Phuc Long is about to receive a credit of 350 billion VND from Techcombank

The Board of Directors of Vietnam Technological and Commercial Joint Stock Bank (Techcombank, HoSE: TCB) has just passed a resolution approving a VND100 billion credit facility for Phuc Long Heritage Joint Stock Company (PLH) to supplement working capital for production and business activities. The term of the credit is 12 months.

In addition, Techcombank also provided an additional credit of VND 250 billion to Phuc Long with a term of 24 months to finance long-term expenses to invest in network expansion, serving production and business activities.

At any time, Phuc Long's credit balance does not exceed 350 billion VND.

A member of Masan Group, The Sherpa Company Limited is the guarantor for Phuc Long's loan at Techcombank. This enterprise will bear all of Phuc Long's financial obligations arising from the credit contracts signed between Phuc Long and Techcombank.

Last year, Techcombank also provided a credit limit of VND350 billion to Phuc Long, all short-term loans with a term of 12 months.

Regarding the business results of the first quarter of 2023, the revenue of Phuc Long chain of stores increased by 6.2% compared to the same period last year thanks to the opening of more flagship stores. However, the chain's profit decreased due to low revenue/flagship store and ineffective kiosk operation.

Finance - Banking - Phuc Long is about to receive a credit of 350 billion VND from Techcombank — Phuc Long kiosk model.

PLH's flagship store revenue in the first three months of the year recorded VND311 billion, up 11.8% year-on-year. However, EBITDA margin (Earnings before interest, taxes, depreciation and amortization) decreased due to a decrease in revenue/store.

In the first quarter, Phuc Long continued to close underperforming kiosks and is testing the "Hub-and-spoke" model for kiosks with some positive initial results.

Previously, Masan admitted that the kiosk model testing process did not meet initial expectations, so it decided to close 150 kiosks in the second half of 2022.

Phuc Long has grown strongly since becoming part of the Masan ecosystem since the second quarter of 2021, currently ranking second in revenue and number one in profit margin in terms of the flagship model (excluding kiosk chains) .

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