MWG’s accumulated profits have grown again since the outbreak of Covid-19
9-month profit grew again
In September business report, Mobile World Investment (HoSE: MWG) recorded a 6% increase in revenue to VND 8,382 billion and a 7.2% increase in profit after tax for the month to VND 299 billion.
Generally in the third quarter, net revenue increased by 2% to 25,714 billion dong. Thanks to lower COGS, gross profit increased by 16% to 5,750 billion dong, corresponding to an improvement in gross profit margin to 22.4%. Profit after tax increased by 11% to VND 951 billion.
Although the Covid-19 translation has a negative impact on people’s income and the expenditure on mobile phones and electronics, the company has taken actions to increase its competitiveness such as completing the upgrade of the layout of the home product area; testing model DMX supermini; continue to promote the watch and laptop industries.
Unit: billion dong
In the first 9 months, MWG achieved consolidated net revenue of 81,352 billion dong, up 6% and profit after tax increased slightly to 2,978 billion dong. Thus, since the Covid epidemic broke out in March up to now, MWG’s accumulated profits have officially grown again over the same period in 2019.
Accumulated gross profit margin in 9 months was significantly improved to 21.7% compared to 18.4% in the same period last year. This result is due to the positive contribution of almost all categories, especially food and fast moving consumer goods (FMCGs). 9-month cumulative net profit margin is protected at 3.7% thanks to increased operational efficiency across all chains.
With this result, the company has completed 74% of the revenue plan and 86% of the profit plan for the year 2020.
By category, sales of laptops increased by 44%, reaching more than 2,500 billion VND; watches 2.8 times higher than the same period, reaching VND 1,050 billion thanks to the sale of 750,000 products; food and FMCGs increased 112%; refrigeration and household appliances still grew; Sales of mobile phones are still decreasing but are gradually improving thanks to the launch of new products and the opening of new stores.
Online business activities have revenue of 7,244 billion VND, accounting for 9% of the company’s revenue. The total number of stores as of the end of September is 3,709.
Expansion of DMX Supermin and Bach Hoa Xanh “5 billion”
After the pilot phase, the Supermini DMX system (DMX) was present in 12 provinces in the West, East and South Central region with a total of 52 stores; including 33 new stores opened in September.
Accumulation to the end of September, MSM contributed more than 100 billion VND, equivalent to the average revenue of each store reached more than 1 billion / month. The company still plans to expand this system to increase the electronics market share in the near future.
Bluetronics retail chain in Cambodia has reached 20 stores in Phnom Penh by completing the conversion of the entire Bigphone store before. MWG is aiming to expand to 50 stores by the end of 2020 to cover other provinces outside Phnom Penh, including Siem Reap, Sihanoukville.
MWG plans to expand DMX Supermini to increase the electronics market share.
Regarding Bach Hoa Xanh, the revenue of the whole chain reached more than 15,000 billion VND, up 112% over the same period and contributing 19% of the total sales of MWG. The chain has a total of 1,623 points of sale thanks to opening 137 new stores in the third quarter. Average revenue is nearly 1.4 billion VND / store / month.
Bach Hoa Xanh has 35 stores operating under the model of “5 billion” revenue / month in Ho Chi Minh City, Dong Nai, Long An, Binh Duong, Binh Phuoc, Ben Tre. In which, 11 stores are arranged with the An Khang pharmacy model.
The gross profit margin after canceling goods and loss in the third quarter of Bach Hoa Xanh remained at 25% (equivalent to the second quarter and increased compared to 20% of the third quarter of 2019) thanks to the improvement of commercial terms with suppliers FMCGs when the advantage of scale becomes larger and the efficiency of fresh purchase is optimized.
This food retail chain will actively adjust the speed of new opening in parallel with the increase in the number of “5 billion” models. The company is aiming to have 100 “5 billion” stores by the end of 2020.
Source: ndh.vn – Translated by fintel.vn
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