The Coffee House operator continues to rake up losses
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Seedcom, which owns The Coffee House and fashion store chain June, has reported a 14.5% increase in losses to VND270 billion ($11.5 million) last year.
However, revenues rose by 60% thanks to increasing contributions by its fashion and supermarket chains, according to its consolidated financial results.
Since the onset of the Covid pandemic, it has made losses for three straight years.
Seedcom chairman Nguyen Hoanh Tien said that last year’s losses were inevitable because the company expanded its retail networks.
“High-interest rates, rising rents, and increased costs of raw materials and logistics strongly affected the profit margin of the retail industry.”
Last year Seedcom’s liabilities decreased by 16% to VND1.2 trillion. This year it redeemed bonds worth nearly VND250 billion.
It owns delivery companies AhaMove and Giao Hang Nhanh, fashion brands WeStyle, Juno and Hnoss, online retail platform Haravan, and restaurant management solutions provider iPOS.
Questions & Answers
Q.What was the total revenue increase for Seedcom last year and which segments contributed to this growth?
What was the total revenue increase for Seedcom last year and which segments contributed to this growth?
Revenues for Seedcom rose by 60% last year. This increase was primarily driven by growing contributions from its fashion and supermarket chains, as stated in its consolidated financial results.
Q.How long has Seedcom been making losses and what reason did the chairman give for the most recent increase?
How long has Seedcom been making losses and what reason did the chairman give for the most recent increase?
Seedcom has been making losses for three consecutive years since the Covid pandemic began. Chairman Nguyen Hoanh Tien attributed last year's losses to the company's expansion of its retail networks.
Q.What challenges did the Seedcom chairman identify that affected the retail industry's profit margins?
What challenges did the Seedcom chairman identify that affected the retail industry's profit margins?
The chairman, Nguyen Hoanh Tien, highlighted several challenges, including high-interest rates, rising rents, and increased costs for raw materials and logistics. These factors strongly impacted the retail industry's profit margins.
Q.Did Seedcom manage to reduce its financial obligations last year, and what other financial actions did it take?
Did Seedcom manage to reduce its financial obligations last year, and what other financial actions did it take?
Yes, Seedcom's liabilities decreased by 16% to VND1.2 trillion last year. Also, the company redeemed bonds worth nearly VND250 billion this year, further reducing its financial commitments.
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