At a recent investor meeting, the leadership of Joint Stock Digital World (Digiworld, stock code DGW) shared notable insights about the company’s new business ventures.
For the first half of 2024, the Vietmoney pawnshop chain incurred an average monthly loss of approximately 1 billion VND, mainly due to headquarters-related expenses. The management expects Vietmoney to continue recording losses for the remainder of 2024.
In previous announcements, Digiworld forecasted that Vietmoney’s contribution to profits would be insignificant over the next two years.
Vietmoney’s sales per store per month for the first half of 2024 (total issued loans) was 2 billion VND (up 20% year-on-year). Out of Vietmoney’s 16 stores, 14 stores reported slight profits at the store level, while the remaining 2 stores are still making losses.
The management shared that Vietmoney could turn a profit at the company level with an average monthly sales per store of 2.5 billion VND.
Information disclosed at the investor meeting also revealed that a potential M&A deal in the office equipment segment fell through, but there is a high chance of finalizing a promising deal in the consumer segment in 2025.
Regarding Achison’s business performance, the company is expected to generate 800 billion VND in revenue for 2024. The acquisition of 75% of Achison, a distributor of personal protective equipment and industrial equipment such as grinding stones, cutting discs, and polishing machines, has been Digiworld’s most notable transaction in the past year.
However, Achison’s sales performance for the first half of 2024 fell short of management’s expectations due to weaker-than-anticipated production activity. Achison established a branch in Hanoi, recording a total revenue of 360 billion VND with a net profit of 8 billion VND.
Previously, at the 2024 Annual General Meeting, Digiworld attributed the acquisition of Achison to reduced costs and set a revenue target of 1,000 billion VND and a profit after tax of 50 billion VND for this segment for 2024, representing a 50% growth rate. Weaker demand from Europe and America led to a decrease in orders in Vietnam, prompting a downward revision of Achison’s revenue target.
Digiworld aims for 3Q2024 revenue of 6,000 billion VND (up 11% year-on-year and up 20% quarter-on-quarter) and net profit after minority interests of 120 billion VND (up 18% year-on-year and up 34% quarter-on-quarter). If these targets are met, the company will record a 14% growth rate for both revenue and net profit after minority interests for the first nine months of 2024.
