The "headwinds" in 2022 offered an opportunity for Mobile World Investment Corporation (MWG) to focus on reviewing business operations and strengthening its internal resources, according to the firm’s chairman Nguyen Duc Tai.
In a letter to shareholders attached to the 2022 annual report, Tai said that Mobile World experienced a challenging year in 2022 and for the first time since it listed shares on the Ho Chi Minh Stock Exchange in 2014 as MWG, the corporation only completed 95% of its revenue target and 65% of its profit plan.
The company's leadership has frankly acknowledged flaws and adjustments needed to survive and adapt to rapidly changing business conditions; and drastically remove obstacles for the company to develop further and more sustainably, he noted.
In particular, its food and consumer goods retail chain Bach Hoa Xanh underwent a comprehensive reshuffle, repositioning the brand from the model of modern market to mini supermarket and changing the way of store arrangement so that customers have a more comfortable and convenient shopping space.
It focused on improving the quality of products and services to create a better experience for customers, while resolutely closing stores that operate inefficiently.
After restructuring, the number of Bach Hoa Xanh stores dropped nearly 20% year-on-year to 1,728 at the end of 2022, with average annual revenue of VND1.3-1.4 billion ($59,600) per store. Bach Hoa Xanh's total revenue hit VND27 trillion ($1.15 billion) last year, equal to 96% of the record figure in 2021.
For the An Khang pharmacy chain, after reaching 500 pharmacies by the end of 2022, the corporation halted its expansion to focus on increasing revenue per store, and controlled costs for profitable operation. In addition, MWG also shrank new chains and stopped experiments that do not show future growth potential.
"In difficulties, there are always opportunities. The proactiveness in solving most internal problems and solid financial conditions will be the foundation for MWG to make breakthroughs when production-consumption activities recover," said Tai.
This year, MWG plans to earn VND135 trillion ($5.75 billion) in consolidated revenue, a slight year-on-year increase of 1%, and VND4.2 trillion ($178.8 million) in after-tax profit. The plan will be submitted to shareholders for approval at the upcoming general meeting.
The HCMC-based company retail giant reported an after-tax profit of VND4.1 trillion ($174 million) in 2022, down 16% year-on-year, fulfilling 65% of its plan. Net revenue hit VND133.41 trillion ($5.66 billion), up 8%, according to its consolidated financial report.
As of December 31, 2022, MWG's total assets reached VND55.83 trillion ($2.37 billion), down 11% compared to the beginning of the year, of which inventory hit VND25.7 trillion ($1.09 billion), down 12%.
On the stock market, MWG closed the Wednesday session at VND38,700 ($1.65) per share, a reduction of over 48% from its peak of VND80,000 ($3.23) recorded in April 2022.