The latest purchase put Phuc Long’s valuation at $355 million.
Masan, the Vietnamese retail conglomerate, has acquired a 31% stake in tea and coffee chain Phuc Long with a valuation of US$110 million.
The latest purchase put Phuc Long’s valuation at $355 million. Photo: Masan |
After the deal, Masan owns 51% shares of Phuc Long, becoming the parent company of the popular brand in Vietnam, and will consolidate the business results of this system into the financial statements of the group.
The latest purchase put Phuc Long’s valuation at $355 million. The group said Phuc Long increased the price-to-earnings (P/E) ratio by about 15 times is based on preliminary estimated earnings of 2022.
In late May 2021, billionaire Nguyen Dang Quang's group spent $15 million to buy a 20% stake in Phuc Long, equivalent to the valuation of this coffee and milk tea chain at $75 million. After less than a year, the value of Phuc Long has increased by nearly five times.
Masan forecast Phuc Long's revenue of VND3trillion ($132.5 million) in 2022. The group's goal is to bring the milk tea kiosk model into 1,000 retail stores within 12 months. The group also piloted a kiosk model selling coffee and milk tea inside the system of 50 Winmart+ (formerly VinMart+ stores).
This year, the group will continue to replicate the mini-mall model, integrating pharmaceuticals, personal financial products, entertainment services, and telecommunications into shopping services of supermarkets and mini WinMart+.
The group expects its consolidated net revenue to reach between VND90 trillion and VND110 trillion ($3.97 billion and $4.8 billion) in 2022.
Last year, Masan's consolidated net revenue reached more than VND88.6 trillion ($3.9 billion), up 14% compared to 2020. Its profit was VND10.1 trillion ($445.5 million) up more than 6 times over the previous year.
Other News
- Aircraft manufacturer Embraer seeks comprehensive aviation partnership with Vietnam
- Better links with FDI firms to support Hanoi businesses
- Vietnam calls for more US investment in innovation, hi-tech
- Vietnamese leader urges Boeing to build production facility in Vietnam
- Foreign capital pouring into Vietnam's real estate market
- Vietnam news in brief - August 24
- Growing number of FDI firms moving to Vietnam
- Vietnam Gov’t committed to facilitating Adani Group’s US$2-billion port project
- Vietnam Railway proposes US$87 million for Hanoi–Dong Dang railway upgrade
- Vietnam’s North-South high-speed railway to be designed for 350km/h
Trending
-
Vietnam's updated NAP: Progress in climate action
-
Vietnam news in brief - November 20
-
Prime Minister meets world leaders at G20
-
Hang Ma Street gears up for festive season
-
A Hanoi artisan turns straw into appealing tourism product
-
“Look! It’s Amadeus Vu Tan Dan” workshop - an artistic journey for kids
-
Vietnam news in brief - November 15
-
Experiencing ingenious spaces at the Hanoi Creative Design Festival 2024
-
Hanoi Festival of Creative Design 2024: celebrating the capital's cultural innovation