This May, Long Chau pharmacy chain, under FPT Retail, has officially reached the milestone of 100 pharmacies over 30 provinces and cities.
Long Chau pharmacy chain has reached 100 stores over 30 provinces and cities.
After two years being taken over by FPT Retail, Long Chau system has officially reached 100 stores, serving millions of customers in more than 30 provinces and cities across the country. The 100th store has been put into operation, which marks an important milestone in the development of Long Chau system.
It is known that Long Chau chain currently sells prescription and over-the-counter medicines, functional foods, cosmetic pharmaceuticals and health care products. At the end of the first quarter of 2020, Long Chau was considered the bright spot in FPT Retail’s business pictures with the turnover reaching VND 239 billion, up 20% compared to the fourth quarter of 2019, 2.5 times higher than that in the same period in 2019.
Until now, Long Chau has decided on 40 locations to open new stores in the second quarter of 2020. It is expected that Long Chau will have 200 stores by the end of 2020.
FPT Retail’s strategy is to increase the coverage of Long Chau pharmacies nationwide, representing about 30% of the market share of pharmaceutical channels through pharmacies in the next 2 to 3 years.
According to Anh Duong, Cafebiz.
Published May 18, 2020
FPT Digital Retail Joint Stock Company (FRT) announced that Long Chau pharmacy chain has officially reached 100 stores across 30 provinces and cities nationwide in this May.
“The 100th pharmacy has been put in operation, which marks an important milestone in the development of Long Chau system,” emphasized by FRT in the latest press release.
The pace of opening new stores in the past month is quite rapid compared to the number of 83 stores in 19 provinces and cities by the end of the first quarter of 2020. Besides offline sales, Long Chau system also promotes online sales with home delivery service within 60 minutes.
When the first quarter of 2020 ends, Long Chau is considered a bright spot in the business picture of FPT Retail with the turnover reaching VND 239 billion, 2.5 times higher than that compared the same period in 2019. After two years being taken over by FRT, the revenue of this chain has accounted for nearly 6% of the total revenue, doubling the contribution at 3% of FRT’s total revenue in 2019.
The representative of FRT also said that currently Long Chau has decided on 40 locations to open new store in the second quarter of 2020. Long Chau has set the target of reaching 200 stores by the end of this year.
According to FRT’s estimation, there are more than 30,000 pharmacies operating in the country with a total market size of about USD 2 billion (equivalent to 25% of the pharmaceutical retail scale including pharmacy and hospital channel). However, this market is quite fragmented when there is really no dominant brand. The pharmaceutical retail chain with the largest number of stores today is Pharmacity, which was established in 2011, with 328 stores as of April 2020.
In the circumstance where the ICT industry is entering the saturation phase, FRT is stepping up to find growth momentum from new businesses in which Long Chau pharmacy chain is highly promising.
In the annual report of FRT in 2019, the pharmaceutical market in Vietnam is assessed to be quite attractive to investors. According to BMI, this market sales will increase from USD 7.7 billion in 2021 to USD 16.1 billion in 2026. The compound growth rate will reach 11% in VND.
The IMS Health also forecasts that the average spending on pharmaceuticals per capita in Vietnam will increase to USD 50/person/year in 2020 compared to over USD 20/person in the period of 2015-2017. According to the calculations, 25% of pharmaceutical revenue in Vietnam, equivalent to nearly USD 2 billion (in 2021) to about USD 4 billion (in 2026), will come from the pharmaceutical retail market through pharmacy channel.
In addition to pharmaceuticals, FRT is testing a number of new industries such as electronics, e-commerce and latest, cosmetics, however they are still in the testing phase and have not been officially announced.
According to Ky Ngoc, Forbes Vietnam
Published May 18, 2020
Long Chau pharmacy chain gained VND 239 billion of turnover in the first quarter of 2020 and reached 100 stores
In a short time, Long Chau may face the risk when changing from selling non-quota products to official products, will add 10% of VAT to the cost of goods sold, the analysts raised their concerns.
After more than 2 years being taken over by FPT Retail (FRT), Long Chau chain has reached the milestone of 100 pharmacies in over 30 provinces and cities nationwide. The Company has also decided on 40 locations to open new stores in the second quarter of 2020. It is expected that Long Chau will reach 200 stores by the end of 2020.
