FPT Retail is a Vietnamese retail company listed on the Ho Chi Minh Stock Exchange under the ticker FRT. It operates a chain of FPT Shop consumer electronics stores and owns FPT Long Chau, a subsidiary specialising in pharmacy and vaccination services. FPT Retail is a subsidiary of FPT Corporation, a leading Vietnamese technology conglomerate.
In 2021, the firm’s revenue and profit soared by 1.5 times and 19.5 times, respectively compared to 2020. This was driven by the increased demand for laptops and phones during the COVID-19 pandemic. Additionally, Long Chau also recorded a threefold increase in revenue reaching US$160 million in 2021, fueled by the addition of 200 new stores. This performance led to a 6-fold increase in its stock price from July 2021 to April 2022.
That said, in 2022, revenue increased by about 34 percent but profit decreased compared to the previous year due to rising costs.
Moreover, in 2023, the company reported a loss of US$13 million, driven by a sharp decline in demand for technology products and intensified price competition. Furthermore, one-off expenses, such as performance bonuses at Long Chau and closure costs for underperforming FPT Shop stores, further contributed to the loss.
In the first half of 2024, FPT Retail’s revenue increased by 22 percent compared to the same period in 2023, of which Long Chau’s revenue accounted for 63 percent. During this period, FPT Retail realigned its operations, expanding Long Chau’s network by adding 209 pharmacies and 77 vaccination centres while closing a further 113 underperforming FPT Shop stores.
In 2024, amid a slow recovery in non-essential consumer electronics, the company’s strategic focus is on continuing to expand its presence in the healthcare sector. FPT Retail plans to establish 100 new vaccination centres and further enhance insurance services and specialised medications.
Disclosure: The author does not have any financial interest in FRT stock.
See also: How to Open a Retail Store in Vietnam: Ultimate Guide 2024