AsemconnectVietnam - Bach Hoa Xanh chain of Mobile World Joint Stock Company (code MWG - HOSE) may continue to lose money in 2023 and 2024.

Vietcap Securities (VCSC) has released an analysis report for MWG's Bach Hoa Xanh chain with a forecast of a net loss of more than VND996 billion in 2023 (previous forecast of a loss of VND814 billion in 2023) and in 2024 there will be a net loss of VND284 billion (previously forecasted profit of VND525 billion).
Explaining the above forecast, VCSC said that higher-than-expected selling costs at the Bach Hoa Xanh chain affected the previous optimistic view on the ability to break even by the end of 2023, although sales/store increase sharply in the first 9 months of 2023.
However, this independent analyst also said that the Bach Hoa Xanh chain continuously builds a network of customers and fresh food suppliers. In particular, the combination of rewards and signals has helped the Bach Hoa Xanh chain attract customers over time and promote revenue growth.
Another notable development, SSI Research forecasts that the Bach Hoa Xanh chain will lose about VND1.1 trillion in 2023, reach VND441 billion in profit in 2024 and will grow from 2025. In particular, in In October 2023, revenue/month/store increased to VND1.7 billion compared to an average of VND1.6 billion to VND1.65 billion in the third quarter of 2023 and VND1.4 billion in the second quarter of 2023.
Previously, at the 2023 Annual General Meeting of Shareholders on April 8, 2023, Mobile World said that the Bach Hoa Xanh chain after restructuring showed signs of being more resilient in the context of a difficult market. The business still aims to grow double-digit revenue and reach break-even point for this chain by the end of 2023.
However, at the end of the first 9 months of 2023, the Bach Hoa Xanh chain recorded a loss of VND904.91 billion, accumulated from 2016 to present, the chain has accumulated a loss of VND8,299.87 billion and has not had a profitable year since its inception.
Expected to close 200 stores in the fourth quarter of 2023
On November 24, Mobile World Company announced its business situation for the first 10 months of 2023 with signs that revenue continued to decline and continued to interrupt the chain of profit announcements.
In October 2023, Mobile World Company recorded revenue of VND11,190 billion, an increase of 2.7% over the same period (the same period recorded revenue of about VND10,900 billion).
Accumulated in the first 10 months of 2023, Mobile World Company recorded revenue of VND98,046 billion, down 14% over the same period and only completed 73% of the revenue plan of VND135,000 billion in 2023.
In addition, if considered by chain, in the first 10 months of 2023, the Mobile World and Dien May Xanh chains recorded revenue of VND70,200 billion, down 21% over the same period; Bach Hoa Xanh chain recorded revenue of VND25,300 billion, up 13% over the same period last year.
Mobile World said that the Company will actively implement restructuring activities in the fourth quarter to optimize costs, improve operational efficiency and proactively adapt to the new business context with many challenges and fluctuations.
Accordingly, the Company will consider closing about 200 stores in the fourth quarter of 2023, these are ineffective stores in terms of revenue and profits.
Previously, in a meeting with investors to report on the business situation in the third quarter of 2023, Mr. Nguyen Duc Tai, Chairman of the Board of Directors of Mobile World Company, said that the situation in the fourth quarter will still be better than the first quarter. a little, but it will be difficult to expect strong growth during Christmas and Tet like in the fourth quarter of previous years when purchasing power in Vietnam has not been able to recover.
In addition, Mr. Doan Van Hieu Em, member of the Board of Directors and General Director, added that the fourth quarter of 2023 will not be positive, with weak growth or even no growth compared to the fourth quarter of previous years because of the decline market.
Previously 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%.
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.
Regarding personnel, as of September 30, 2022, Mobile World Company recorded 80,231 employees; As of December 31, 2022, there are 74,008 employees remaining; By March 31, 2023, there were 68,048 employees left; June 30, 2023 recorded 68,026 employees; and as of September 30, 2023, recorded 68,374 employees.
Thus, within 1 year, Mobile World Company has reduced 11,857 employees, or 14.8% reduction in staff size compared to September 30, 2022. In particular, in the first 9 months of 2023 alone, Mobile World reduced 5,634 employees.
N.Nga
Source: Tinnhanhchungkhoan.vn