It is known that Long Chau chain currently sells prescription and over-the-counter medicines, functional foods, cosmetic pharmaceuticals and health care products. By the end of the first quarter of 2020, Long Chau achieved VND 239 billion of turnover, up 20% compared to the fourth quarter of 2019, 2.5 times higher than that in the same period in 2019.
FRT has a strategy to increase the coverage of Long Chau pharmacies nationwide, accounting for about 30% of the market share of pharmaceutical sales through pharmacies in the next 2 to 3 years. For the plan until 2021, the chain will officially enter the stage of ‘boom’ when it is the first year when it gains profits, the number of stores is expected to be increased to 420 stores with the turnover of more than 2 times, VND 4,300 billion. Turnover of the following year (2022) will be VND 6,500 billion in revenue and VND 86 billion in profit, reaching 620 stores.
However, in a short-time, Long Chau will face the risk when changing from selling non-quota products to official products, which will add 10% of VAT to the cost of goods sold, the analysts raised their concerns.
In addition, Long Chau also sells imported medicines and functional foods that the competitors rarely sell. These imported products are brought to Vietnam by hand and in non-quota ways, they are sold at small business households, thus being more affordable. If FRT converts all of Long Chau pharmacies from small business households to one enterprise (to consolidate the FRT’s financial statements), this will not only cause the Company to pay more 10% VAT in selling expenses but also prevent the Company from selling imported drugs and functional foods by hand in large quantities like before, which may reduce the product portfolio in a short term.
According to Tri Tuc, CafeF.
Published May 18, 2020
(ĐTCK) FPT Digital Retail Joint Stock Company (FPT Retail, HoSE: FRT) has announced their consolidated financial statements for the first quarter of 2020 with VND 4,093 billion of turnover and VND 47 billion of profits before tax.
Especially, the turnover from Long Chau pharmacy chain reached VND 239 billion in the first quarter of 2020, which was 2.5 times more than that in the same period of 2019. FRT said that they had been focusing on promoting online sales, especially during Covid-19 epidemic period. The online turnover in the first quarter of 2020 reached VND 1,107 billion, accounting for 27% of FRT’s total turnover.
Regarding the store network, at the end of the first quarter of 2020, FRT had 603 FPT Shop stores in total. There were 83 Long Chau stores spreading across 19 provinces and cities with 13 new stores compared to the end of 2019. Currently, Long Chau has decided on 40 locations to open new stores in the second quarter of 2020.
It is expected that the General Meeting of Shareholder will be held on 28 May 2020 under offline and online meeting.
For the plan in 2020, FPT Retail will continue to maintain the operation of FPT Shop along with cross-selling products in the form of shop – in – shop, boosting the investment in FPT Long Chau pharmacy chain, switching to electronic form in customer service, optimizing the internal management, and at the same time, testing more new business segments.
Recently in the market, FRT’s shares have risen sharply. Especially, in April alone, FRT’s shares were increased by more than 90%, closing the session of 29/4 at the price of VND 21,250 per share.
According to Hoang Minh, Dau tu Chung khoan.
Published April 29, 2020
FPT Retail achieved VND 4,093 billion of turnover, VND 37 billion of revenue in the first quarter of 2020
Despite in a period where FRT is focusing on strong investment in Long Chau pharmacy chain while being affected by Covid-19 epidemic, FRT still gains some impressive results in the first quarter of 2020.
In the first quarter of 2020, FPT Retail (FRT) reached VND 4,093 billion in turnover, down 3% compared to the last quarter of 2019. Its profits before tax reached VND 47 billion, which was VND 61 billion more than that in the last quarter of 2019. In that, Long Chau’s turnover reached VND 239 billion, up 20% compared to the last quarter of 2019, which was 2.5 times more than that of the same period in 2019.
FRT said that they will continue to focus on promoting online sales, especially during Covid-19 epidemic period. The online turnover in the first quarter of 2020 reached VND 1,107 billion, up 20% compared to the fourth quarter of 2019, accounting for 27% of FRT’s total turnover.
