In two months, Phuc Long milk tea chain made a profit of 176 billion VND28/04/2022
After deducting the cost of goods sold, Phuc Long reported a gross profit of 176 billion dong in the last two months, equivalent to a profit margin of 68.6% – the highest among Masan’s subsidiaries.
Masan Group (MSN)’s financial statements for the first quarter of the year consolidated business results of Phuc Long milk tea chain after increasing its ownership to 51% in January 2021.
The total revenue of this chain in the last two months reached VND 257 billion, completing about 10% of the full year revenue plan of VND 2,500-3,000 billion. Phuc Long contributed 1.4% to Masan’s total revenue in the first quarter, but accounted for 3.5% of gross profit. EBITDA (profit before tax, interest and depreciation) of the chain reached 47 billion dong.
70% of Phuc Long’s revenue during this period came from big stores. 14% from kiosks in the WinMart+ chain of stores and the rest from small stores, sales channels through businesses.
Masan’s management did not disclose the growth of revenue and profit in the first months of this year compared to the same period, but confirmed that this chain has been taking the leading position in the beverage retail industry in big cities.
By the end of March, Phuc Long had 78 large stores, 13 small stores and 760 kiosks. The company set a target this year to open 100 new large stores and 400 kiosks at Winmart+ points of sale. The company also said it will add more coffee lines at major stores and build new menus for kiosks at more affordable prices to increase customer traffic.
Masan first bought shares of Phuc Long in May 2021. At that time, the company spent 15 million USD (equivalent to 340 billion VND) to hold 20% of the shares, meaning the valuation of Phuc Long was 75 million USD.
Earlier this year, the company spent 110 million USD (equivalent to 2,500 billion VND) to buy an additional 31% stake and consider this an important piece of the mini mall model – a point of sale serving many consumer needs such as: necessities, financial services, telecommunications, beverages and healthcare. At that time, the value of the milk tea chain was 355 million USD.