AsemconnectVietnam - After a challenging forecast, Mobile World Investment Joint Stock Company (code MWG – HoSE) recorded a 32% decrease in revenue of Mobile World and Dien May Xanh chains in the first 2 months of 2023.

In the first 2 months of 2023, The Gioi Di Dong recorded a revenue of VND19,010 billion, down 25% over the same period and completing 14% of the year's revenue target (the revenue plan of VND135,000 billion).
However, Mobile World does not announce profits in the first 2 months of 2022. It is known that in the monthly reports of 2022, Mobile World continuously announces monthly revenue and profit.
For Mobile World and Dien May Xanh chains, in the first 2 months of the year, total revenue decreased by 32% over the same period.
The company said that the purchasing power of ICT products and electronics in general are both declining sharply over the same period and happening at most of the brands. In which, the products that recorded the most revenue decline were tablets, laptops and TVs.
In addition, the middle and high-end customers are still able to pay but are cautious, delaying spending decisions on durable and high-value products due to the decline in consumer confidence. For the group of customers with real needs in the low-income segment, it is more difficult to access consumer loans through installment purchase.
For Bach Hoa Xanh chain, accumulated in the first 2 months of 2023, revenue increased by 6% over the same period. In which, the average revenue reached more than VND1.2 billion/store/month, up 30% compared to the Tet season in 2022. The company added that because Bach Hoa Xanh did not operate for 30 days/month in January and February, so the average revenue converted will be VND1.3 billion/store/month.
As of the end of February 2023, the system has 1,189 Mobile World stores (including 100 Topzone); 2,287 Dien May Xanh stores (including 1,035 DMS stores); 1,729 Bach Hoa Xanh stores; 504 An Khang stores; and 64 AVAKids stores.
It is known that at the end of 2022, the Company owns 1,190 Mobile World stores (100 Topzone stores); 2,284 Dien May Xanh stores; 1,728 Bach Hoa Xanh stores; 500 An Khang stores; 64 AVAKids and 12 AVASport stores.
Can buy treasury shares in 2023 if share price is attractive
Previously, the Company announced the document of the Annual General Meeting of Shareholders in 2023 with a business plan of VND135,000 billion in revenue, up 1% over the same period and expected profit after tax of VND4,200 billion, up 2% compared with 2022 (assuming purchasing power will recover positively from the third quarter of 2023).
The company shared, according to preliminary records in the first months of the year, the purchasing power of phones and electronics is falling more sharply than expected of the Company. In particular, the cautious sentiment and delay in spending decisions for durable and high-value products are taking place even for the middle and high-end customer group due to the decline in consumer confidence in the face of challenges. Meanwhile, customers with needs in the low-income segment have more difficulty in accessing consumer loans through the form of installment purchase.
For essential goods such as food, FMCG and pharmaceuticals, the trend of saving and cutting consumer spending also occurs by buying products with the same use at lower prices.
Moreover, after the restructuring, Bach Hoa Xanh retail chain is showing more persistent signals during the difficult market period, continuing to set a plan to increase double-digit revenue and strive to reach breakeven point by the end of the of 2023.
For An Khang drugstore chain and AVAKids retail store chain of mother & baby products, the Company will suspend expansion and only keep stores with positive profits. In which, in 2023, the chain will increase revenue per point of sale, strictly control operating costs to improve business performance and reduce losses.
Notably, the Company said that if the cash flow situation allows and the stock price is attractive, the Company plans to buy back treasury shares to reduce the number of outstanding shares. On the contrary, if the cash flow situation does not allow and the stock price is not attractive enough, the Company will not buy back treasury shares.
N.Nga
Source: VITIC/Tinnhanhchungkhoan