Coffee House Operator Reports $10 Million Loss

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Seedcom, the operator of The Coffee House beverage chain and June fashion stores, recorded a loss of almost VND240 billion ($10.45 million) last year due to the impacts of Covid-19. 19. The loss increased by almost 24% compared to 2020.

Its debt ratio increased from 26 to 69.5. It had nearly 1.48 trillion dong in debt at the end of the year.

Last year, it raised 50 billion dong in bonds with a coupon rate of 12% per year.

The negative numbers came as most of Seedcom’s businesses, including The Coffee House, Juno and another fashion brand Hnoss, had to close or operate with limited capacity for months due to social distancing.

Last year, The Coffee House launched a kiosk model to focus on selling takeaway food in crowded areas like supermarkets or main roads.

But so far, only two such kiosks have been opened in Ho Chi Minh City, despite CEO Le Ba Nam Anh’s plans to open many such facilities.

Seedcom, established in 2014, also owns delivery companies AhaMove, Giao Hang Nhanh and retail chain Kingfoodmart.

Last year, it ventured into finance by partnering with Thai bank Kvision to provide payment and lending services to small and medium-sized businesses, focusing on cashless finance.

It also sold the agricultural unit Cau Dat Farm, which grows and processes coffee, to Nova Consumer under NovaGroup to focus more on retail.

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