Retail major Mobile World targets 14-fold profit growth in 2024

Vietnam’s Mobile World Investment Corporation has targeted a 5% year-on-year increase in revenue to VND125 trillion ($5.13 billion) and a 14-fold rise in net proft to VND2.4 trillion ($98.48 million) this year.

The business plan has been approved by the board of directors of Mobile World, listed on the Ho Chi Minh Stock Exchange (HoSE) as MWG, and is expected to be presented to shareholders at the corporation’s upcoming annual general meeting.

Despite the significant net profit hike targeted this year, it remains much lower than the net profit of VND3.9-4.9 trillion ($201 million) the company earned in the 2020-2022 period.

According to its latest financial statement, MWG posted net profits of VND168 billion ($6.9 million) in 2023, down 96% year-on-year, marking the lowest figure since 2013; and its net revenues last year of VND118.28 trillion ($4.85 billion) marked a 11.3% year-on-year decline.

This meant that the corporation met just 87.6% and 4% of its revenue and profit targets for the year, respectively.

In the fourth quarter of 2023, the company's net revenue reached VND31.42 trillion ($1.29 billion), up 2.7% year-on-year. However, with a gross profit margin of 19.68%, lower than the fourth quarter of 2022 when it was nearly 26.2%, gross profits fell nearly 23% to VND6.19 trillion ($253.78 million).

MWG's total assets value was VND60.1 trillion ($2.47 billion), with cash, cash equivalents and term bank deposits hitting VND24.76 trillion, accounting for 42% of the total.

Liabilities at the end of Q4/2023 was VND36.75 trillion ($1.5 billion), an increase of 41.33% compared to the beginning of the period. Of which, short-term loans were worth VND19.13 trillion and short-term payables to sellers VND7.93 trillion.

On the stock market, MWG closed Monday at VND47,400 ($1.95) per share.