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- H1 2024: Net sales were VND18.3tn (+22% YoY) and NPAT-MI was VND66bn (USD3mn; vs a net loss of USD9mn in H1 2023), equivalent to 49% and 62% of our respective full-year forecasts. NPAT-MI tracked ahead of our 2024F forecast mainly due to (1) lower-than-expected financial expense and (2) higher-than-expected NPAT-MI from Long Chau (LC).
- Q2 2024: Net sales increased 29% YoY and NPAT-MI was VND27bn (vs a net loss of USD9mn in Q2 2023). In Q2, FPT Shop closed 101 underperforming stores and recorded a one-off store closure expense of approximately VND30bn, according to our estimate.
- LC: In Q2 2024, its average monthly sales/store remained at VND1.2bn. LC’s sales and NPAT-MI grew 65% YoY and 93% YoY, respectively. In Q2, LC opened 119 stores, increasing its store count to 1,706 at end-Q2 2024. It also opened 36 new vaccination centers in the quarter, increasing its store count to 87.
- FPT Shop: In Q2 2024, FPT Shop’s sales dropped 7% YoY, while its GPM jumped 5.6 ppts YoY to 13.8% (+40 bps QoQ) due to improved product mix. The chain’s net loss was VND62bn (USD2mn; -77% YoY). FPT Shop closed 113 stores in H1 2024 (exceeding our expectation of 50 stores), decreasing its store count to 642 at end-Q2 2024.
- Profitability: LC’s NPM was stable at 1.5% (+20 bps YoY) in Q2 2024. As for FPT Shop, its Q2 NPM declined 40 bps QoQ to -1.8% (+5.5 ppts YoY), which we attribute to a one-off store closure expense incurred in the quarter.
- Our view: FPT Shop’s net loss in H1 2024 is in line with our forecast, and we expect this loss will reduce towards the year’s end. Conversely, FRT’s NPAT-MI tracked ahead of our 2024F forecast mainly due to (1) lower-than-expected financial expense, and (2) higher-than-expected NPAT-MI from LC. We see upside potential to our 2024F forecast, pending a fuller review.
FRT’s Q2 and H1 2024 results
VND bn | Q2 2023 | Q2 2024 | YoY | H1 2023 | H1 2024 | YoY | 2024F | H1 2024 as % of 2024F |
Net revenue | 7,170 | 9,240 | 29% | 14,924 | 18,281 | 22% | 37,693 | 49% |
| 3,605 | 3,340 | -7% | 8,118 | 6,923 | -15% | 14,719 | 47% |
| 3,565 | 5,900 | 65% | 6,806 | 11,358 | 67% | 22,974 | 49% |
Online sales 1 | 1,330 | 1,658 | 25% | 2,740 | 3,213 | 17% | 6,134 | 52% |
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Gross profit | 1,084 | 1,811 | 67% | 2,271 | 3,618 | 59% | 7,165 | 50% |
| 293 | 460 | 57% | 720 | 940 | 30% | 1,872 | 50% |
| 790 | 1,351 | 71% | 1,551 | 2,678 | 73% | 5,293 | 51% |
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SG&A expenses | -1,219 | -1,682 | 38% | -2,338 | -3,365 | 44% | -6,662 | 51% |
EBIT | -135 | 129 | N.M. | -67 | 253 | N.M. | 503 | 50% |
Net financial loss | -67 | -36 | -47% | -137 | -71 | -48% | -218 | 33% |
| 10 | 19 | 102% | 26 | 44 | 71% | 101 | 44% |
| -76 | -55 | -28% | -163 | -115 | -29% | -319 | 36% |
NPAT-MI | -219 | 27 | N.M. | -224 | 66 | N.M. | 106 | 62% |
| -264 | -62 | -77% | -318 | -113 | -65% | -163 | 69% |
| 46 | 88 | 93% | 94 | 178 | 89% | 268 | 66% |
Gross margin | 15.1% | 19.6% |
| 15.2% | 19.8% |
| 19.0% |
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| 8.1% | 13.8% |
| 8.9% | 13.6% |
| 12.7% |
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| 22.2% | 22.9% |
| 22.8% | 23.6% |
| 23.0% |
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SG&A/net sales | 17.0% | 18.2% |
| 15.7% | 18.4% |
| 17.7% |
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EBIT margin | -1.9% | 1.4% |
| -0.4% | 1.4% |
| 1.3% |
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| -6.6% | -0.8% |
| -3.3% | -0.9% |
| -0.5% |
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| 2.8% | 2.6% |
| 2.9% | 2.8% |
| 2.5% |
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NPAT-MI margin | -3.0% | 0.3% |
| -1.5% | 0.4% |
| 0.3% |
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Source: FRT, Vietcap (1 online sales are included in FPT Shop’s sales)
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