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
Vietnam mining group Vinacomin appoints new CEO

Vietnam mining group Vinacomin appoints new CEO

Vu Anh Tuan, a board member of state-owned Vietnam Coal and Mineral Industry Group (Vinacomin) has been appointed general director, starting from last Monday.

Companies - Sat, October 26, 2024 | 11:14 am GMT+7

Foreign players net sell $46.4 mln worth of Vietnam equities this week

Foreign players net sell $46.4 mln worth of Vietnam equities this week

Foreign investors continued to net sell on the Vietnamese stock market this week, to the tune of VND1,178 billion ($46.43 million) as the U.S. dollar extended its strengthening.

Finance - Sat, October 26, 2024 | 9:39 am GMT+7

Northern Vietnam province sees five-year registered FDI exceeds target by 181%

Northern Vietnam province sees five-year registered FDI exceeds target by 181%

Quang Ninh province in northern Vietnam expects to attract $10 billion in registered foreign direct investment (FDI) in the 2021-2025 period, local authorities say.

Investing - Sat, October 26, 2024 | 8:00 am GMT+7

Vietnam invites state-owned Chinese giant to join $67 bln high-speed railway project

Vietnam invites state-owned Chinese giant to join $67 bln high-speed railway project

Vietnam’s Commission for the Management of State Capital at Enterprises (CMSC) has invited China State Construction Engineering Corporation (CSCEC) to participate in and "make contributions" to the country’s $67-billion cross-country high-speed railway project.

Infrastructure - Fri, October 25, 2024 | 7:35 pm GMT+7

Vietnam National Assembly Office Chair unexpectedly steps down

Vietnam National Assembly Office Chair unexpectedly steps down

Vietnam’s National Assembly (NA), the country's supreme legislative body, has unexpectedly relieved Bui Van Cuong from the post of its General Secretary.

Politics - Fri, October 25, 2024 | 7:19 pm GMT+7

Vietnamese lender MSB owned 34% by 9 major shareholders holding over 1% stake each

Vietnamese lender MSB owned 34% by 9 major shareholders holding over 1% stake each

A total of 33.69% of Vietnam Maritime Commercial Joint Stock Bank, or MSB, is held by nine institutional shareholders who own an over 1% stake each, according to its updated list of shareholders.

Banking - Fri, October 25, 2024 | 4:24 pm GMT+7

Belarus seeks cooperation with Vietnam in manufacturing automobiles

Belarus seeks cooperation with Vietnam in manufacturing automobiles

Belarus wants to collaborate with Vietnam in manufacturing automobiles for export, President Aleksander Lukashenko said to his Vietnamese counterpart Pham Minh Chinh at a Thursday meeting on the sidelines of the BRICS Summit.

Industries - Fri, October 25, 2024 | 4:08 pm GMT+7

Tran Cam Tu promoted to permanent member of Vietnam Party Central Committee’s Secretariat

Tran Cam Tu promoted to permanent member of Vietnam Party Central Committee’s Secretariat

Tran Cam Tu, a member of the Politburo and the Party Central Committee's Secretariat, was appointed permanent member of the Secretariat by the Politburo on Friday.

Politics - Fri, October 25, 2024 | 3:56 pm GMT+7

SeABank offers comprehensive financial solutions to support import-export businesses

SeABank offers comprehensive financial solutions to support import-export businesses

SeABank has developed a diverse range of flexible financial products to help import-export enterprises optimize cash flow and ensure smooth operations.

Companies - Fri, October 25, 2024 | 3:34 pm GMT+7

SeABank empowers women-owned businesses with exceptional benefits and specialized support

SeABank empowers women-owned businesses with exceptional benefits and specialized support

To support and facilitate the growth of women-owned enterprises, SeABank has introduced a range of exclusive programs and specialized financial products, reinforcing its goal of becoming a trusted financial partner for women-owned businesses in Vietnam.

Companies - Fri, October 25, 2024 | 3:22 pm GMT+7

Singaporean investment fund Makara Capital seeks investment opportunities in Hanoi

Singaporean investment fund Makara Capital seeks investment opportunities in Hanoi

Singapore-based capital firm Makara Capital hopes to put its extensive experience in infrastructure, innovation and energy projects to use in Hanoi, CEO Ali Ijaz Ahmad said on Thursday.

Investing - Fri, October 25, 2024 | 3:13 pm GMT+7

Daughter of Masan Group chairman plans to spend $30-plus mln on MSN shares

Daughter of Masan Group chairman plans to spend $30-plus mln on MSN shares

Nguyen Yen Linh, daughter of Masan Group chairman Nguyen Dang Quang, has plans to spend at least $30 million on acquiring 10 million shares of the group, listed on the Ho Chi Minh Stock Exchange as MSN.

Companies - Fri, October 25, 2024 | 2:55 pm GMT+7

VAFIE works to boost Chinese investment in Vietnam

VAFIE works to boost Chinese investment in Vietnam

The Vietnam’s Association of Foreign Invested Enterprises (VAFIE) worked with an industry-trade delegation from China's Chongqing city at a Friday seminar to boost investment ties between the two countries.

Companies - Fri, October 25, 2024 | 1:56 pm GMT+7

Vinhomes buys back another 10 mln shares on Thursday as stock nosedives

Vinhomes buys back another 10 mln shares on Thursday as stock nosedives

Vinhomes JSC, the largest residential housing developer in Vietnam, bought another 9.95 million shares on Thursday, the second day of its mega buyback scheme, while its stock price continued going south.

Finance - Fri, October 25, 2024 | 11:36 am GMT+7

USD/VND exchange rate to stabilize soon amid Fed’s rate cut cycle: experts

USD/VND exchange rate to stabilize soon amid Fed’s rate cut cycle: experts

The increase in the USD/VND exchange rates since early October is largely seasonal and is expected to ease soon as the U.S. Federal Reserve (Fed) is set further cut interest rates, according to experts.

Banking - Fri, October 25, 2024 | 10:52 am GMT+7

Putin, PM Chinh agree to intensify oil-gas cooperation

Putin, PM Chinh agree to intensify oil-gas cooperation

Russian President Vladimir Putin and Vietnamese Prime Minister Pham Minh Chinh have agreed to continue promoting the expansion of activities by Vietnamese and Russian oil and gas companies in each country.

Economy - Fri, October 25, 2024 | 9:46 am GMT+7