Con Cung chain owner sharply reduces profits

Con Cung Investment Joint Stock Company, the unit behind the largest mother and baby sales chain in the country, made a profit of nearly 5 billion VND last year.

According to a recent information announcement, Con Cung Investment Joint Stock Company recorded about 4.7 billion VND in profit after tax. This figure decreased by 95% compared to the profit of nearly 90 billion VND in 2021.

Profits decreased but Con Cung's equity increased slightly from 725 billion to nearly 730 billion VND. At the same time, the debt-to-equity ratio also increased to 3.35 times, while the previous year was 2.56 times. By the end of 2022, this enterprise had a total debt of about 2,445 billion VND.

Con Cung has no outstanding bonds. The company has fully paid off two batches of bonds that matured last year. These two batches have a total value of VND115 billion, with an interest rate of 11% per year.

Con Cung Investment Joint Stock Company was established in September 2015 by Mr. Nguyen Quoc Minh and Mr. Luu Anh Tien. This ecosystem consists of three main legal entities: Con Cung Joint Stock Company, Liam Trading Joint Stock Company and Sakura Group Joint Stock Company.

The most prominent is Con Cung Joint Stock Company - the owner of the mother and baby product retail chain of the same name. In addition, this enterprise also develops private label product lines such as Toycity children's toys and CF fashion (Con Cung Fashion). To date, the company has more than 700 Con Cung stores with nearly 6.4 million registered members, the unit with the largest number of stores in the country in the mother and baby industry. This retail chain once announced that it had achieved revenue of more than 3,800 billion VND and after-tax profit of 70 billion VND in 2020. Gross profit margin is maintained at 25-30%.

In early 2022, Asian private equity fund Quadria Capital invested $90 million in Con Cung. The capital was used to expand the scale and network of stores, aiming to open 2,000 mother and baby supermarkets by 2025. At the same time, the investment was also used in the category of developing an application specializing in providing "all-in-one" personalized products and services, based on customer needs.

According to Euromonitor, revenue from mother and baby products in Vietnam reached about VND50,100 billion in 2021 and is expected to grow by about 7.3% per year in the period 2021-2025. Nielsen's report also said that revenue from this market could reach a scale of 7 billion USD with a growth rate of up to 30-40%. However, currently, up to 80% of the market share belongs to small retail stores.

Siddhartha

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