Although Vietnam’s food and beverage market remains highly competitive, Phuc Long Coffee & Tea has delivered strong financial results for 2024. The Vietnamese coffee chain reported full-year revenues of VND 1.62 trillion ($64.6 million), marking a 5.6% increase from the previous year. Fourth-quarter performance was even stronger, with net revenues jumping 11.5% year-on-year to VND 417 billion ($16.6 million).
The company’s store innovations and financial strategies have played an essential role in driving this growth. Phuc Long opened 33 net new stores in 2024, bringing its total outlets to over 180 across Vietnam.
The chain’s refurbishment program proved particularly effective, with 11 renovated stores in the latter half of 2024 generating 13% higher average daily sales compared to non-renovated outlets.
Phuc Long’s dual-model approach combines flagship stores with kiosks placed in WinMart+ convenience stores. This strategy has dramatically expanded the brand’s reach and accessibility.
By mid-2022, the company operated 74 flagship stores alongside 971 kiosks, creating a network of more than 1,000 locations. While the company later closed 84 underperforming kiosks to optimize network performance, the integrated kiosk model continues to provide access to high-traffic retail locations. The kiosks achieved 75% higher average daily sales after introducing a new menu specifically designed for convenience store customers.
The flagship stores have shown impressive performance, with revenues jumping nearly 20% year-on-year to reach $23.4 million in the primary half of 2022. The company’s focus on high-footfall locations has enhanced sales growth across the network. Delivery services integrated with physical outlets have helped meet rising consumer demand for convenience.
Phuc Long’s success is supported by its integration within the Masan Group ecosystem. Masan increased its ownership to 85% and provided capital infusion exceeding VND 3,600 billion to accelerate expansion strategies. This relationship gives Phuc Long access to Masan’s retail channels, logistics, and marketing capabilities.
The company achieved net profit after tax of VND 97 billion ($3.8 million) for 2024, with VND 28 billion earned in the fourth quarter alone. Looking ahead, Masan Group projects ambitious growth targets with revenue growth forecasted to reach at least 18% year-on-year in 2025.
Previously, Phuc Long maintained a net profit margin near 20% in 2021, markedly outperforming typical food and beverage industry margins.
