Vingroup reports losses of US$135.55 million in the retail sector

By Minh An - Oct 31, 2017 | 12:05 PM GMT+7

TheLEADERRevenues of over 1,000 convenience stores and supermarkets of Vingroup have not fully covered the investment cost though there is no sign of stoppage on its continuous expansion.

Vingroup reports losses of US$135.55 million in the retail sector
VinMart convenience store. Photo:

According to Vingroup’s segmented income statement, the retail sector earned the total revenue of VND10 trillion (roughly US$440.82 million) for the first nine months of 2017, a six per cent year-on-year decrease despite continuous expansion of convenience stores and supermarkets.

By the end of September, there have been 41 malls, 975 convenience stores of VinMart, VinMart+, VinPro and VinDS, which are present in 28 province and cities.

Besides revenue decline, huge costs of investment in expansion of the retail system caused the Group to suffer a loss of VND3,075 billion (roughly US$135.55 million), which is closely similar to the total recognized loss of 2016.

The profit of this sector may change after the addition of profit/loss from financial activities and other activities directly related to the retail sector.

Meanwhile, the Group’s core sector namely real estate transfer has had an impressive growth with VND38,072 billion (approximately US$1.68 billion) of revenue since the beginning of this year.

Vingroup’s consolidated revenue after nine months of operations reached over VN57 trillion (roughly US$2.51 billion), up 67 per cent year-on-year. However, the expansion of other business sectors has led to a rise of over 60 per cent in sales and administration expenses compared to the same period last year. Therefore, Vingroup’s before-tax profit increased to only 8.8 per cent, reaching VND4,927 billion (equivalent to US$217.2 million).