New and renovated stores lift Phuc Long Coffee & Tea’s full-year revenues

Phuc Long Coffee & Tea will continue to modernise its stores over the next 12 months in a bid to broaden its customer base | Photo credit:Masan Group

New outlets and a store refurbishment programme have delivered strong fourth quarter and full-year sales growth for Phuc Long Coffee & Tea, parent company Masan Group has said.  
 

Reporting on the three months ending 31 December 2024, Masan Group said the coffee chain’s net revenues grew 11.5% year-on-year to VND 417bn ($16.6m). Despite fourth quarter sales falling 2% on the previous quarter, Phuc Long Coffee & Tea’s full-year revenues increased 5.6% year-on-year to VND 1.62trn ($64.6m). 

Phuc Long Coffee & Tea’s net profit after tax reached VND 28bn ($1.1m) in the fourth quarter and VND 97bn ($3.8m) for the full year.  

In a press release, Masan Group said Phuc Long Coffee & Tea’s sales growth was driven by 33 net new stores last year and a strong performance from renovated sites. Meanwhile, 11 stores refurbished in the second half of 2024 achieved a 13% improvement in average daily sales compared to non-renovated outlets. Phuc Long Coffee & Tea currently operates over 180 outlets across Vietnam. 
 

The refurbishment programme comes after Phuc Long Coffee & Tea refocused its expansion strategy in the first quarter of 2024 to new flagship stores – a move which saw the coffee chain close underperforming kiosk concessions. 

Phuc Long Coffee & Tea, which appointed former Starbucks General Manager Patricia Marques as its new CEO in November 2024, will continue to modernise its stores over the next 12 months to ‘redefine its value proposition’ and broaden its customer base. 

The Ho Chi Minh City-based coffee chain will also invest in national and local marketing campaigns in a bid to drive significant like-for-like sales growth and improve profit margins. 

Masan Group is forecasting Phuc Long Coffee & Tea’s revenues will grow at least 18% year-on-year to VND 1.9bn ($76.1m) in 2025 and could reach VND 2.2bn ($87.7m) – 36% year-on-year growth, if achieved. 

Masan Group acquired an initial 20% stake in Phuc Long Coffee & Tea in May 2021 for $15m and increased its majority stake to 84% in August 2022 – raising the chain’s value to $453m.  

The Ho Chi Minh City-based retail conglomerate, which also operates the WinMart supermarket chain and Wintel financial services platform, posted fourth quarter revenues of VND 22.6trn ($903m), with full-year sales reaching VND 83.2trn ($3.3bn).