Pharmacity chain reports $11.5 million in net loss in 2019

May 02, 2020 | 21:14
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Rapidly extending the sales network of Pharmacity has burned most of the company's investment capital, resulting in a loss of VND265 billion ($11.5 million) in 2019.
pharmacity chain reports 115 million in net loss in 2019
Pharmacity chain reports $11.5 million in net loss in 2019

Pharmacity has just reported on the use of capital which was mobilised through bonds in 2019. The chain has already spent 80 per cent, equivalent to VND121 billion ($5.2 million) of the total VND150 billion ($6.5 million) mobilised by bonds for opening new stores and their working capital.

Last year, Pharmacity reported VND265 billion ($11.5 million) in net losses, which aligns with the plan set forth. The revenue of the company is not revealed in the report, however, a representative of the chain said in early 2020 that revenue in 2019 rose by 129 per cent on-year to around VND487 billion ($21.2 million).

In parallel with extending its network, Pharmacity has been repeatedly mobilising capital. In early-2020, the chain raised VND730 billion ($31.8 million) in a Series C funding round, the biggest funding ever in the firm's history.

Particularly in 2020, Pharmacity plans to open 350 new stores and hit the target of 1,000 stores across the nation by the end of November 2021, while its revenue is expected to increase by 230 per cent.

Chris Blank, founder and CEO of Pharmacity, said that the company's inventories were not enough to cover market demand, which obstructed expansion plans. This issue Pharmacity overcame by entering into a collaboration with DH Logistic Property Vietnam Co., Ltd., a logistics facility developed by Japan's Daiwa House Group, to launch a delivery hub in Loc An Industrial Zone (Dong Nai province).

This facility allows Pharmacity to open one new store each day from this April onwards.

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