The total assets calculated until the end of the first quarter were VND 6,046 billion, in which the inventories accounted for more than VND 3,011 billion, down 10% compared to that of the beginning of the year. Cash, cash equivalents and short-term deposits were VND 1,378 billion, equivalent to that at the start of the year. Short-term loans were VND 3,814 billion, equivalent to 63% of the capital source. There were no long-term loans.
When the first quarter of 2020 ends, FRT had 603 FPT Shop stores in total. There were 83 Long Chau stores spreading across 19 provinces and cities with 13 new stores compared to the end of 2019. Currently, Long Chau has decided on 40 locations to open new stores in the second quarter of 2020.
FPT Digital Retail Joint Stock Company intended to hold the annual General Meeting of Shareholder on 20 March 2020. However, due to the complicated situation of Covid-19 epidemic and in order to ensure the health and benefits for the shareholders, also implementing the Ministry of Health’s recommendation of limiting crowded gatherings, the Board of Management of FRT decided to postpone the General Meeting of Shareholder until 28 May 2020.
It is expected that the General Meeting of Shareholder will be held under offline and online meeting.
According to Anh Duong, Cafebiz
Published April 29, 2020
In a drugstores race between top electronics retailers Mobile World and FPT Retail that began in 2017, the latter is well ahead.
A drugstore of FPT Retail in Ho Chi Minh City. Photo by VnExpress/Phuong Dong.
FPT Retail, Vietnam’s second largest electronics retailer, announced mid-May that it has opened over 100 drugstores in over 30 provinces and cities, each selling prescription drugs, over-the-counter (OTC) medicines, functional foods and cosmetic products.
Mobile World, the country’s top electronics retailer, only operates 20 drugstores in Ho Chi Minh City. The stores have a total daily traffic of 4,000 visits, according to the company’s website.
Both retailers had entered the pharmaceutical retail market in late 2017, each acquiring their own chain of drugstores, hoping to cash in on a rapidly growing domestic appetite for healthcare and cosmetics products.
Mobile World was initially more aggressive in its approach, taking a 49 percent stake in the Phuc An Khang drugstore chain for an undisclosed sum. The chain was already operating the same 20 stores it has now, except that the name has changed to An Khang.
Nguyen Duc Tai, Chairman of Mobile World, had said then that the company planned to invest a further VND500 billion ($21.47 million) to gradually acquire a controlling stake in the pharmaceutical retail chain, and was eyeing an expansion to increase the number of stores to 100 in Ho Chi Minh City.
“Healthcare is a big market in Vietnam. Apart from Western medicines and vitamins, functional food is a future trend,” Tai had said.
FPT Retail was more tentative when it invested an unspecified sum for a 75 percent stake in the local Long Chau chain, which only operated four stores. Commenting on the acquisition at the time, Nguyen Bach Diep, Chairman of FPT Retail, had said that the investment was made via contribution of “personal capital” and did not affect the company’s core business activities.
FPT Retail had wanted to enter a market that was worth “around $5 billion, which had not yet identified a clear leader,” she said.
Vietnam’s pharmaceutical market is likely to grow to $7.7 billion by 2021 and $16.1 billion by 2026 from around $4.7 billion in 2017, with an average CAGR (compound annual growth rate) of 11 percent per year, according to market research firm IBM Research.
After operating Long Chau for a year, FPT Retail established a subsidiary to manage the drugstore chain with a chartered capital of VND100 billion ($4.3 million). The chain had expanded to 26 stores with an average monthly revenue of VND2 billion ($86,000) per store by the end of 2018, according to FPT Retail’s publications.
Big plans get bigger
Now, with over 100 outlets in operation, FPT Retail recently announced plans to double the number of drugstores to 200-220 by the end of the year, aiming to acquire 30 percent of the domestic drugs market over the next 2-3 years, earning revenues of around VND5 trillion ($215 million).
Diep said the pharmaceutical retail market was of roughly the same size as the mobile phone industry but was not dependent on the national economic situation. Its growth was guaranteed to maintain double figures, particularly with Vietnam’s spending on these products still at a low level.
FPT Retail’s drugstore chain earned revenues of VND500 billion ($21.47 million) in 2019, but suffered a pre-tax loss of VND40 billion ($1.72 million), according to financial statements.
