Phuc Long Heritage Posts Record Q1 Revenue and EBITDA, Second Consecutive Quarter

Overview

Phuc Long Heritage, a subsidiary of Masan Group (MSN), reported record Q1 revenue of VND 569 billion (+34% YoY) and EBITDA of VND 118 billion (+46% YoY), marking the second consecutive quarterly record. The strong performance was driven by a 67% increase in delivery channel revenue and improved store productivity, signaling a successful turnaround after the chain’s restructuring.

Key Facts

• Q1 2026 revenue reached VND 569 billion, a 34% increase year-on-year, the third consecutive quarterly record.
• EBITDA hit VND 118 billion, up 46% YoY, the highest since Masan consolidated Phuc Long in early 2022.
• EBITDA margin improved to 20.8% in Q1 2026.
• Net profit after tax (before minority interest) rose approximately 1.6 times YoY, with net profit margin at 10.3%.
• Delivery channel revenue surged over 67% and contributed nearly one-third of retail sales.
• Phuc Long opened 3 new standard stores in Q1, bringing the total network outside WinCommerce to 205 points of sale.
• The chain targets opening 40-50 new stores in 2026, with acceleration in the second half of the year.

What Happened

Masan Group (MSN) released its Q1 2026 business results, showing that its subsidiary Phuc Long Heritage achieved record quarterly revenue of VND 569 billion, up 34% year-on-year. EBITDA reached VND 118 billion, up 46% YoY, marking the second consecutive quarterly record. The company stated that growth was driven by an expanded delivery channel and improved store productivity.

Delivery channel revenue increased by more than 67% and now accounts for nearly one-third of Phuc Long’s retail sales. The chain has deepened partnerships with delivery platforms to increase coverage. Beverage revenue grew nearly 33%, representing about 86% of retail sales, reflecting better store operations and customer experience. Food categories (bread, pastries, ice cream, yogurt) remained stable at around 8% of retail sales, supporting basket size and consumption occasions.

Market Context

Masan Group (MSN) closed at VND 77,000 on April 15, 2026, down 0.64% with volume of 3.35 million shares. The stock trades on HOSE. Phuc Long’s strong results come after a period of restructuring that began in 2022, when Masan acknowledged that its initial strategy of integrating 1,000 kiosks into WinMart stores “did not meet initial expectations.” The chain closed hundreds of kiosks from H2 2022 and shifted focus to standard stores. The turnaround is now evident in consecutive record quarters.

Strategic Significance

Phuc Long’s sustained recovery is strategically important for Masan Group as it diversifies the conglomerate’s consumer retail platform beyond its core WinCommerce network. The chain’s focus on standard stores and delivery channels has proven effective, with delivery now contributing nearly a third of retail sales. Masan’s initial investment in Phuc Long in 2021 valued the chain at USD 75 million; by 2022, after acquiring an additional 65% stake for over VND 6,100 billion, the valuation had risen to nearly USD 450 million. The current trajectory supports Masan’s ambition to make Phuc Long the leading tea and coffee company in Vietnam.

What to Watch

• Phuc Long’s store expansion progress toward the 40-50 new store target for 2026, particularly in H2.
• Sustainability of EBITDA margin above 20% as the chain scales.
• Contribution of Phuc Long to Masan Group’s consolidated consumer retail segment earnings.
• Any further strategic updates from Masan regarding Phuc Long’s long-term positioning or potential IPO.