Retail major Mobile World posts $2.3 bln revenue in first 6 months

Vietnam's Mobile World Investment Corporation (MWG) has earned VND56.57 trillion ($2.3 billion) in the first six months of the year, down 20% year-on-year and fulfilling 42% of its year plan.

The total revenue of its two chains - The Gioi Di Dong (mobile phones) and Dien May Xanh (electric and electronic home appliances) - dropped 27% year-on-year to VND41.5 trillion ($1.75 billion), while that of the Bach Hoa Xanh grocery chain increased 7% to VND13.6 trillion ($574.4 million).

MWG said that in June alone, revenues earned by the Gioi Di Dong and Dien May Xanh chains dropped 25% year-on-year to VND6.7 trillion ($282.76 million).

Following a positive business period in April and May, purchasing power for air conditioners in June became weaker as northern provinces were affected by erratic weather and power shortages.

The Bach Hoa Xanh grocery chain posted revenues of VND2.53 trillion ($106.8 million) in June, up 3% over May and 9% year-on-year. Average revenue per store was about VND1.45 billion ($61,200). MWG said it expected Bach Hoa Xanh to continue to improve sales strongly in July.

MWG did not disclose profit or loss figures for the period.

MWG cut nearly 6,000 employees from its workforce in the first quarter of 2023 to over 68,000, marking its second layoff in the past six months, according to its financial report.

The retail giant had reported earlier that its staff numbered 73,200 in Q4/2022, a quarter-to-quarter decrease of 7,000 employees.

In total, the firm laid off 13,000 people in the last six months, bringing its workforce size to what it was at the end of 2021.

However, its website mentions 3,000 new vacancies.

This year, Mobile World targets revenues and after-tax profits of VND135 trillion ($5.75 billion) and VND4.2 trillion ($179 million), up 1% and 2% from the previous year, respectively.

On the Ho Chi Minh Stock Exchange, MWG shares closed Friday at VND54,500 ($2.3).