Son Kim Retail subsidiary posts $7 mln loss in 2022

By

Trang Nguyen

Sat, April 8, 2023 | 7:00 am GTM+7

CVS Holdings JSC, a subsidiary of Son Kim Retail under the HCMC-based conglomerate Son Kim Group, reported a loss of VND167 billion ($7.12 million) in 2022, versus a loss of VND153.5 billion in 2021.

CVS Holdings contributed 70% of capital to GS Retail Vietnam Joint Venture Co., Ltd, which owns and operates the GS25 convenience store chain.

A GS25 convenience store in Vietnam. Photo courtesy of GS25.

The company’s equity decreased by more than 41% in 2022, from VND326 billion ($13.9 million) to VND191.5 billion ($8.16 million). The debt to equity ratio increased sharply, from 0.42 to 2.13 after the company had issued bonds.

GS25 Vietnam has garnered attention this year after the brand marked an important milestone of 200 stores in early November.

GS25 Vietnam was launched in 2017. It is based on the GS25 convenience store concept from South Korea, which was brought to Vietnam by two partners – Korean firm GS Retail Co. Ltd. (GSR) and Son Kim Retail, part of Son Kim Group.

The chain’s typical stores are about 150 square meters and include dine-in seating. They also sell fresh food, ready-to-eat, ready-to-cook, and Korean-made products.

GS25 Vietnam currently leases a warehouse of 5,755 square meters in Thu Duc city on HCMC’s outskirts from integrated logistics services provider CJ Korea Express Vietnam. The main items handled are groceries, beverages, livestock, snacks, and health and beauty products.

In mid-December, the World Bank’s investment arm the IFC started considering a new investment of about $20 million into the GS25 convenience store network in Vietnam to drive the chain’s expansion until 2025.