According to a recent business report from Masan Group (MSN), its subsidiary Phuc Long Heritage, owner of the eponymous tea and coffee chain, achieved a Q4/2025 revenue of 518 billion dong, a 24% increase compared to Q4/2024. Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached 100 billion dong, an improvement of over 12%. Both figures represent record highs since Masan consolidated the chain in early 2022.

For the full year 2025, Phuc Long's accumulated revenue reached 1,891 billion dong, a nearly 17% rise from the previous year. This also marks the highest revenue reported since information became public. However, the company fell short of its annual revenue target, which was projected to be between 1,910 and 2,200 billion dong.

Net profit after tax before minority interest (NPAT Pre-MI) soared to 195 billion dong, 1.6 times higher than the same period last year. This is the largest profit figure Phuc Long has recorded since its acquisition by Masan. The net profit margin exceeded 10%, indicating that for every 10 dong in sales, one dong was profit.

Management attributed the improved business results to several factors: an increase in delivery orders, a higher average transaction value from food products, and enhanced average daily revenue per store following a brand repositioning campaign over the past year.

Phuc Long reported robust growth in revenue from its food product segment, which includes bread, pastries, ice cream, and yogurt. This category saw a 39.5% increase compared to the same period in 2025. By the end of the year, food products accounted for nearly 8% of retail revenue.

Revenue from the delivery channel also increased by 35% year-on-year, contributing over 31% to total retail revenue. In 2025, Phuc Long opened 19 new stores, expanding its total number of independent outlets (outside the WinMart system) to 202 nationwide. The average daily revenue per store reached 22.8 million dong, a 6% increase from the same period.

Some new drinks and pastries from Phuc Long for Tet 2026. *Photo: MSN*

Masan first invested in Phuc Long in 5/2021, spending USD 15 million for a 20% stake, valuing the company at USD 75 million. Just one year later, Phuc Long's valuation surged sixfold to nearly USD 450 million after Masan acquired an additional 65% stake for over 6,100 billion dong.

Masan Group aims to establish Phuc Long as Vietnam's leading tea and coffee company through rapid store expansion. Initially, their strategy involved opening 1,000 kiosk models integrated into the WinMart system. However, Masan acknowledged in its 2022 annual report that this strategy "did not meet initial expectations." Consequently, hundreds of kiosks were closed from the second half of 2022, with the focus shifting to flagship stores.

Starting in 2023, analysts considered Phuc Long's restructuring process a potential factor impacting the business performance of both the consumer goods segment and Masan Group. Additionally, the chain faced challenges from a broader trend of reduced consumer spending.

During the launch of the new brand identity, Patricia Marques, general director of Phuc Long Heritage, likened Phuc Long to a dynamic 30-year-old who has overcome difficulties. She expressed confidence that the chain has emerged stronger and is "ready to embrace new things."

For the current year, Phuc Long targets a revenue increase of 22-32%, aiming for 2,300-2,500 billion dong. EBITDA is projected to improve by 5-15%, reaching approximately 370-418 billion dong.

The chain plans to further increase the proportion of food products to about 11% of total revenue. Concurrently, Phuc Long will expand its presence in Hanoi with 40-50 new stores, intending to improve average daily revenue and payback periods.

Tat Dat