Mobile World Investment Corporation (MWG) has just announced its financial report for the first quarter of 2024, with net revenue reaching VND 31,486 billion, an increase of more than 16% over the same period last year, completing 25% of the annual revenue plan. After deducting expenses, MWG’s net profit was VND 902 billion, 43 times higher than in the same period of 2023, the highest level in 6 quarters since Q3/2022.
According to MWG, the main growth driver is the electronics industry sector, with double-digit revenue growth, especially air conditioners, which increased by about 50% compared to the same period. The gross profit margin of the two TGDĐ/ĐMX chains showed an improvement in Q1/2024 due to the electronics industry contributing more to total revenue, while this is the product group that has a stable profit margin.
For Bach Hoa Xanh, revenue in the first quarter reached more than VND 9,100 billion, up 44% over the same period. Average revenue reached VND 1.8 billion/store/month, with revenue growth driven by both fresh food and FMCGs. The average number of transactions reached about 500 invoices/store/day, an increase of 40% and the average value/invoice increased slightly compared to the same period.
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. Thus, in March, MWG closed 5 Dien May Xanh stores and 2 Bach Hoa Xanh supermarkets, and opened 2 new Erablue stores in Indonesia.
In 2024, MWG’s management expects overall consumer spending demand to be relatively flat, or even decline compared to 2023 for some non-essential items. However, with a healthy financial foundation and a leaner “body” after restructuring, Chairman of the Board of Directors Nguyen Duc Tai said that the business is ready to cope with market fluctuations, and has the resources and determination to actualize the revenue target of VND 125,000 billion and after-tax profit of VND 2,400 billion in 2024.
MWG’s ambitious plan is well-founded as this retail business has already achieved more than 25% of its revenue plan and nearly 38% of its annual profit target after just the first quarter of the year.
