Vietnam’s largest coffee chain Highlands Coffee posts $41M in profit
In this article (5)
Vietnam’s largest coffee chain Highlands Coffee posted an EBITDA of VND1.05 trillion (US$41 million) last year, up 4.5% from 2023.
The chain contributed 36% of the EBITDA from coffee and tea of its parent company Jollibee Foods Corporation. EBITDA stands for earnings before interest, taxes, depreciation, and amortization.
An average store posted VND16 million in revenue per day.
Same-store sales, however, declined by 3.7% year-on-year. The figure measured stores’ sales that had been operating for at least 15 months.
Highlands Coffee, by the end of last year, operated 850 outlets in Vietnam and other countries.
The brand was established in 1999, starting with sales of packaged coffee products in Hanoi. In 2002, Highlands Coffee expanded into the coffee chain model with its first store in Ho Chi Minh City.
In 2012, Highlands Coffee was acquired by Jollibee Foods Corporation, a Philippines-based restaurant conglomerate.
At the end of 2016, JFC and its partner, Vietnam Thai International Company, planned to list Highlands Coffee on the Vietnamese stock market. However, this intention has yet to materialize.
Highlands Coffee has thrived by focusing on widespread coverage. Their strategy revolves around offering a streamlined menu while expanding into office buildings, apartment complexes, street-front locations, and shopping centers.
Vietnam’s beverage store revenue last year was estimated at VND118.26 trillion, a 13% increase from the previous year, according to a report by iPOS, which provides digital management solutions to over 100,000 businesses.
This marked the highest revenue and the fastest growth rate since 2018.
Questions & Answers
Q.What was the total profit for Highlands Coffee last year and how does it compare to the previous year?
What was the total profit for Highlands Coffee last year and how does it compare to the previous year?
Highlands Coffee posted an EBITDA of US$41 million last year. This figure represents a 4.5% increase compared to the EBITDA recorded in 2023. The company contributed a significant portion to its parent company's coffee and tea EBITDA.
Q.How many outlets does Highlands Coffee currently operate and in which locations?
How many outlets does Highlands Coffee currently operate and in which locations?
By the end of last year, Highlands Coffee operated 850 outlets. These stores are located across Vietnam and in other unspecified countries. The brand focuses on widespread coverage to thrive in the market.
Q.What is Highlands Coffee's strategy for growth and expansion?
What is Highlands Coffee's strategy for growth and expansion?
Their strategy centres on offering a streamlined menu and expanding into various locations. These include office buildings, apartment complexes, street-front sites, and shopping centres. This approach aims for widespread market coverage.
Q.Did Highlands Coffee's existing stores perform as well as their overall profit increase suggests?
Did Highlands Coffee's existing stores perform as well as their overall profit increase suggests?
No, despite the overall profit increase, same-store sales declined by 3.7% year-on-year. This figure tracks sales from stores that have been operational for at least 15 months, indicating a drop in individual store performance.
Reader pulse
What's key to Highlands Coffee's success?
15,874 votes so far