Vietnam’s major retailer Mobile World reports 22-fold profit surge in 2024

Mobile World, one of the leading retailers in Vietnam, reported its after-tax profit skyrocketed 22 times in 2024 compared to the previous year, largely driven by the strong performance of its retail chains, including Bach Hoa Xanh, EraBlue, and AvaKids.

Mobile World, listed on the Ho Chi Minh Stock Exchange (HoSE) as MWG, achieved a net revenue of VND134.34 trillion ($5.36 billion) in the year, a year-on-year increase of 14%.

On average, the company earned approximately VND368 billion ($14.67 million) per day, according to its freshly released Q4/2024 financial statement.

Its after-tax profit for the year amounted to over VND3.73 trillion ($148.72 million), a staggering 22-fold increase over the previous year’s low base. With these results, MWG exceeded the year's revenue and profit targets by 7% and 56%, respectively.

For the fourth quarter of 2024, MWG recorded a consolidated revenue of VND34.57 trillion ($1.38 billion), a 10% rise year-on-year.

The gross profit grew by 6.5%, reaching VND6.59 trillion, with a gross margin of 19%. Financial income rose 5% to VND636 billion ($14.47 million), while financial expenses were significantly reduced by 55% to VND189 billion. However, corporate management expenses surged by 237% to over VND916 billion.

After deducting costs, MWG reported an after-tax profit of VND852 billion ($33.97 million) in Q4/2024, more than nine times higher than the same period in 2023.

In 2024, its Mobile World (mobile phones) chain, including Topzone, contributed VND30 trillion ($1.2 billion), and Dien May Xanh (electric and electronic home appliances) VND59.5 trillion ($2.37 billion), or 22.4% and 30.6% of MWG’s total revenue, respectively. Online sales accounted for approximately VND8.7 trillion, about 10% of the combined revenue from these two chains.

According to its leadership, despite a flat retail market for mobile phones, MWG outperformed the market by achieving over 10% growth in same-store sales amid a reduction of 221 stores compared to 2023.

Most product categories saw positive growth ranging from 5% to 30%, with standout performances in home appliances and mobile phones, which posted double-digit growth. The company also made significant strides in improving business efficiency, which became a key contributor to profit.

Additionally, MWG formed partnerships with major financial institutions like Home Credit to introduce deferred payment solutions, easing the financial burden on customers and offering more flexible shopping options.

It also signed an agreement with private lender VPBank to transform over 3,000 The Gioi Di Dong/Dien May Xanh stores into financial service points for activities like deposits, withdrawals, and transfers. Within just one month of implementation, the company processed over VND1 trillion ($39.9 million) from nearly 150,000 transactions.

Bach Hoa Xanh saw impressive growth in 2024, reaching VND41 trillion ($1.63 billion) in revenue, a 30% increase compared to 2023. Online sales served over three million successful transactions and contributed more than VND925 billion ($36.88 million), accounting for 2.3% of its total revenue.

Average revenue per store in 2024 hit VND2 billion ($79,745), a 29% rise year-on-year. This success follows a complete restructuring of the chain, which has now turned profitable at the company level after two years of comprehensive restructuring.

An Khang, MWG’s pharmaceutical chain, recorded nearly VND2.3 trillion ($91.7 million) in revenue, growing 3% from the previous year. The company closed underperforming stores and boosted sales in remaining locations through optimized product assortments and improved sales consulting quality.

In Q4/2024, average revenue per store grew 15% compared to the previous two quarters, while losses were significantly reduced.

AvaKids, MWG’s retail chain for baby and mother products, achieved nearly VND1.2 trillion ($47.85 million) in revenue, marking a 35% increase year-on-year, despite no new store openings.

Online sales contributed nearly 50% of the chain’s total revenue. AvaKids continued to lead the retail sector for baby and mother products in Vietnam, with an average revenue of VND1.8 billion ($71,770) per store by the end of 2024.

EraBlue, Mobile World’s Indonesian operation, saw a remarkable four-fold revenue growth year-on-year, with an average revenue of VND2.8 billion ($111,642) per store. After two years of development, EraBlue now operates 87 stores in Indonesia, and with a suitable product range, competitive pricing, and an accessible business model, the chain has become profitable since Q3/2024.

In the stock market , MWG closed Friday at VND60,100 ($2.4) per share.