PRESS RELEASE: VINCOM RETAIL ANNOUNCED BUSINESS AND FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2020
On 27 July 2020, Vincom Retail Joint Stock Company (Vincom Retail, ticker “VRE”) released its unreviewed consolidated financial statements of the second quarter of 2020 (2Q2020) prepared in accordance with Vietnamese Accounting Standards (VAS).
In the second quarter, as Vincom Retail’s business was still heavily affected by the COVID-19, Vincom Retail extended further support of VND 375 billion to tenants. This resulted in the quarter’s negative growth compared to the same period in 2019.
Specifically, total consolidated net revenue was VND 1.630 trillion, equivalent to 82.2% of the same period in 2019; revenue from leasing and rendering related services was VND 1.307 trillion, equivalent to 78.8% of the same period in 2019; revenue from sale of inventory properties was VND 294 billion, corresponding to 97.6% of the same period in 2019. The Company’s profit after tax for the second quarter was VND 343 billion, equivalent to 53.6% of the same period last year.
As of 30 June 2020, Vincom Retail had 79 retail malls under operation in 43 cities and provinces throughout the country, with approximately 1.6 million sqm of total retail GFA, maintaining its position as the leading retail developer, owner and operator in Vietnam.
After social distancing measures were lifted, all Vincom shopping malls officially resumed operation since 23 April 2020. Vincom remains a destination for leading international brands. For example in early June, Uniqlo launch another store in Vincom Center Landmark 81 and Haidilao Chinese hotpot restaurant opened its first location in Hanoi in Vincom Center Pham Ngoc Thach.
In the second quarter, Vincom timely launched campaigns with attractive events across the network to stimulate traffic back to our malls, easing the transition back to dynamic lifestyles. The campaign to celebrate Reunification Day on April 30th [and Labor Day on May 1st] with attractive promotions has increased customer traffic to Vincom retail malls by over 50% compared to the period before the social distancing. The Vincom Summer Campaign in June 2020 created an exciting retail experience with various offers and promotions for young people and families, and also attracted more than 80 million media reach nationwide. By July 2020, malls in Hanoi and Ho Chi Minh City have seen footfall recovered to 70% of the level last year.
In the third quarter of 2020, Vincom Retail will continue to implement measures and activities to maintain its position as a safe shopping and entertainment destination for all customers nationwide.