FRT - Pharmacy’s profitability improves, but ICT loss drags Q2 earnings

- H1 2023: Net sales were VND14.9tn (USD632mn; +7% YoY), completing 48% of our full-year forecast and in line with our expectation. Meanwhile, FRT’s H1 2023 net loss was VND224bn (USD9mn; vs H1 2022 NPAT-MI of VND211bn) — greater than our forecasted full-year 2023 loss of VND40bn. As such, we see an upside risk to our full-year net loss forecast, pending a fuller review. Based on our estimates, electronics chain FPT Shop had a net loss of VND305bn (USD13mn), which was partly offset by pharmacy chain Long Chau’s (LC) NPAT-MI of VND82bn (USD3mn).

- Q2 2023: FRT’s net revenue dropped by 8% QoQ to VND7.2tn (USD304mn). The company posted a larger net loss of VND219bn (USD9mn) vs its net loss of VND5bn (USD215,013) in Q1 2023, which was mainly dragged by a greater loss from FPT Shop.