In the first six months of this year, net revenues for Con Cung, which owns the largest mother and baby store chain in Vietnam, rose 37 percent year-on-year to VND1.02 trillion ($44 million).

However, a sharp increase in expenses, especially the cost of goods sold which came up to around 25 percent of revenue, and a surge in financial costs drove after-tax profits of the corporation down.

Cost of goods sold during this period rose to VND255 billion ($11 million) from VND173 billion ($7.45 million) last year, while financial expenses rose to VND14 billion ($603,000) from VND6 billion ($258,000). Payments to staff and outsourcers also rose signficiantly, Con Cung management said.

As of June 30, the company had a total capital of approximately VND900 billion ($38.75 million), with liabilities accounting for over 77 percent.

In the first half of the year, the company incurred new long-term debt of nearly VND100 billion ($4.3 million) from bonds issued to supplement working capital and expand production.

According to a previous disclosure,  Con Cung plans to have 1,000 stores within the next three years and annual revenues of VND10 trillion ($431 million). It currently has 400 stores in 45 provinces and cities.