Vincom Retail posts pre-tax profit of US$30.7 million

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Nguyen Tung 11:16, 2018/04/30

Vincom Retail, a subsidiary of the VinGroup Corporation, posted its pre-tax profit in first quarter at VND702 billion (US$30.7 million), down VND63 billion (US$2.76 million) or 8% year on year.

From January to March, the consolidated revenue of the mall operator reached VND1.6 trillion (US$70.2 million), increasing 16% compared to the same period of last year, said the mall operator in its quarterly consolidated financial report.

Illustration photo.

Consequently, revenue from real estate for lease and related services reached VND1.26 trillion (US$55.25 million), up 20% compared to previous year, while the number from properties transfer is estimated at VND335 billion (US$14.7 million), up 7% year on year.

Vincom Retail was founded in 2012 to develop modern retail channels and operations, becoming a private company a year later. After starting out with three malls, it now has three subsidiaries and 46 malls operating on four platforms: Vincom Center, Vincom Mega Mall, Vincom+ and Vincom Plaza. The company plans to have 200 malls by 2021. Vincom Retail currently has shopping centers in 24 cities across Vietnam with a gross retail floor area exceeding 1.1 million sq. meters.

They account for 60% of retail space in Hanoi and Ho Chi Minh City, according to research by Colliers International. The existing prime assets of Vincom Retail include Vincom Dong Khoi and Vincom Thu Duc in HCM City, Vincom Ha Long in Quang Ninh Province, Vincom Ngo Quyen in Da Nang City, and Vincom Ba Trieu, Vincom Long Bien, Vincom Mega Mall Royal City and Vincom Mega Mall Times City in Ha Noi. Vincom Retail competes with Japan's Aeon and Takashimaya, France's Auchan, South Korea's E-Mart and Lotte, Malaysia's Parkson, Thailand's Robinson and Big C and Vietnam's own Co.opMart.

Last November, FinanceAsia Award - one of the most prestigious awards in finance has announced its annual Achievement Awards winners with the outstanding deals by category across the region. As such, with Vincom Retail completed its 740 million USD initial equity offering and made its debut on the HO Chi Minh City Stock Exchange (HOSE), the shopping mall operator under Vietnam's leading property developer Vingroup has been honored by the FinanceAsia magazine as "The Best Private Equity Deal" in 2017.

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