Highlands Coffee posts first loss in 8 years
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Highlands Coffee chain lost VND19 billion ($812,069) last year, its first loss since 2014, VnExpress has learned.
Its sales plunged by nearly 20 percent to VND1.7 trillion, which still made it the largest coffee chain in Vietnam, its earnings report, recently acquired by VnExpress, shows.
It is not listed on the stock market, and typically such companies do not make public their financial reports.
Highlands faced many issues with landlords who accused it of delaying rent payments of over VND1 billion for up to six months.
It had admitted at the time, when social distancing restrictions were still in place, that it was facing financial difficulties.
Highlands Coffee was established in 1999 to sell packaged coffee. It started opening cafes in 2002, and now has 522 of them, according to its website.
It was acquired by the Philippines’ Jollibee Foods in 2012.
Questions & Answers
Q.What was the main financial result for Highlands Coffee last year?
What was the main financial result for Highlands Coffee last year?
Highlands Coffee reported a loss of VND19 billion ($812,069) last year. This was the first time the chain had posted a loss since 2014, according to its earnings report.
Q.How did Highlands Coffee's sales perform compared to previous years?
How did Highlands Coffee's sales perform compared to previous years?
Its sales decreased by nearly 20 percent last year, reaching VND1.7 trillion. Despite this drop, the company maintained its position as the largest coffee chain in Vietnam.
Q.What issues did Highlands Coffee encounter with landlords?
What issues did Highlands Coffee encounter with landlords?
Landlords accused Highlands Coffee of delaying rent payments exceeding VND1 billion for up to six months. The company had previously acknowledged financial difficulties during social distancing restrictions.
Q.When was Highlands Coffee established and who owns it now?
When was Highlands Coffee established and who owns it now?
Highlands Coffee was established in 1999 to sell packaged coffee and began opening cafes in 2002. The Philippines’ Jollibee Foods acquired the company in 2012.
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