The Mobile World Investment Corporation (MWG) recently released its business report for the first half of 2024. The company’s estimated total revenue for the period was 65,621 billion VND, a 16% increase compared to the same period last year. In June alone, The Mobile World achieved a record-high retail revenue of 13,381 billion VND.
As of the end of June, The Mobile World had closed several stores. Specifically, the number of The Mobile World stores (including Topzone) decreased by 24 compared to the beginning of the month, reaching 1,046 stores. Dien May Xanh also reduced its store count by 87, ending the month with 2,093 stores. An Khang pharmacies also saw a significant decline, with 45 stores closing in June, resulting in a total of 481 pharmacies.
Notably, while other business areas painted a gloomy picture, Bach Hoa Xanh emerged as a bright spot. As of the end of June, the chain operated 1,701 stores, an increase of 3 stores compared to May.
Bach Hoa Xanh’s revenue for the first half of 2024 reached 19,400 billion VND, a 42% growth compared to the same period last year, and accounted for 29.7% of the total revenue structure – the highest proportion ever achieved by this food chain.
In June alone, Bach Hoa Xanh generated 3,600 billion VND in revenue, a nearly 5% increase compared to the previous month of May. Notably, excluding the period affected by Covid-19, Bach Hoa Xanh’s average revenue per store reached a peak of 2.1 billion VND per store per month.
This revenue level exceeded the expectations of MWG’s leadership. Previously, at the first-quarter investor meeting, Bach Hoa Xanh’s CEO, Pham Van Trong, had stated: “With our current scale, the average revenue per Bach Hoa Xanh store will be above 2 billion VND per month.”
According to Bach Hoa Xanh, this achievement was made possible by their strategy from the beginning of the year to focus on revenue growth and cost optimization, particularly in two key areas: store operation costs and logistics costs. Despite consumer spending being assessed as stagnant or only slightly increasing, Bach Hoa Xanh benefited from the continuing shift from traditional to modern channels.
Overall, in the second quarter, Bach Hoa Xanh recorded a profit of nearly 7 billion VND. This was the first time the supermarket chain turned a profit since its inception.
“In the second quarter of 2024, Bach Hoa Xanh’s profit from business operations (and also after-tax profit) reached a positive 7 billion VND. According to our estimates, the operating profit margin of Bach Hoa Xanh in June 2024 was recorded at a positive level and was the highest in the quarter,” analyzed Vietcap Securities Company.
After record low interest rate until 2023, Mobile World (MWG) forecasts a 14-fold profit increase in 2024 but still falls short of the peak period
After a comprehensive restructuring that began in Q4/2023, The Gioi Di Dong believes that the company has the potential to further strengthen its revenue and improve profitability targets.
