PRESS RELEASE: VINCOM RETAIL ANNOUNCED BUSINESS AND FINANCIAL RESULTS FOR THE FOURTH QUARTER OF 2020
On 28 January 2021, Vincom Retail Joint Stock Company (Vincom Retail, ticker “VRE”) released its unaudited consolidated financial statements of the fourth quarter of 2020 (4Q2020) prepared in accordance with Vietnamese Accounting Standards (VAS).
In the fourth quarter, Vincom Retail recorded a continued recovery in business operations thanks to the successful containment of Covid-19 in Vietnam and the economy maintaining positive growth.
In particular, total consolidated net revenue in 4Q2020 was VND 3.253trillion, an increase of 16.8% year-on-year and 84.8% quarter-on-quarter. Revenue from leasing activities and rendering of related services was VND 1.645 trillion, maintaining its recovery momentum from the third quarter with an increase of 2.3% quarter-on-quarter. Revenue from sale of inventory properties was VND 1.547 trillion, an increase of 1,347.7% quarter-on-quarter, and mostly came from the delivery of two major shop-house projects namely My Tho and Bac Lieu. Profit after tax was VND 975 billion, an increase of 10.3% year-on-year and 70.3% quarter-on-quarter.
In 2020, total consolidated net revenue was VND 8.329 trillion, equivalent to 90% of 2019. Revenue from leasing activities and rendering of related services was VND 6.008 trillion, equal to 85.6% of the previous year. Revenue from sale of inventory properties was VND 2.149 trillion, an increase of 6% compared to 2019. Profit after tax was VND 2.382 trillion, equivalent to 83.5% of 2019.
Whilst the global retail industry witnessed an unprecedented setback due to the Covid-19, the retail industry in Vietnam enjoyed a gradual rebound since the third quarter thanks to the successful containment of Covid-19. Vincom Retail has also implemented suitable strategies including strict social distancing and hygiene control at all Vincom retail malls to prevent contagion and to provide a safe shopping environment to the customers. In addition, Vincom Retail was amongst the first to implement promotional campaigns and other measures to tenants in this difficult period with a total support package of VND 865 billion disbursed in 2020. This policy has proven its effectiveness and contributed to the strong recovery of Vincom Retail in the last two quarters of the year.
At the end of 2020, Vincom Retail continuously organized promotional campaigns to enhance the customer experience across our network to celebrate Vietnamese Women’s Day, Black Friday, Christmas and New Year Festival. Especially, Vincom Mega Mall Ocean Park opened in the fourth quarter of 2020 and became the most attractive destination during the year end with a series of exciting opening events, music festivals, and attractive promotions with nearly VND 20 billion worth of gift vouchers from Vincom.
As of the end of 2020, Vincom Retail had 80 retail malls under operation in 43 cities and provinces throughout the country, with approximately 1.7 million sqm of total retail GFA. The Company continues to be in the Top 10 leading brands in Vietnam 2020 voted by Forbes Magazine, maintaining its leading position as the largest retail developer, owner and operator in Vietnam.
In 2021, Vincom Retail expects to open two new mega malls namely Vincom Mega Mall Smart City (Hanoi) and Vincom Mega Mall Grand Park (Ho Chi Minh City). Especially, the Company will also launch a new product at the “24/7 Entertainment City” of Grand World Phu Quoc within the Phu Quoc United Center complex.