Retail grocery chain Bach Hoa Xanh’s revenue up 50% in 2 months

By Tuong Nhu, Minh Hue
Mon, March 25, 2024 | 4:02 pm GMT+7

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.

A Bach Hoa Xanh grocery store. Photo courtesy of Mobile World.

A Bach Hoa Xanh grocery store. Photo courtesy of Mobile World.

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.

Comments (0)
  • Read More
Construction of $2.3 bln central Vietnam LNG power plant to restart in 2026

Construction of $2.3 bln central Vietnam LNG power plant to restart in 2026

Construction of the 1,500-MW Hai Lang Power Center project in Quang Tri province will restart on January 1, 2026, the project investor has informed local authorities.

Energy - Sun, November 17, 2024 | 8:00 am GMT+7

Vietnam-China partnership to enable export of Kim Long brand cars

Vietnam-China partnership to enable export of Kim Long brand cars

Vietnam’s Kim Long Motor and Futa Group have struck a strategic cooperation agreement with China’s Dongfem Dana that will enable the production and export of cars under the Kim Long brand, executives said Friday.

Companies - Sat, November 16, 2024 | 7:13 pm GMT+7

Northern Vietnam province attracts $124 mln investment from Taiwan firm

Northern Vietnam province attracts $124 mln investment from Taiwan firm

Taiwan-based Nien Made Enterprise Co., Ltd. will invest $124.1 million to make furniture accessories at Phu Ha Industrial Park in the northern province of Phu Tho.

Industries - Sat, November 16, 2024 | 7:01 pm GMT+7

Vietnam’s first LNG-fired power plants to enter commercial operation in Jun-Sept 2025

Vietnam’s first LNG-fired power plants to enter commercial operation in Jun-Sept 2025

Nhon Trach 3 and Nhon Trach 4, Vietnam’s first LNG-to-power plants, will begin commercial operations in June and September 2025, respectively, says project investor PV Power.

Energy - Sat, November 16, 2024 | 3:20 pm GMT+7

Vinhomes spends $276 mln on buying back 162 mln shares, more than half to go

Vinhomes spends $276 mln on buying back 162 mln shares, more than half to go

Vinhomes, the largest housing developer in Vietnam, has spent around VND7 trillion ($275.7 million) on implementing its record buyback plan since kick-starting it on October 23.

Finance - Sat, November 16, 2024 | 1:21 pm GMT+7

Indonesia secures funding for green power infrastructure at COP29

Indonesia secures funding for green power infrastructure at COP29

Indonesia has attracted EUR1.2 billion ($1.26 billion) worth of green funding for the electricity sector from Germany’s Kreditanstalt für Wiederaufbau (KfW) at the 29th UN Climate Change Conference of the Parties (COP29) in Baku, Azerbaijan.

Southeast Asia - Sat, November 16, 2024 | 10:10 am GMT+7

Hanoi-based fledgling firm spends $12.3 mln on buying 17.2 mln shares of lender VIB

Hanoi-based fledgling firm spends $12.3 mln on buying 17.2 mln shares of lender VIB

Hanoi-based Quang Kim Development and Investment JSC acquired 17.2 million shares of Vietnam International Commercial Joint Stock Bank (HoSE: VIB) on Monday.

Banking - Sat, November 16, 2024 | 9:47 am GMT+7

Vietnam can utilize Trump’s policies to enhance position in global supply chains: experts

Vietnam can utilize Trump’s policies to enhance position in global supply chains: experts

Vietnam can take the advantage of protectionist economic policies by Donald Trump, the 47th president of the U.S., to strengthen its position in global supply chains, attract foreign investment, and drive sustainable economic growth, write Dr. Tran Ngoc Mai and Prof. Dr. Doan Ngoc Thang, lecturers at the Banking Academy of Vietnam.

Top News - Sat, November 16, 2024 | 9:30 am GMT+7

Former provincial Party chiefs receive warnings for Thuan An Group-related violations

Former provincial Party chiefs receive warnings for Thuan An Group-related violations

The Politburo, Vietnam’s highest decision-making body, has issued warnings to Nguyen Xuan Ky, former Party chief of Quang Ninh province, and Bui Van Cuong, former Party chief of Dak Lak province, for violations related to Thuan An Group.

Politics - Sat, November 16, 2024 | 9:24 am GMT+7

GenAI set to increase Thai GDP by 6% by 2030

GenAI set to increase Thai GDP by 6% by 2030

Generative artificial intelligence (GenAI) is projected to raise Thailand's GDP by 6% by 2030, with hefty contributions from the trade and manufacturing sectors, according to a joint online survey by SCB X and SCB Economic Intelligence Centre (SCB EIC) of the country.

Southeast Asia - Sat, November 16, 2024 | 9:00 am GMT+7

Thailand prepares for nuclear energy

Thailand prepares for nuclear energy

Thailand’s Energy Regulatory Commission (ERC) will start looking into the legal aspects of a small modular reactor project this month to prepare Thailand for using nuclear energy.

Southeast Asia - Sat, November 16, 2024 | 8:30 am GMT+7

Data is money, big money: Vietnam tech giant FPT

Data is money, big money: Vietnam tech giant FPT

Vietnamese tech giant FPT Corporation views data as a new resource and is determined to convert it into money and an artery of the economy, says its general director Nguyen Van Khoa.

Companies - Sat, November 16, 2024 | 7:18 am GMT+7

US to support Indonesia in developing small modular nuclear reactors

US to support Indonesia in developing small modular nuclear reactors

The U.S. has pledged to assist Indonesia in accelerating the development of small modular nuclear reactors (SMRs), according to Indonesia's Presidential Office.

Southeast Asia - Sat, November 16, 2024 | 12:13 am GMT+7

Singapore's venture capital market grows increasingly attractive

Singapore's venture capital market grows increasingly attractive

Despite a slump in funding, Singapore’s venture capital market remained active in the first nine months, The Straits Times reported.

Southeast Asia - Sat, November 16, 2024 | 12:08 am GMT+7

VinFast CEO-owned firm secures extra deal to lease EVs to ride-hailing firm

VinFast CEO-owned firm secures extra deal to lease EVs to ride-hailing firm

A taxi service provider based in Vietnam’s central province of Binh Dinh will lease 1,000 VinFast electric cars from an electric vehicle (EV) leasing firm that is 90% owned by billionaire Pham Nhat Vuong, the CEO of the Vietnamese carmaker.

Companies - Fri, November 15, 2024 | 8:35 pm GMT+7

Chinese, Vietnamese firms plan $2 bln renewable energy-hydrogen project

Chinese, Vietnamese firms plan $2 bln renewable energy-hydrogen project

3TI Progetti Asia, a local planning-design business, and two Chinese firms plan to invest $2 billion in a hydrogen production project using renewable energy in Vietnam's south-central province of Ninh Thuan.

Energy - Fri, November 15, 2024 | 7:35 pm GMT+7