Conglomerate FLC reconciles to $84 mln loss in 2020 due to pandemic

By Dat Nguyen June 3, 2020 | 07:00 pm PT

FLC Quy Nhon Resort and Golf in the central province of Binh Dinh. Photo by Shutterstock/NDQ.

With the coronavirus pandemic crippling its core businesses, property and leisure company FLC expects a loss of VND1.96 trillion ($84 million) this year.

It has lowered its revenue target to VND12.5 trillion ($539 million), down 21.5 percent from last year’s figure, according to a company release.

In the first quarter it posted a loss of nearly VND1.9 trillion ($82 million) as resorts and golf courses were closed while its airline, Bamboo Airways, had to suspend most flights.

The company has identified real estate as its main business this year with plans to develop five urban areas and resorts. Last year real estate had accounted for only 14 percent of its revenues.

With domestic flights allowed to go back to their normal schedule, FLC is sticking to its target of claiming a 30 percent domestic market share this year, and also plans to fly to more destinations in East Asia, Europe and the Americas.

However, it has changed its purchase plans and now seeks to expand its fleet to 40 aircraft and not 50.

It still wants to list Bamboo Airways on a Vietnamese stock exchange by the end of the year.

FLC reported revenues of VND15.9 trillion ($685 million) last year, a 32 percent rise, while post-tax profit was up 48 percent to VND696 billion ($30 million).