The Rise of Digiworld: Unlocking Growth and Profitability Across Industries

Digiworld JSC (Digiworld – code: DGW) has released its Q3 2024 consolidated financial report, with net revenue reaching VND 6,226 billion, a 15% increase compared to the same period in 2023. Profit after tax also increased by 19% year-on-year to nearly VND 122 billion, marking the highest net profit for Digiworld in the past seven quarters.

According to Digiworld, the laptop and tablet segment recorded a slight 1.3% increase in revenue to VND 2,428 billion compared to the same period last year, despite Q3 being the peak season for the market. This stagnant growth is attributed to the laptop market reaching saturation, coupled with economic challenges that discouraged consumers from purchasing new products.

In contrast, the mobile phone segment witnessed a significant 26% growth in revenue to VND 2,230 billion, largely due to the contribution of the first week of iPhone 16 sales and the strong performance of new Xiaomi phone models. Xiaomi’s rising market share also played a crucial role in driving revenue growth during the quarter.

The office equipment segment posted impressive results, with revenue reaching VND 1,151 billion, a 27% increase mainly driven by PC Client products, including desktop computers, monitors, servers, printers, network devices, and IoTs.

The home appliance segment recorded a remarkable 35% increase in revenue to VND 220 billion, driven by the strong performance of air purifiers and Xiaomi robot vacuum cleaners distributed by the company.

The consumer goods sector achieved a 15% growth rate, with revenue reaching VND 197 billion, thanks to the contribution of existing brands such as Nestle, Lion, Abinbev, Lotte, and Chilsung, along with pharmaceutical and medical equipment products.

For the first nine months of the year, Digiworld reported cumulative net revenue of VND 16,219 billion and profit after tax of VND 302 billion, representing a 16% and 11% increase, respectively, compared to the same period in 2023. With these results, the company has accomplished 71% of its revenue plan and 62% of its profit target for the full year.

Looking ahead to the full year 2024, Digiworld has set ambitious business plans, targeting net revenue and net profit of VND 23,000 billion and VND 490 billion, respectively, which translates to a 22% and 38% increase compared to the figures achieved in 2023. Excluding the phone segment, which is experiencing a slow recovery in demand, Digiworld expects double-digit growth across all other product categories.

As of the end of September 2024, Digiworld’s total assets increased by 4.9% compared to the beginning of the year, reaching VND 7,871 billion. While cash and cash equivalents decreased to VND 1,177 billion, accounts receivable increased significantly by nearly 32% to VND 2,925 billion, and inventory decreased slightly to VND 2,859 billion.

Notably, on May 15, the group acquired an additional 40.9% stake in B2X Vietnam Group, increasing its ownership to 90%. Furthermore, in September, DGW also increased its ownership in C.L Company from 90.15% to 99.15% for an investment cost of VND 5.22 billion and raised its stake in Vietmoney Holding from 72.8% to 73.16% with an investment cost of VND 158 million.