The company said the chain made another VND240 billion ($10.3 million) in the first quarter of this year, but did not say if it made any profit or not.
Meanwhile, the An Khang chain is yet to prove profitable for Mobile World. According to the company’s first quarter financial statements, the company recorded a VND1.4 billion ($60,100) loss, attributed in proportion to its 49 percent shareholding in the drugstore chain.
Cumulatively, Mobile World has lost nearly VND7 billion ($300,000) in An Khang since its 2017 acquisition.
However, according to Mobile World’s management, expansion of the drugstore chain was “put on hold” to assess risks, contrary to their previous expansion plans. Nguyen Duc Tai, Chairman of Mobile World, said in an interview earlier this month that regulations governing the pharmaceutical industry were till vague, so his company was not ready to raise its stake to above 49 percent.
For instance, Vietnamese regulations require individual licensed practitioners and not businesses to stand legally responsible for each outlet, which could give rise to a lot of legal risk, he said.
“An Khang was not bought as a financial investment for reselling. It is still an interesting field, and Mobile World is ready to step up investment when regulations are clear and appropriate with corporate governance principles,” he said, adding that the company was directing investments towards retail groceries instead.
Vietnam’s pharmaceutical market sales are estimated at $6.5 billion in 2019, with hospitals accounting for 75 percent, according to securities firm Viet Dragon Securities.
The Ministry of Health estimates that Vietnam had around 57,000 drugstores last year, most of them small businesses run by families.
Long Chau’s turnover in the first quarter increased by 2.5 times compared to the same period in 2019, FRT plans to open 40 new stores in the second quarter
(VNF) – FPT Digital Retail Joint Stock Company (FPT Retail, HoSE: FRT) has announced the production and business results of the first quarter of 2020.
Long Chau’s revenue in the first quarter increased by 2.5 times compared to the same period in 2019, FRT plans to open 40 new stores in the second quarter. (Photo)
Accordingly, in the period, the Company brought in VND 4,093 billion of turnover, which is decreased by 3% compared to the fourth quarter of 2019. The profit before tax of the Company during the period reached VND 47 billion.
In FPT Retail’s system, Long Chau chain has gained VND 239 billion of turnover, up 20% compared to the fourth quarter in 2014, 2.5 times as much as that in the same period of 2019.
During the period, the Company has been focusing on promoting online sales, especially during Covid-19 epidemic period. Accordingly, the online turnover in the first quarter of 2020 reached VND 1,107 billion, up 20% compared to the fourth quarter of 2019, accounting for 27% of FRT’s total turnover.
Regarding the store network, at the end of the first quarter of 2020, FRT had 603 FPT-shop stores in total. At the same time, there were 83 Long Chau stores spreading across 19 provinces and cities, which is 13 new stores compared to the end of 2019.
Currently, Long Chau has decided on 40 locations to open new stores in the second quarter of 2020.
Besides, FPT Retail has decided on the date of organizing the annual General Meeting of Shareholders in 2020, which is 28 May 2020, under offline and online meeting.
Before that, the Company planned to hold the General Meeting of Shareholders on 20 March 2020; however, the meeting was postponed due to the complicated situation of Covid-19 epidemic.
According to Ha Thu, Vietnam Finance
Published May 6, 2020
Up to now, Vietnam is easing social distancing campaign gradually, FRT – the owner of Long Chau chain – accordingly will launch many practical incentives for the customers.
As one of the units that have been affected heavily by Covid-19 epidemic when the factories in China were locked down from operation, FPT Retail (FPT) has witnessed an increase in profits to VND 35,6 billion in the first quarter.
Promotions will be increased to bolster up the consumers’ demand after social distancing
Sharing with us, the Company’s representative said that the Covid-19 epidemic had a quite serious and multi-dimensional impact on all economic and social fields of our country. Especially for retail companies such as FRT, the difficulties brought by the epidemic are even more pronounced. The previous period of social distancing has somehow affected the business results of our Company. Accordingly, the turnover of March 2020 was decreased by 20% compared to February 2020.
