FPT Retail forecasts 2019 profit up 20 per cent

Thursday, Mar 28, 2019 11:43

FRT held its Annual General Meeting (AGM) of Shareholders in HCM City on Wednesday. — Photo vietnambiz.vn

FPT Digital Retail JSC (FRT) is aiming for VND17.8 trillion (US$76 million) and VND418 billion in net revenue and post-tax profit this year, up 16 per cent and 20 per cent year-on-year, respectively.

The information was released during the company’s annual shareholders’ meeting held in HCM City on Wednesday.

The company, under the umbrella of leading technology, outsourcing and IT services group FPT Corporation, operates in the field of retail trade. Major products include electronics and appliances, computers and software.

At the meeting, shareholders approved the plan to pay 2018 dividends at a rate of 25 per cent, of which 10 per cent will be paid in cash and 15 per cent in shares.

In 2018, the company’s after-tax profit reached VND348 billion. It planned to spend VND170 billion on dividends.

The payment is expected to take place in the second or third quarter of this year. After the share issuance, its charter capital will increase to VND790 billion ($34 million).

In 2019, FRT’s board of directors plans to pay dividends in cash at a rate of no less than 10 per cent.

Nguyen Bach Diep, chairman and CEO of FRT, said the company planned to expand its Long Chau pharmacy chain to 70 stores to increase its presence nationwide.

Although the number of Long Chau pharmacies was still small, the monthly revenue from each store was around VND3 billion, much higher than the revenue from normal stores that brought in VND300-400 million per month, Diep said.

FRT’s pharmaceutical retail segment is divided into three channels, via hospitals, clinics and pharmacies. The company is aiming to hold 30 per cent market share of the country’s pharmaceutical retail industry via pharmacies in the next three to four years.

Under this plan, the pharmaceutical retail segment is expected to contribute about 40 per cent of FRT’s revenue, estimated at VND10 trillion.

In the future, the company will also focus on developing logistical services, increasing selling points and improving personnel training.

This year, FRT also aims to collect VND1 trillion in revenue from sales of electronic accessories, an increase of VND350 billion compared to last year.

At the meeting, shareholders also approved a plan to issue 680,000 shares under the Employee Stock Ownership Plan (ESOP) programme at a price of VND10,000 per share.

In the last six years, FRT has accepted installment payments for the sale of its products. Revenue from this accounts for 32 per cent of the total.

FRT shares have dropped 33 per cent this year, from VND71,600 per share on January 2 to end Wednesday at VND47,000 per share.

Explaining the sharp decline, FRT’s board of directors said the company had been trading on the market only bfor less than a year so they had little experience in stock prices.

Stock prices fluctuated due to market movement, they said, adding that the price was far different compared to the real value of the company’s shares. The company said it would hire consultants to take action to improve this issue for shareholders. — VNS

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