Mobile World Investment Corporation (MWG) has just updated its business results for the first 3 months of 2024, with cumulative revenue reaching VND 31,441 billion, up 16.5% year-on-year. Thus, the company has completed 25% of its annual revenue plan.
In March 2024 alone, MWG’s revenue reached VND 9,828 billion, a 23% increase year-on-year.
In the first 3 months, revenue of The Gioi Di Dong and Topzone chains reached VND 6,791 billion, Dien May Xanh chain reached VND 14,526 billion. The total revenue of these chains reached VND 21,300 billion, an increase of about 7% year-on-year.
The main growth driver came from the home appliance sector with a double-digit revenue increase, notably the air conditioner product increased by approximately 50% year-on-year.
According to MWG, the gross profit margin of the two chains TGDĐ and ĐMX both recorded a significant improvement in the first quarter of 2024 due to the home appliance sector increasing its contribution to total revenue, while this is a product group with a stable profit margin. In addition, the advantages of a full product catalog, diverse shopping options with attractive promotions and financial support solutions have been achieved thanks to efforts to consolidate and expand market share in 2023.
The operating efficiency and absolute profit indicators of TGDĐ and ĐMX both recorded positive changes after 6 months of intensive restructuring, reviewing all operational activities towards leanness and efficiency.
Online revenue in the first 3 months reached approximately VND 3,500 billion and accounted for 16% of the total revenue of the two chains.
As for Bach Hoa Xanh, March revenue was recorded at VND 9,149 billion, bringing cumulative revenue for the first 3 months to an increase by 44% year-on-year. Average revenue reached VND 1.8 billion/store/month with revenue growth driven by both fresh food and FMCGs sectors. The number of average transactions reached approximately 500 invoices/store/day, a 40% increase, and the average value/invoice increased slightly year-on-year.
MWG commented that thanks to the restructuring efforts, although revenue increased sharply, expenses were well controlled even during the Tet Lunar New Year peak period. Based on core business activities, Bach Hoa Xanh still maintained its breakeven point after all expenses corresponding to the current operating reality (except for February, which was a special month as the chain had a Tet holiday and did not operate for enough days).
In particular, MWG expects business results in the second quarter of 2024 to improve more positively as average revenue tends to continue to increase in April and Bach Hoa Xanh is closely following its goals of reducing the ratio of operating expenses to revenue, especially logistics costs.
At the end of March, MWG had 1,077 The Gioi Di Dong/Topzone stores, 2,184 Dien May Xanh stores, 1,696 Bach Hoa Xanh stores, 526 An Khang pharmacies, 64 AVAKids stores, and 55 Erablue stores in Indonesia.
Therefore, in March, MWG closed 5 Dien May Xanh stores, 2 Bach Hoa Xanh supermarkets, and opened 2 new Erablue stores in Indonesia.
