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Mobile World (MWG): Profit decreased by 97.8%, reaching VND77.5 billion in the first 9 months of 2023 

 Monday, November 13,2023

AsemconnectVietnam - Mobile World Investment Joint Stock Company (code MWG - HoSE) recorded a profit of VND38.82 billion in the third quarter, cumulatively in the first 9 months of 2023 recorded a profit of VND77.51 billion, down 97.8% compared to the same period last year.

In the third quarter of 2023, Mobile World Company recorded revenue of VND30,287.7 billion, down 5.4% over the same period, profit after tax reached VND38.82 billion, down 95.7% over the same period. Of which, gross profit margin decreased from 23.1%, to 15.3%, and net profit margin decreased from 2.83%, to 0.13%.
It is known that, if calculated on a quarterly basis, in a normal period Mobile World Company's net profit margin is from about 3% to 4%.
During the period, gross profit decreased by 37.2% over the same period, corresponding to a decrease of VND2,749.1 billion, to VND4,642.9 billion; Financial revenue increased by 77.5%, equivalent to an increase of VND270.38 billion, to VND619.12 billion; Financial expenses increased by 2.4%, equivalent to an increase of VND10.27 billion, to VND444.91 billion; Sales and corporate management expenses decreased by 18.4%, equivalent to a decrease of VND1,038.53 billion, to VND4,620.3 billion.
In terms of core business activities (gross profit - financial costs - sales and corporate management costs), in the third quarter, Mobile World Company recorded a loss of VND422.31 billion compared to the same period last year. Profit period was VND1,298.53 billion, a decrease of VND1,720.84 billion.
Thus, the gross profit in the third quarter that Mobile World Company generated was not enough to cover financial, sales and business management costs. The Company escaped a loss thanks to recording a sudden increase in financial revenue.
Explaining the decline in profits, Mobile World Company said that the purchasing power of phones and electronics in general is still weak and has not shown signs of significant recovery (except for some products due to seasonal factors). . Enterprises inform that customers still have the need to purchase and replace damaged products but are more cautious and careful in detailed decisions when the economic situation is still volatile.
For food and fast-moving consumer goods and pharmaceuticals, the trend of frugal consumption still occurs. However, due to their nature as essential goods, Mobile World Company said that these products are recording stable business results.
Nine-month profit decreased by 97.8% and the Bach Hoa Xanh chain lost an additional VND904.9 billion.
Accumulated in the first 9 months of 2023, Mobile World Company recorded revenue of VND86,858.3 billion, down 15.5% over the same period and profit after tax recorded VND77.51 billion, down 97.8% over the same period.
Of which, for the Bach Hoa Xanh chain alone, profit in the first 9 months of 2023 recorded a loss of VND904.9 billion, the total accumulated loss from 2016 to present reached VND8,299.87 billion. In addition, other units also suffered losses when An Khang Retail Joint Stock Company (pharmacy chain) lost VND234.4 billion, accumulated from 2019 to now is a loss of VND553 billion; MWG (Cambodia) Co., Ltd recorded a loss of VND96.8 billion, accumulated in the first 9 months of 2023 recorded a loss of VND701.5 billion...
In 2023, Mobile World sets a business plan with revenue of VND135,000 billion, up 1% over the same period and expected profit after tax of VND4,200 billion, up 2% compared to implementation in 2022 (assuming purchasing power will recover positively from the third quarter of 2023).
Thus, after the first 9 months of 2023 with a profit after tax of VND77.51 billion, Mobile World Company has only completed 1.8% of the year's profit plan and it is almost very difficult to complete the financial year plan.
As of September 30, 2023, Mobile World Company's total assets increased by 5% compared to the beginning of the year, equivalent to an increase of VND2,810.7 billion, to VND58,644.8 billion. Of which, main assets were cash and short-term financial investments recorded at VND23,253.8 billion, accounting for 39.7% of total assets; Inventory recorded VND22,853.5 billion, accounting for 39% of total assets; Long-term fixed assets recorded VND7,370.8 billion, accounting for 12.57% of total assets and other items.
During the period, assets fluctuated strongly, mainly fixed assets decreased by 24.2% compared to the beginning of the year, corresponding to a decrease of VND2,356.7 billion, to VND7,370.8 billion; Inventory decreased by 11.1% compared to the beginning of the year, corresponding to a decrease of VND2,842.6 billion, to VND22,853.5 billion; Cash and short-term financial investments increased by 53.7% compared to the beginning of the year, corresponding to an increase of VND8,123.6 billion, to VND23,253.8 billion...
As for capital, as of the end of the third quarter, although business declined, Mobile World Company increased debt by 38.2% compared to the beginning of the year, corresponding to an increase of VND6,336.6 billion, to VND22,926 billion and accounts for 39.1% of total capital. Of which, short-term debt is VND17,026.6 billion and long-term debt is VND5,899.4 billion.
N.Nga
Source: VITIC/Tinnhanhchungkhoan
 

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