Digiworld Corporation (Digiworld, code: DGW) has announced consolidated financial report for the first quarter of 2024 with net revenue of VND 4,985 billion, an increase of 26% compared to the same period last year. After deducting cost of goods sold, DGW’s gross profit was over VND 388 billion, an increase of 49%.
All business segments recorded growth, including consumer goods increased by 53%, office equipment increased by 48%, mobile phones increased by 29% (contributing 49% to total revenue), household appliances increased by 27%, and laptops & tablets increased by 4% (contributing 23% to total revenue).
During the period, various expenses increased, such as selling expenses which increased by 81% to VND 214 billion, and corporate management expenses also increased by 20% to VND 55 billion.
As a result, DGW’s net income reached over VND 93 billion in the first quarter of 2024, an increase of 16%, and achieved 19% of the annual plan.
At the 2024 Annual General Meeting of Shareholders on 25/4, DGW’s management team set ambitious business targets for 2024, with net revenue and net income reaching VND 23,000 billion and VND 490 billion respectively, representing increases of 22% and 38% compared to the actual figures for 2023.
Source: DGW
In terms of revenue structure, the focus will still be on mobile phones, which are expected to bring in VND 8,700 billion (an increase of 8%), and laptops and tablets, which are expected to bring in VND 6,550 billion (an increase of 11%). Other activities, including office equipment, household appliances, and consumer goods, are expected to increase by 60%, 44%, and 78%, respectively.
At the end of the first quarter of 2024, DGW recorded total assets of over VND 6,902 billion, a decrease of 8% compared to the beginning of the year, mainly due to a decrease of nearly 60% in cash equivalents, to just nearly VND 518 billion. Inventories decreased slightly to VND 2,945 billion.
On the other side of the balance sheet, total liabilities decreased by 14% compared to the beginning of the year to VND 4,183 billion. Notably, accounts payable to suppliers decreased significantly by 28% to just over VND 1,117 billion. According to the data presented by DGW, accounts payable to suppliers such as Asus Global Pte Ltd, Xiaomi H.K Limited, and other suppliers all recorded decreases.
Another item that decreased significantly was accrued expenses, which fell by 60% to nearly VND 102 billion, mainly due to a decrease in trade discounts and operating expenses, and sales support.
Total financial debt was at VND 2,388 billion, most of which was bank loans.
