Pizza 4Ps loss doubles to $1.66 million
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Pizza 4Ps racked up a net loss of VND38 billion ($1.66 million) last year, as it struggled to recover from Covid-19 hits.
The chain, produces pizzas, cheese and other dairy products, had posted its first ever loss of VND20.8 billion in 2020.
Before the pandemic hit, the chain earned profits of over VND50 billion in 2018 and 2019.
Pizza 4Ps charter capital has also fallen to 28 percent to VND98 billion, driving its debt-to-capital ratio up from 0.66 to 1.99.
It issued bonds worth VND21 billion last year to build new outlets and a cheese factory.
Founded in 2011 by a Japanese couple, Pizza 4Ps has 25 outlets in HCMC, Hanoi, Da Nang, Hai Phong and Nha Trang.
Questions & Answers
Q.What was the financial performance of Pizza 4Ps before the pandemic affected its business operations?
What was the financial performance of Pizza 4Ps before the pandemic affected its business operations?
Before the pandemic, Pizza 4Ps was consistently profitable. The chain recorded profits exceeding VND50 billion in both 2018 and 2019, indicating a healthy financial state prior to the downturn. It had never posted a loss before 2020.
Q.How has the debt-to-capital ratio changed for Pizza 4Ps, and what does this signify for its financial stability?
How has the debt-to-capital ratio changed for Pizza 4Ps, and what does this signify for its financial stability?
The debt-to-capital ratio for Pizza 4Ps has risen significantly, from 0.66 to 1.99. This increase suggests the company is relying more heavily on debt financing relative to its equity, potentially indicating a higher financial risk.
Q.What strategic investments did Pizza 4Ps make last year despite experiencing financial losses?
What strategic investments did Pizza 4Ps make last year despite experiencing financial losses?
Despite its losses, Pizza 4Ps issued bonds worth VND21 billion last year. This funding was specifically allocated to support the construction of new restaurant outlets and to establish a new cheese factory, indicating an investment in expansion.
Q.Where are the existing outlets of Pizza 4Ps located across the country?
Where are the existing outlets of Pizza 4Ps located across the country?
Pizza 4Ps operates 25 outlets across several major cities in Vietnam. These locations include Ho Chi Minh City, Hanoi, Da Nang, Hai Phong, and Nha Trang, providing a broad geographic presence for the chain.
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