Vincom Retail eyes record revenues

Tran Mai Hoa, its CEO, said at the company’s annual general meeting on Wednesday that the company, which owns 83 shopping malls and plans to build two more, wants to lease out an additional 100,000 square meters by the end of this year to achieve its targets.

The revenue and profit targets, if achieved, will be record highs for the company, but it believes the numbers could go even higher if the business environment is favorable.

Its previous highest were revenues of VND9.2 trillion and profits of VND2.85 trillion in 2019.

When asked about the current worrisome situation in the retail market and plenty of unoccupied space in malls, Mai said Vincom Retail and other players in the market are monitoring the situation carefully.

She said the first quarter is usually slow for retail, and the market recovers in March or April and peaks in summer and onwards.

"We have spoken with many retailers, and all agreed the slump is only short term."

Pham Thi Ngoc Ha, its CFO, said the company’s cost structure is optimized.

The management said it is looking at a retail tourism model in which tourists travel to shop at a local destination.

Asked why the company is not paying dividends for 2022, Ha said it needs the profits to redeem bonds worth VND1 trillion, and another VND12 trillion in the next three years to develop 800,000 square meters of retail space.

First quarter revenue increased by 42% year-on-year to VND1.943 trillion, with the shopping mall business accounting for VND1.9 billion. Profit after tax was VND1.024 trillion, 2.7 times the figure last year and up 23% from the previous quarter.