The Joint Stock Company Mobile World Investment (MWG) recently announced its updated business results for the first six months of 2024, reporting a 16% increase in net revenue year-on-year, totaling VND 65,621 billion and achieving 52% of the full-year revenue plan.
Regarding Bach Hoa Xanh, Mobile World reported that for the first six months, this mini-supermarket chain achieved VND 19.4 thousand billion in revenue, a 42% increase compared to the same period last year. In June alone, Bach Hoa Xanh’s revenue reached VND 3.6 thousand billion, a nearly 5% increase compared to the previous month. The fresh produce and FMCG categories continued to be the main growth drivers for the chain.
In June, the average revenue per Bach Hoa Xanh store reached VND 2.1 billion. Thus, since March 2024, this figure has consistently increased from VND 1.8 billion to VND 1.9 billion in April, VND 2 billion in May, and VND 2.1 billion in June.
According to MWG’s financial report, Bach Hoa Xanh turned a profit of nearly VND 7 billion in the second quarter, marking the first time it has contributed profits since its inception.
Currently, Bach Hoa Xanh operates a total of 1,701 stores. According to the recruitment fanpage of Bach Hoa Xanh, the mini-supermarket chain will open seven new stores in August, including three in Ho Chi Minh City, two in Dong Nai, one in Binh Duong, and one in Long An.
Looking back at its journey, Bach Hoa Xanh has made a remarkable turnaround thanks to its restructuring process. Founded in late 2015, Bach Hoa Xanh became the topic of interest among Mobile World investors within a year of its operation. At a meeting in November 2016, MWG’s Chairman, Nguyen Duc Tai, shared that he had carefully considered entering the essential goods trading industry, as the total market value was ten times higher than that of the phone and appliance industries.
The Chairman also affirmed that time would prove that Mobile World is not a “charity kitchen” subsidizing Bach Hoa Xanh but that the supermarket chain would be a profitable model.
After three years of operation, Bach Hoa Xanh incurred losses of over VND 550 billion. The management decided to transition from a traditional model to an open-design concept to increase revenue. Both the store area and the number of sales outlets were increased. In 2021, Bach Hoa Xanh had more than 2,100 stores, but its financial situation continued to deteriorate. Since then, the number of stores has gradually decreased year after year.
A Bach Hoa Xanh store in Ho Chi Minh City temporarily closed in 2022. Source: Tien Phong.
At the annual general meeting held in April 2024, Chairman Nguyen Duc Tai pointed out that Bach Hoa Xanh was the first unit to undergo the group’s restructuring process, with the number of stores reduced by up to 900.