“However, there are even opportunities in challenges, in the epidemic, the trend has been shifted to online shopping, the demand for personal devices to work from home has escalated, FRT has taken advantage of that to sell products, which has improved the risk management. This is also a big hit for FRT to be more creative in order to overcome the difficulties and discover new values”, FRT’s side said.
According to the statistics, FPT Shop’s laptops’ turnover in January 2020 was up by 79% compared to that of January and its turnover in March was up by 172% compared to January, “FRT will continue investing in this segment in the long term”.
At the moment, Vietnam is easing social distancing step by step, FRT accordingly will launch many practical incentives for the customers. To be specific, in this May, FPT Shop will offer big discounts for mobile phones, laptops and the customers can buy pay for many products in instalments with 0% interest and with a prepayment of from only VND 399,000. Concurrently, FPT Shop will also offer free anti-bacteria hand sanitizers and offer home delivery within 60 minutes.
The retail industry is expected to reach USD 180 billion in 2020: FRT will maintain the ICT in order to have new business expansion strategies
According the report of Vietnam Report, in the past few years, the retail industry in Vietnam has experienced rapid growth. The compound annual growth rate (CAGR) in the period 2013 – 2018 was 10,97%. The total retail revenue is expected to reach USD 180 billion in 2020, equivalent to an increase of 26,6% from 2018. However, the dramatic rise of digital and e-commercial retail channels is also worth high attention in the near future.
According to the forecast of World Bank, household expenditure will increase by 10,5% per year on average with the strong growth of middle class. Currently, about 70% of the Vietnam’s populations is financially secured, of which 13% is the middle class according to the world’s standard. Income of those people in this class are rapidly growing, which is very likely to reach 26% in 2016. From 2014, approximately 1,5 million of Vietnamese have joined the middle class per year on average, which indicates that households are reaching higher steps in the economic ladder after escaping the poverty. Economy growth, living-standard improvement and the increase of middle class are solid foundations to bolster up the extension of retail industry in the coming time.
Accordingly, in 2020, FPT Retail will continue to maintain the ICT chain so as to keep the growth rate the same as that in 2019. This is also a fulcrum for FRT to invest and extend new business paths. FRT plans to increase the revenue of the store chain by starting to sell sun glasses and watches in the form of shop-in-shop.
In 2020, there will be 200 new Long Chau pharmacies
In the pharmaceutical industry, there are 83 Long Chau pharmacies spreading across 19 provinces and cities, up 13 stores compared to the end of 2019. Up to now, Long Chau has decided on 40 locations to open new stores in the second quarter of 2020. It is foreseen that Long Chau may reach 200 stores at the end of 2020.
“FPT Retail’s current strategy is to expand the coverage nationwide, accounting for 30% of the pharmaceutical retail marker share through pharmacies in 2 to 3 years”, said the chain’s representative.
In the annual report of 2019, FRT assessed that the pharmaceutical industry in Vietnam is considered attractive for investors. According to BMI, the revenue in this segment will increase from USD 7.7 billion in 2021 to USD 16.1 billion in 2026. The compound annual growth rate will reach 11% in Vietnam Dong.
On the other hand, the pharmaceutical retail industry in our country is very fragmented. Because the average income and health awareness is becoming higher, people tend to choose modern, branding and GPP-standard pharmacies (with good pharmacy practices) instead of small and unqualified pharmacies. This shift is being accelerated party thanks to the Government’s policies that control the pharmaceutical retail industry via pharmacies (Circular 02/2018/TT-BYT regulating on good pharmacy practices)
For FRT, after discovering the secret to success for Long Chau chain, in 2020, FRT plans to expand the chain to 220 stores and increase the coverage nationwide. In the long-term plan, FRT sets goals to develop the pharmaceutical segment in a methodically planned and controlled manner the same as the operation of digital retail segment.
According to Tri Tuc, CafeF
Published May 7, 2020
On 06 March, the Board of Management of FPT Digital Retail Joint Stock Company (FPT Retail) has approved the resolution to appoint Mr Hoang Trung Kien, the member of the Board of Management, as the General Director of FPT Retail since 07 March 2020. Ms Nguyen Bach Diep will continue to be the Chairman of the Board of Management.
