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- MWG reports positive financial results.
- The company closed many stores and laid off a large number of employees.
- The senior management team also waived their compensation.
A few days ago, Mobile World Investment Corporation (code: MWG) released its business report for the first six months of the year, with surprising figures.
Accordingly, in June, the company achieved a record-high revenue of VND 13,381 billion. For the first six months of the year, the company’s total estimated revenue reached VND 65,621 billion, a 16% increase compared to the same period last year. The company’s after-tax profit was VND 2,075 billion, a nearly 55-fold increase compared to the profit of only VND 39 billion in Q2/2023.
Thus, after six months, the company has achieved 52% of its annual revenue plan and 86% of its profit plan.
In the first half of 2024, Bach Hoa Xanh reached VND 19,400 billion, the highest ever achieved by this grocery chain.
In the second quarter, the company also closed hundreds of stores belonging to The Gioi Di Dong, An Khang Pharmacy, and Dien May Xanh chains. Along with the store closures, The Gioi Di Dong laid off nearly 1,100 employees in three months, reducing its workforce to nearly 59,500 people.
One of the notable points in Mobile World’s financial report is the information regarding the income of the company’s leaders. Usually, with such positive financial results, the management team would receive substantial salaries and compensation. However, many were surprised to learn that the opposite was true for MWG.
Accordingly, in the first six months, Mr. Nguyen Duc Tai – Chairman of the Board of Directors, Mr. Tran Huy Thanh Tung – CEO and Board member, and Mr. Doan Van Hieu Em – Board member, did not receive any compensation. In the same period last year, their compensation was VND 226.3 million, VND 160.8 million, and VND 580.5 million, respectively.
Only two members of Mobile World’s management team received compensation: Mr. Dang Minh Luong and Mr. Robert Willett – Board members of the company. Both members experienced significant increases in their income during the first six months of the year.
Specifically, Mr. Luong’s income increased by over 80% compared to the previous year, reaching over VND 785.6 million. Meanwhile, Mr. Robert Willett’s income increased by nearly VND 410 million to VND 1.52 billion. Mr. Robert Willett also had the highest income among the board members, earning nearly VND 254 million per month on average.
As of June 30, MWG’s total assets reached nearly VND 65,870 billion, an increase of over VND 5,600 billion compared to the beginning of the year.
Of this, owner’s equity accounted for VND 26,477 billion. The company’s payables increased from VND 36,752 billion to over VND 39,393 billion, including short-term debt of VND 33,260 billion, comprising VND 16,897 billion in short-term loans, a reduction of over VND 3,000 billion compared to the beginning of the year.
Long-term debt was over VND 6,133 billion, a slight increase from the beginning of the year, mainly comprising long-term loans of VND 1,132 billion.
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