Bach Hoa Xanh, a retail grocery chain under Mobile World Investment Corporation, posted revenue of VND6 trillion ($242.4 million) in the first two months of 2024, a year-on-year increase of 47%, according to Mobile World.
The chain maintained average revenue of VND1.8 billion ($72,727) per month per store - a break-even level for three consecutive months, the corporation said.
The driving force for revenue growth came from the fresh food and fast moving consumer goods (FMCGs) segments. Of which, fresh food soared more than 70% and FMCGs 40% compared to the same period last year.
The company said it had made preparations in terms of goods and logistics, ensuring smooth operations, full and diverse supplies, and stable prices.
Since its establishment in 2015, the Bach Hoa Xanh chain has failed to post a profit. Its total accumulated losses so far have surpassed VND8.6 trillion ($347.47 million).
In 2023 alone, the chain suffered a loss of VND1.21 trillion ($48.49 million), down 59% compared to 2022. By reaching break-even point in December 2023, the leadership expected that the chain to turn a profit for the parent corporation from 2024.
As of the end of February, the chain had 1,698 stores in operation, unchanged from the end of last year. This year, Mobile World said it will open new stores selectively and seek to grow sales at existing stores by improving quality, stabilizing the fresh food segment, and selling more FMCGs.
Mobile World aims to continue to increase market share for the chain and maintain a double-digit revenue growth rate, given the trend of food and FMCGs shopping shifting from traditional market channels to modern retail outlets.
According to international market research firm Euromonitor, Vietnam's traditional retail market share in 2023 fell to 87.5% from 88.5% in 2022. At present, the total number of modern retail sales points exceeds 7,800, but only 1% of traditional markets. The scale of the food and FMCGs market in Vietnam is estimated at more than $50 billion and is constantly growing with new products to meet consumer needs.
At the beginning of the year, the Mobile World board of directors issued a plan to mobilize capital for the Bach Hoa Xanh chain through the private offering of shares in Bach Hoa Xanh Technology and Investment JSC. The number of shares expected to be issued will be equivalent to 5-10% of existing shares, and the capital mobilization is expected to be completed in the first half of 2024.
Mobile World is listed on the Ho Chi Minh Stock Exchange as MWG, and closed Friday at VND49,100 ($1.98) per share.