Retail major Mobile World sees lowest net profit in 10 years
Vietnam’s Mobile World Investment Corporation (MWG) posted a net profit of VND168 billion ($6.9 million) in 2023, down 96% year-on-year, marking the lowest level since 2013.
According to its freshly released financial statement, the company, listed on the Ho Chi Minh Stock Exchange (HoSE) as MWG, recorded VND118,280 billion ($4.85 billion) in net revenue, falling 11.3% from 2022.
With such results, MWG completed only 87.6% and 4% of its revenue and profit targets.
In the fourth quarter of 2023, the company's net revenue reached VND31,421 billion ($1.29 billion), an increase of 2.7% year-on-year. However, with a gross profit margin of only 19.68%, lower than the fourth quarter of 2022 (nearly 26.2%), while its gross profit fell nearly 23% to VND6,186 billion ($253.78 million).
Financial activities became a bright spot in Q4 when revenue surged nearly 93.4% to VND603.4 billion ($24.75 million). Meanwhile, deposit interest was more than VND1,828 billion ($75 million), 2.1 times higher than the same period in 2022.
Deducting costs and taxes, MWG's Q4 after-tax profit reached VND90.3 billion ($3.7 million), a steep fall of 85.4% year-on-year.
MWG said that in 2023, most segments saw negative growth, with mobile phones, laptops, washing machines and household appliances decreasing 10-20% year-on-year, while televisions, tablets and watch products plunged 30-50%.
However, iPhone products sold at Mobile World (mobile phones) and Dien May Xanh ((electric and electronic home appliances) stores still recorded positive growth thanks to Apple's increasing market share. The air conditioning segment also saw positive growth in both quantity and revenue although purchasing power in the market has not improved yet.
Notably, MWG said that the Bach Hoa Xanh chain has reached its break-even point, and is expected to post a net profit for 2024. In 2023, the food retail chain's revenue reached VND31,600 billion ($1.3 billion), an increase of 17% compared to 2022.
In the fourth quarter of 2023 alone, its revenue expanded 31% over the same period in 2022. The online sales channel contributed more than VND900 billion ($36.94 million), accounting for 3% of Bach Hoa Xanh's total revenue. In December 2023, the average revenue hit VND1.8 billion ($73,876) per store.
The An Khang pharmacy chain’s annual revenue reached VND2,200 billion ($90.3 million), up 43% year-on-year, with average monthly earning of VND450 million ($1,840) per store.
As for AVAKids - a retail chain of mother and baby products, its 2023 revenue was nearly VND900 billion ($36.94 million), growing more than 80% over the same period in 2022, with average revenue of VND1.7 billion ($69,770) per store per month. Online channels contributed nearly 30% of AVAKids total revenue.
Meanwhile, Erablue - an electronics chain in Indonesia, recorded revenue 20 times higher than 2022. In December 2023, the average revenue was VND4.5 billion ($184,690) for standard stores and VND2.5 billion ($102,600) for supermini stores.
MWG's total assets as of December 31, 2023 reached VND60,108 billion ($2.47 billion), with cash, cash equivalents and term bank deposits hitting VND24,763 billion, accounting for 42%.
Liabilities at the end of the fourth quarter of 2023 were VND36,748 billion ($1.5 billion), an increase of 41.33% compared to the beginning of the period. Of which, short-term loans were worth VND19,128 billion and short-term payables to sellers VND7,927 billion.
In the stock market, MWG closed Thursday at VND46,200 ($1.9) per share.
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