Mobile World aims for a phase where profit grows faster than revenue: chairman

Pursuing the strategy of treasuring quality over quantity, Mobile World Investment Corporation (HoSE: MWG) has significantly cut down its number of retail outlets and reduced headcount by 10,000-20,000 employees, while doubling down on investments in retained staff, said chairman Nguyen Duc Tai.

“We’ve decided to reduce quantity and focus on quality. We closed down underperforming stores and are investing more in the high-performing ones. The same goes for personnel as we’ve streamlined, but we’re backing those who remain,” he told investors at the company’s Q2/2025 earnings review conference on Tuesday.

Three growth phases over 20 years

Reflecting on MWG’s 20-year journey, Tai outlined three key phases. 2004-2014 marked a decade of “explosive” growth as the company scaled from a small base; 2015-2021 saw an expansion driven by rapid store rollout, with revenue growth closely tracking store count; and 2022-2023 was a period of major restructuring, focusing on optimizing operations and improving efficiency.

“From 2024 onward, we are entering a new cycle, with growth driven by quality, not scale,” he noted.

The chairman emphasized that in this new phase, MWG aims to outperform competitors by delivering superior customer experiences both online and offline. The focus has shifted from chasing store count to maximizing profitability per store.

“In the early days, revenue grew fast, but profit lagged. Now, we’re aiming for a phase where profit grows faster than revenue and we can achieve that with fewer yet better stores,” he added.

Different growth paths for MWG’s key chains

Tai distinguished between MWG’s two major retail chains: The Gioi Di Dong (Mobile World) and Bach Hoa Xanh (Green Grocery).

The Gioi Di Dong has transitioned into a maturity phase, where growth will be driven by quality with better stores, better service, and better margins. Bach Hoa Xanh, by contrast, is still in its early stage, and will focus on both expanding store count and improving operations.

“In the case of Bach Hoa Xanh, quantity will go hand in hand with quality but quantity will be the primary driver in the near term to quickly gain market share,” he explained.

As a result, MWG expects revenue at Bach Hoa Xanh to grow faster than profit in the short term. Conversely, The Gioi Di Dong is forecast to see profit growing faster than revenue, he added.

MWG’s H1 revenue rose 12.5% year-on-year to VND73.66 trillion ($2.82 billion), reaching 49% of its full-year target. The firm has set a 2025 revenue target of VND150 trillion ($5.74 billion) and net profit goal of VND4.85 trillion ($185.5 million), aiming for annual growth of 12% and 30%, respectively.

On the Ho Chi Minh Stock Exchange (HoSE), MWG shares closed Wednesday at VND69,400 ($2.63) apiece.