Mr. Hoang Trung Kien
In 3 years, FPT Retail aims to improve the operational efficiency of all the business fields and become the leading multi-industry retail company in Vietnam.
In particular, FPT Shop – the digital-product retailing system will optimize profits by focusing on developing a number of product lines with high profit margins, optimizing the business locations, cross-selling the products such as watches, sun glasses, etc; investing in equipment and improving the personnel quality.
Pharmaceutical segment is the growing motivation of FPT Retail in the future. After figuring out the secret to success, the pharmaceutical chain is expected to increase the number of stores by threefold compared to 2019, from 70 to 220 stores right in this year, the revenue will also be increased by 3 times from VND 500 billion in 2019 to VND 1,500 billion in 2020. FPT Retail will particularly focus on investing in technology, which is to build a standard retail platform to pave the way for accelerating new business paths as well as to create momentum for the future growth.
In the immediate future, in 2020, FPT Retail continues to set target of increasing the revenue, maintaining the retail market share of mobile phones, laptops, expanding the coverage of Long Chau system to 220 stores nationwide and developing new business segments.
The new General Director – Mr Hoang Trung Kien was born in 2017, he graduated Master of Business Administration and Information Systems (MBIS) from Université of Libre de Bruxelles (Kingdom of Belgium). Joining FPT in 2000, he has strengths in building, managing the system and developing business with 7 years of experiences in building important information systems for the Government, authorities, and large enterprises in Vietnam; 12 years of experiences in expanding the coverage of telecommunications, which is an intensely competitive field.
With more than 19 years of working for FPT, he has been in many important positions such as Deputy General Director of FPT Telecom (July 2020 – March 2020) where he was in charge of business development of many regions across the country; Deputy Director of FPT Data Center of FPT Telecom (2007), where he managed the service consultancy and deployed the information system; Sales Manager of FPT Software Solutions Company Limited (2004 – 2006).
With high experience in opening and developing new retail chains, Ms Nguyen Bach Diep, Chairman of the Board of Management, will focus on running Long Chau pharmacies and promoting new business segments of FPT Retail. Ms Nguyen Bach Diep was born in 1972, she is the person who has made great contribution in bringing FPT Retail to become the second largest digital retail company in Vietnam. In March 2019, Ms Diep was honored to be in the list of 50 most influential women in Vietnam (According to Forbes Vietnam).
FPT Retail is operating the retail chains, including: FPT Shop, F. Studio by FPT, Long Chau pharmacies together with a number of new lines that are in the testing process. At the present, Long Chau pharmacies have nearly 80 stores nationwide, serving approximately 25,000 consumers a day, the turnover of each pharmacy is 3 times higher than that of other chains. There are 590 stores of FPT Shop, 15 stores of F. Studio by FPT across the country, which help millions of people more convenient in buying technology products.
According to Cafebiz
Published March 7, 2020.
FPT Retail’s Shareholders General Meeting: The profit will increase by 20%, Long Chau chain still incurs losses
FPT Digital Retail Joint Stock Company’s Shareholders General Meeting (FPT Retail, code: FRT) has passed the business plan for 2019 with the target revenue of VND17,700 billion, up 16%, and the profit after tax of VND418 billion, up 20% compared to 2018.
In that, the revenue is contributed mainly by media which is ITC, with the expected amount of VND17,200 billion; regarding the new industry, which is Long Chau pharmaceutical chain, such sector may contribute only VND500 billion in the revenue without generating profits, the expected loss is VND20 billion.
The promotion of installment purchase and accessories distribution contributes to the growth of 2019
In 2018, FRT implemented the F.Friend program (a companion program with enterprises) at about 250 factories for the employees. This year, FRT will gradually shift its focus to officers.
At the same time, the Company still continues to cooperate with Vinaphone so as to boost the sales. Such channel has brought FRT about VND1,000 billion in the revenue of 2018. It is expected that this program will make the revenue increase by VND300 billion, contributing VND1,300 billion to the total revenue this year.
With the campaign to improve products’ life, the main purposes are to stimulate the customers to buy more products, purchase old machines to exchange new machines, exploit the form of installment payment – accounting for 32% of total revenue. In 2019, FRT plans to increase the contribution from such business to 45%, equivalent to VND1,700 billion, which will be included in the target revenue of VND2,500 billion in order to ensure the growth of 16%.
