Saturday, July 11 2020

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Vincom Retail forecasts 2020 profit down 12 per cent due to pandemic

Update: May, 26/2020 - 19:37

 

Vincom Trần Duy Hưng in Hà Nội. Vincom Retail forecasts 2020 net profit down 12 per cent at VNĐ2.5 trillion (US$107.3 million). — Photo vietnambiz.vn

HÀ NỘI — Shareholders in Vincom Retail have agreed with the company’s 2020 net profit target of VNĐ2.5 trillion (US$107.3 million), a drop of 12 per cent over 2019 due to the COVID-19 pandemic.

Total revenue for the whole year is targeted at VNĐ9.9 trillion, up 7 per cent year-on-year.

Chairwoman Thái Thị Thanh Hải said the disease had affected customers’ spending habits while social distancing had disrupted retail activity at shopping centres.

Ending March, Vincom Retail recorded revenue of nearly VNĐ1.7 trillion and net profit of VNĐ492 billion, down 26 per cent and 19 per cent year-on-year, respectively. It also closed 23 centres in HCM City and Hà Nội out of the 79 centres it has across the country from March 27 and April 22.            

The company said it would not reduce rents in the long-term but instead share the difficulty with customers with a support package worth VNĐ600 billion to help tenants that had to close during the lockdown period.

This year, Vincom Retail will try to stimulate consumption while focusing on opening new megamalls with the target of having 158 shopping centres by 2026.

In addition, the company will start leasing and operating a new business model of shopping tourism with the Grand World Phú Quốc complex. With 1,000 shophouses and hotel services, Trần Mai Hoa, general director of Vincom Retail, hopes the combination of tourism, shopping and recreation will offer customers and retailers a new experience and help boost the national economy.

Responding to the company’s plan to issue bonds worth total VNĐ4.3 trillion this year, its finance director said the company had cash and cash equivalent of VNĐ3 trillion to meet all current investment needs. The plan was designed to prepare cash for new opportunities or be used for projects that have already gone into operation.

Vincom Retail reported total revenue of VNĐ9.26 trillion in 2019, most of which came from leasing real estate and related services worth more than VNĐ7 trillion. Profit after tax reached VNĐ2.85 trillion, up 18 per cent year-on-year. — VNS

 

 

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