FPT sets revenue and profit growth of over 18 per cent this year

Sunday, Apr 09, 2023 11:28

Nguyen Van Khoa, general director of FPT, spoke at the company's 2023 Annual General Meeting of Shareholders. — Photo courtesy of FPT
FPT Corporation will continue to grow steadily in 2023 despite potential risks from the global economy, Nguyen Van Khoa, general director of FPT, said at its 2023 Annual General Meeting of Shareholders on Thursday afternoon. 

According to the International Monetary Fund, the global economy still faces many headwinds this year, including the conflict between Russia and Ukraine, the price crisis and the slowdown of the Chinese economy, which will create an uncertain period for the economy, geopolitics, and ecolodge.

Amid the global challenges, FPT has set a growth target of 18.8 per cent in revenue and 18.2 per cent in profit before tax in 2023, equivalent to nearly VND52.3 trillion (US$2.2 billion) and VND9.1 trillion.

Specifically, the technology sector continues to play a leading role in the growth, with expected revenue of VND31.15 trillion, up 20.9 per cent year-on-year, and profit before tax of nearly VND4.2 trillion, a gain of 23.8 per cent on the year.

In 2023, FPT sets a target of $1 billion in revenue for information technology services in global markets. 

To achieve the goals, Khoa said that the company would continue to invest intensively in developing new products, platforms, and solutions based on core technologies such as Cloud, AI, and Blockchain while focusing on expanding sales channels at home and abroad.

The general director added that the company's divisions would put all their resources and seize every opportunity to ensure stable growth. 

"The technology sector targets the US, Japanese, and European markets and invests $35-50 million per year for M&A and market expansion, promoting digital transformation," said Khoa. "Meanwhile, regarding the telecommunications sector, the company will invest heavily in infrastructure, have more undersea fibre optic cables, and accelerate the investment progress."

According to the latest forecast from consulting firm Gartner, the global IT spending demand in 2023 is expected to grow by 5.1 per cent to reach $4.6 trillion.

The growth rate is higher than the 3 per cent growth in 2022 thanks to a strong increase in demand to deploy digital initiatives to boost businesses globally in response to economic uncertainties. 

International Data Corporation (IDC) also expected that spending demand on digital transformation would reach $3.4 trillion by 2026 with a compound annual growth rate over five years of 16.3 per cent.

The 2023 Annual General Meeting of Shareholders also approved the new development strategy DC5-Digital Conglomerate 5.0, the plan to use 2022's profits and the dividend payment policy in 2023, the plan to issue shares to employees in the period of 2023-2025, and amend the company rules and governance regulations.

Last year, the company's revenue increased by 23.4 per cent on-year to VND44.01 trillion, resulting in a gain of 20.9 per cent in profit before tax to more than VND7.6 trillion. Both exceeded the company's plan. — VNS

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