Tea chain Phuc Long reaps profits of $8.26M

Phuc Long, which opened 25 new stores in the last quarter of 2022, bringing its total to 132, raked in revenues of roughly VND1.58 trillion ($66.95 million), a contribution of 2% of the parent company’s revenue. The enterprise also made up 1.3% of Masan’s total profits.

According to Masan management, Phuc Long’s revenues were number one and two in the Vietnamese bubble tea industry in terms of profit margins and revenues, respectively.

Phuc Long expects net revenues of VND2.5-3.0 trillion this year, up 58-90% against last year, mainly thanks to the opening of some 90 new stores.

Masan first bought shares of Phuc Long in May 2021, spending $15 million to hold a 20% stake in the company. The conglomerate spent a total of VND6.1 trillion on two share purchases in 2022, bringing its total ownership of the firm to 85%.

Masan hopes to make Phuc Long the number-one tea and coffee chain in Vietnam over the next few years, and the chain plans to start operations overseas in 2024 or 2025.