After 8 consecutive years of losses at Bach Hoa Xanh, Chairman of Mobile World Nguyen Duc Tai believes that this year the chain will grow strongly and make a profit.
Unlike every year, the opening of the Mobile World Joint Stock Company's shareholders' meeting on the afternoon of April 13 this year was a thank you and apology from Chairman of the Board of Directors Nguyen Duc Tai.
"I thank the shareholders who have had enough faith to stay with MWG despite many fluctuations in the business, but I also apologize for not bringing investment efficiency to everyone last year," Mr. Tai confided.
According to Mr. Tai, after years of comprehensive restructuring of the system, the business will operate effectively this year. The company is operating in the right direction and is confident that whether purchasing power increases or decreases, "water still flows to low places". In addition to focusing on improving services and products, promoting revenue growth, the company also continues to sharply reduce major costs such as logistics or store operations.
Among dozens of questions about Mobile World's subsidiaries, most shareholders are most concerned about business operations and capital sales at Bach Hoa Xanh.
"When will Bach Hoa Xanh make a profit of 1,000 billion?", "Does the company have a plan to increase the capital sale ratio of Bach Hoa Xanh to 20%?", "Will Bach Hoa Xanh open more stores this year?"... are questions asked by shareholders.
In response, Mr. Nguyen Duc Tai said that if the company wanted to sell capital at 10-20%, it would not have closed the 5% rate in the last offering.
"Bach Hoa Xanh has started to make a profit and there is no reason to receive more money. If Bach Hoa Xanh reaches a profit of 1,000 billion VND, it will IPO," said Mr. Tai.
The recent purchase of 5% of Bach Hoa Xanh's capital by a foreign fund, according to the company's leaders, did not affect the company's business operations but instead increased many benefits. In particular, the foreign investment fund provided financial support, connecting domestic and international retailers with the chain. Currently, the cash flow from the above capital sale has begun to "flow" directly into the company.
In the first quarter, the chain's business performance has improved significantly. Bach Hoa Xanh has started to make a profit. From now until 2025, the chain will open 100 more stores and "bring money home to mom". In the next 2 years, Bach Hoa Xanh can achieve a profit of 1,000-2,000 billion VND.
In 2023, Bach Hoa Xanh's revenue will reach 31,600 billion VND - the largest among similar retail chains on the market. Bach Hoa Xanh's major partners, such as Minh Phu, Kido, CP... all admit that this is the chain that brings them the largest retail sales.
However, when asked about the longer-term plan of the next 5 years for this retail chain, Mr. Tai did not dare to say anything in advance because he was afraid that if it did not meet expectations, shareholders would lose confidence.
Regarding the The Gioi Di Dong and Dien May Xanh chains, the company said that it has undergone a comprehensive restructuring and cost optimization, so the first quarter profit will be positive and a specific report will be released at the end of April. These two chains continue to be the pillars contributing about 65% of revenue and bringing in the main profit for the company this year.
For the An Khang pharmacy chain, the company expects double-digit revenue growth and a break-even point before December 31. In 2024, the An Khang pharmacy chain can enter an expansion phase if it operates stably, effectively and builds a successful business model. The same is true for the Avakids chain.
With the Era Blue chain (operating in Indonesia), it hopes to become the number 1 electronics retailer in Indonesia this year.
Mr. Nguyen Duc Tai (far left) answered MWG shareholders on the afternoon of April 13. Photo: Thi Ha
Assessing the purchasing power in the general market, MWG leaders said that it is not very optimistic but there are still many opportunities for the company. With a large proportion of revenue and customer groups, the company still has many opportunities to increase product lines, implement promotional programs and good financial solutions, helping the company increase both the quantity and value of orders.
In addition to dominating offline, businesses are also pushing online and are outlining competitive strategies for both methods.
This year, Mobile World plans to have revenue of VND 125,000 billion, up 6% over the same period, and after-tax profit of VND 2,400 billion, up 13.29 times compared to the actual figure in 2023.
To increase ownership value and benefits for shareholders, the company will use up to VND100 billion to buy back outstanding shares. According to Mr. Tai, this is not a tool to support stock prices. Because regardless of whether the stock price is high or low, the company still carries out this activity. The company authorizes the board of directors to decide the time and purchase price in accordance with legal regulations and market conditions.
Thi Ha
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