Vietnam's Mobile World plans to pay 5% dividend in 2024

Vietnam’s Mobile World Investment Corporation will present to shareholders a plan to pay dividends at a rate of 5% in 2024.

The plan will be officially announced at the corporation's annual general meeting (AGM) of shareholders on April 13 in Ho Chi Minh City.

The company also intends to spend a maximum of VND100 billion ($4.03 million) from undistributed profits (VND8.16 trillion or $329 million as of December 31, 2023) buying back shares as treasury stock in 2024.

Regarding the plan to issue shares under the 2024 Employment Stock Ownership Plan (ESOP), Mobile World will propose a maximum issuance rate of 2% of total floating shares for VND10,000 ($0.4) each. The issuance is expected in 2025.

Mobile World, listed on the Ho Chi Minh Stock Exchange as MWG, targets a 6% year-on-year increase in revenue to VND125 trillion ($5.04 billion) in 2024, and a 14-fold rise in net profit to VND2.4 trillion ($96.8 million) this year.

To realize this plan, the company will undergo comprehensive restructuring following the motto “reducing quantity and increasing quality” to enhance internal strength. At the same time, it has sets goals for each business arm.

Specifically, Mobile World (mobile phones) and Dien May Xanh ((electric and electronic home appliances) will still be the main profit pillars, contributing about 65% to the firm’s revenue.

The Bach Hoa Xanh food and consumer goods retail chain will contribute about 30% of its revenue.

The An Khang pharmacy chain and AVAKids - a retail chain of mother and baby products - will have double-digit revenue growth, increase market share and reach break-even points before December 31, 2024.

According to Mobile World, this year, An Khang pharmacy can enter the expansion phase if it operates stably and effectively and builds a successful business model.

Meanwhile, Erablue - an electronics chain in Indonesia - will record double-digit revenue, increase market share, and become the top electronics retailer in the 300-miliion-strong country in 2024.

According to its financial statement, Mobile World 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.

On the stock market, MWG closed Thursday at VND48,500 ($1.96) per share.