phone industry in the world). Therefore, with the two foreign companies, Gel and Thakral Brothers, FPT Retail has been selected by Apple to distribute the products.
In fact, this is not new to FPT Retail when in a meeting with the investors before that, the General Director has said: “If Mobile World (MWG) expands its business based on existing retail management by opening Green Grocery and Green Machine, FPT Retail is not an exception. And the Company has chosen Apple Store based on the strategy to continue exploiting Vietnamese market of Apple. Despite the low margins at the moment compared to other products, the high sales per product along with the accompanying product development strategy, the business in Apple products still have great potential growth”.
According to Cafe F