Business plan for 2023
The General Meeting approved the revenue target of VND34.000 billion - an increase of 13% and a pre-tax profit of VND240 billion - a decrease of 51%, compared to the equivalent figures of 2022. The business plan was set by FPT Retail in the turbulent context of the current market, with the expectation that the economy will gradually recover throughout the last two quarters of the year.
In 2023, it is anticipated that FRT’s business activities will continue to be severely impacted by adverse factors from the fourth quarter of 2022, such as a significant drop in purchasing power for ICT products, perpetually rising financial chargers, high inflation, a continuing fall in the installment purchase market, … The current circumstance poses major challenges for FRT, particularly for the FPT Shop chain, as a result of the substantial decline in purchasing power and the unpredictability of the recovery period. Meanwhile, although being an essential commodity category, pharmaceutical products are anticipated to be impacted by customers' tendency to reduce the expenditure. However, since The FPT Long Chau chain has been successfully operated for years, the company still set a target of double-digit growth in revenue for this segment.
Action plan to get FPT Retail “ride out the 2023’s storm”
FPT Retail always ensures flexibility and be quickly responsive to steep market fluctuations. Particularly in the capital market, FRT will prioritize the optimization of cash flow, ensuring liquidity for the entire company, and fulfilling capital resource for the expansion of the FPT Long Chau chain.
In addition, FRT continues to invest for the long-term visions, including the implementation of the second general warehouse in Long An following the completion of the first general warehouse in Me Linh (Hanoi) in the second quarter of 2022, and continue investing in technology and digital transformation at its chains. In consideration of the current challenging circumstances, besides solving the problem of business performance, the company’s primary focus will be on providing the best possible operating conditions in order to provide a positive experience for consumers, especially when shopping demand increases again.
The company will proactively offer many sales policies, promotions, and price subsidies through the FPT Shop chain to continue supporting and accompanying customers in the context of high inflation and impacted income lead to the chain's gross profit margin is expected to be lower than in previous years.
On the other hand, FRT will concentrate on steadily increasing gross profit by selling additional household products in current FPT Shop stores. Up to now, there have been more than 300 FPT Shop stores selling household goods, which is expected to increase to 600 stores by the end of 2023. Simultaneously, the company will continue to train and improve sales skills and style of customer service in accordance with the dedicated service strategy in order to enhance the customer experience.
After more than five years of operation, FPT Long Chau has achieved initial success by becoming the pharmacy chain with the most stores in Vietnam till now, as well as gaining recognition and the trust from a significant number of customers. With the goal of continuing to grow and enhance awareness of coverage area, FPT Long Chau will continue to establish at least 400 more pharmacies, bringing the total number of pharmacies by the end of 2023 to 1,400 - 1,500.
At the same time, the system maintains focus on increasing its position as the No.1 pharmacy in terms of medicine, especially prescription drugs, in order to offer customers with the best choices at the most affordable prices in the market. Besides, FPT Long Chau will broaden additional services, incorporate technologies and implement digital transformation into operation, so that customers can have the best experience in counseling, shopping, delivery, etc. and health care. In parallel with developing system and optimizing operation, FPT Long Chau will constantly recruit, train, and strengthen the professional capacity and service skills for the team of Pharmacists to bring trust and most wholehearted service to customers.
Regarding the dividend payment plan, FRT will pay cash dividend in 2022 at the rate of 5% (corresponding to VND500 per share) and stock dividend at the rate of 15% (at the record date, shareholders owning 01 share will be entitled to 01 share held and for every 20 shares held will receive 03 new shares). Additionally, FRT offers a cash dividend payment of up to 10% (VND1,000/1 share) for 2023; The precise rate of cash dividend for 2023 will be decided by the Annual General Meeting of Shareholders in 2024.
