The An Khang pharmacy chain has lost an estimated VND3 billion ($130,430) in the first quarter, causing a loss of VND1.4 billion ($60,870) to Mobile World Group.
|An Khang pharmacy made some losses after merging with Mobile World |
According to the consolidated financial statement for the first quarter of 2020 of Mobile World Investment Corporation (MWG), the company has suffered a loss of VND1.4 billion ($60,870) after its 49 per cent interest in An Khang Pharmaceutical Co., Ltd. (originally Phuc An Khang) in the first quarter. This means that An Khang has lost around VND3 billion ($130,000) in the first quarter.
Thus, two years after the acquisition, MWG lost VND7 billion ($304,350) on the An Khang pharmaceutical chain, calculated by its ownership ratio in the company. Thus, the total losses of An Khang are estimated at around VND14.3 billion ($621,740) over the last two years.
MWG announced the acquisition of An Khang at the end of 2017, when the market of mobile phones and electronics was reaching the saturation point. However, MWG decided to contribute 49 per cent of the shares, equivalent to VND62 billion ($2.7 million), according to MWG's financial statement.
According to market researcher Business Monitor International (BMI), the scale of the pharmaceuticals market is projected at $5.3 billion. Of this, hospitals make up 70 per cent of the market share, and only 30 per cent belongs to retailers (pharmacies), equalling $1.6 billion for about 57,000 pharmacies across the country.
In addition to mobile phones, pharmaceuticals are the second promising sector for FPT Retail (FRT). After successfully operating the Long Chau pharmacy chain, FRT expected to expand to 220 stores across the country. Operating pharmaceutical since the end of 2018, this arm gained VND511 billion ($22.2 million) in revenue, equivalent to 3 per cent of the parent company's net revenue in 2019. This chain also opened new 50 stores, raising the number to 70.