At the meeting, MWG updated on its preliminary July business results, reporting revenue of over 11 trillion VND, similar to that of June 2024 and a more than 10% increase compared to July 2023.
Bach Hoa Xanh (BHX) chain contributed over 3.6 trillion VND in revenue, a slight increase from the previous month and a 28% jump from July 2023. The average revenue per store remained at 2.1 billion VND.
Meanwhile, The Gioi Di Dong (including Topzone) and Dien May Xanh chains recorded revenue of over 7 trillion VND, a slight decrease from the previous month due to the peak season for air conditioners and TVs ending after the conclusion of sporting events.
Continuing to focus on reducing operating costs
Looking back at the first six months, the BHX chain accounted for 29.7% of MWG‘s revenue, equivalent to approximately 19.4 trillion VND. In Q2 alone, it contributed 10.3 trillion VND, a 12% increase from the previous quarter.
On a per-store basis, average revenue in Q2 2024 was 2 billion VND, a 43% increase from the same period last year. Fresh produce and fast-moving consumer goods (FMCGs) saw growth rates ranging from 30% to 60% year-over-year. The total number of invoices in the first six months of 2024 increased by 38% compared to the same period last year.
In terms of geographical contribution, stores outside of Ho Chi Minh City accounted for 80-90% of revenue, not differing significantly from the revenue contribution of stores within the city.
Regarding efficiency, the absolute gross profit in Q2 increased by more than 10% compared to Q1, in line with the orientation set at the beginning of the year.
 Source: MWG
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Source: MWG
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Reflecting on the past, Mr. Trong shared that BHX has focused on improving product quality and enhancing the in-store shopping experience, such as expediting the checkout process and optimizing the parking lot to make shopping more convenient.
Additionally, BHX has concentrated on increasing revenue per store to boost absolute profit, while also emphasizing two key actions: reducing operating costs at stores and logistics expenses.
Regarding logistics costs, Mr. Trong mentioned that BHX has achieved the target set at the beginning of the year by reducing warehouse space while still accommodating revenue growth, as well as decreasing travel time and improving vehicle load capacity utilization. He added that the cargo capacity of the vehicles has improved compared to the previous average of 60-70%.
At the meeting, Ms. Le Thi Thu Trang, Director of Investor Relations at MWG, shared that BHX’s logistics cost ratio is currently below 4%.
Store revenue growth to moderate in the second half
The BHX General Director forecasted that the chain still has growth potential in the future, but not as strong as before, as many stores have reached their service capacity corresponding to the current model’s floor area (approximately 150-200 square meters).
In the last six months of 2024, BHX will continue to focus on reducing operating costs at stores and improving revenue to meet the overall profit target set by the Board of Directors. Additionally, BHX will prioritize enhancing the efficiency of perishable goods sales and optimizing in-store sales costs.
Commenting on the market demand for food and consumer goods in the second half, Mr. Trong shared: “According to our collaboration with market research units, the first half of the year could be described as stagnant, while the latter half is expected to see some growth, but not significantly.”
Plans to open at least 50-100 new stores in 2024
Addressing a shareholder’s question about the slow pace of new BHX store openings, Mr. Trong explained that the first six months were intensely focused on achieving revenue and profit targets, causing some delays in expansion. Even in June and July, they remained cautious, as the goal for new stores is to contribute profits to the chain immediately.
However, Mr. Trong emphasized that there have been positive signs of acceleration in new store openings recently, and they are likely to open at least 50-100 new stores in 2024.
A Bach Hoa Xanh store in Ho Chi Minh City – Photo by Huy Khai
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Looking further ahead to 2025, Mr. Trong shared: “We haven’t had a definite plan regarding store expansion, but we have prepared the formula for opening new stores and developed a strategy to build the necessary resources to embrace the goals set by the Board of Directors.”
Mobile World achieves revenue of VND118,000 trillion: TVs, tablets, and phones all decrease by 10% – 50%, while one product grows in both quantity and revenue.
Mobile World Investment Corporation (MWG) has recently announced its 2023 business results. According to the report, the company’s consolidated revenue reached over 118 trillion Vietnamese dong, equivalent to 89% of the revenue in 2022.