According to statistics, for former retail chains, the revenue from installment purchase accounts for 50% of the total revenue, so according to Mrs. Diep, FRT still has chances to promote this activity.
In addition, the Company also boosted its accessories segment, with the goal of bringing the revenue of VND1,000 billion, up 67% compared to 2018. At the moment, FRT has worked with the suppliers to buy products from its origin in order to have a 20% more competitive price than the market price while the profit margin still increases by 10% compared to previously.
Concerning online channel, 4 years ago, this sector only contributed 7-8% in FRT’s total revenue, but in 2018, it contributed up to 15%. For the plan in 2019, such business is expected to contribute VND1,000 billion, besides the products of Samsung, Oppo, etc., FRT will include more exclusive products of some specialized labels for online items. At the same time, FRT will deploy new products and new industries. FRT also continues to combine e-commerce exchanges to take advantage of their promotion policies and increase the rate of access.
It is until 2020 that the pharmacies will general profits
Ms. Diep said that for the period from 2019 to 2022, the pharmacies chain will be the main and potential segment that contributes to the growth of FRT.
In 2019, the Company expects to open 50 new pharmacies in order to have 70 stores in total. For the succeeding years, FRT will open about 100 new stores each year. By 2020, Long Chau is expected to have 700 stores.
The pharmaceutical market’s size is of about USD4,5 billion per year, (excluding the consumption goods in the market without invoiced, smuggled goods), which is the same as the size of mobile phone industry. People’s living standards are increasing, there are more willingness to spent on health. In addition, there are more than 30,000 pharmacies nationwide, such number is three times higher than the number of mobile phone stores in the past and such industry is the leading one at the moment.
Therefore, Ms. Diep said that, after the development of distribution system, there is no reason for not considering importing medicines for trading, or even producing medicines ourselves.
FRT will focus on the logistics sector and develop pharmaceutical personnel. Its ambition is to account for 30% of the pharmaceutical market share through pharmacies in the next 3 to 4 years, this industry will contribute about 40% to the total revenue of FRT (about VND10,000 billion).
Ms. Diep shared that, each Long Chau pharmacy is estimated to bring about VND3 billion per month with more than 6,000 SKU, while in other chains, it is about 2,000 SKU, with the revenue of VND600-700 million per month.
Being questioned about the break even time of the stores, Ms. Diep said that she couldn’t state a definite number because in 2018, they were experimenting many different models, hence the break even time depended on the experimented shop’s style. Since 2019, this model has been applied widely in Bien Hoa, My Tho, Long An, the situation in Ho Chi Minh City is quite stable.
At the moment, there are 3 types of pharmacies: A, B and C depending on the location and the area, therefore the investment cost will be different, however, it is about 70-80% of the FPT Shop’s expenses. The inventories is about 1,5 times of the total expenses for construction and repairs. Concerning liabilities, FRT negotiated with the counterparties to pay within 15 to 30 days.
For the plan in 2019, the chain of pharmacies is expected to contribute VND500 billion in the revenue while it still incurs losses of VND20 billion. . The target for 2020 is to reach the revenue of VND2,000 billion and to stop incurring losses; by 2021, revenue of VND4,300 billion and profit of VND62 billion and by 2022, the revenue of VND6,500 billion and profit of VND193 billion.
The Shareholders General Meeting also approved ESOp stock issuance statement in 2018 and policies for 2019; statement of dividend payment, in which 10% by cash and 15% by shares (paid in the second or third quarter of 2019). The Board of Management and the Board of Supervision will also not receive remuneration by cash in 2018 and 2019.
In addition, there is a statement to ask for the shareholders’ opinions on transactions with related parties. Specifically, in 2018, FRT has recovered all the loans of nearly VND71 billion from Ms. Diep. According to Ms. Diep, that was when the Company appointed her to buy Long Chau chain as an individual for the experiment to see whether it is safe and suitable for the development, FRT will later apply such model.
Besides that, FRT also borrowed VND20 billion from FPT Corporation (FPT) last year.
According Phan Hang, Tin nhanh Chung khoan