After two years of losses, Vua Nem chain has turned a profit of 4 billion VND in the first four months of the year, exceeding expectations and matching the profit for the entire year of 2021. The company, Vua Nem Joint Stock Company, announced this profit after tax in their recent information release. The goal for this year is to increase revenue by 13% compared to 2023 and achieve positive profit after tax.
After experiencing losses for two consecutive years, Vua Nem has returned to profitability. The company had negative profits for six years, except for 2021, since revealing information in 2017. The profits earned in the first four months of this year are equal to the profits for the entire year of 2021. In the first four months of the year, EBITDA at the store level increased by 155% compared to the same period in 2023. The company also optimized operating costs to revenue, increasing the gross profit margin by about 12%.
Vua Nem recently paid off all related obligations of a batch of bonds worth 150 billion VND, due at the end of May. This was a capital mobilization subject to a 12.5% interest rate per year, aimed at expanding and investing in the store system to increase operational capital. By paying off the bond principal, the company saved 4.5 billion VND in interest this year. The company’s ecosystem includes the parent company, Vua Nem Investment Joint Stock Company, which owns two subsidiaries managing investments and trading bedding and textile products.
Vua Nem was established in 2007 by a startup group led by Mr. Nguyen Vu Nghia and Mr. Hoang Tuan Anh. Mekong Capital joined and restructured the ecosystem ten years later. The chain currently has 128 stores, making it the largest mattress retail chain in the country, although this number has decreased by 22 compared to the same period last year. Despite dominating the market share in middle and high-end segments, Vua Nem aims to redefine its image as a chain that offers quality mattresses at reasonable prices, eliminating intermediaries in the process. CEO Nguyen Thanh Huyen stated, “Our focus is on developing products with good materials at reasonable prices for consumers.”