Mobile World's after-tax profit decreased by 96% compared to the same period last year. Mr. Nguyen Duc Tai and two other leaders did not receive salaries in the third quarter.
The latest consolidated financial report shows that Mobile World Investment Corporation (MWG) recorded revenue of nearly VND30,300 billion. This is the second consecutive quarter that revenue has improved but is still more than 5% lower than the same period last year.
The insignificant decrease in cost of goods sold caused MWG's gross profit to drop 23% to nearly VND5,700 billion. The group of regular expenses tended to increase.
In total, this enterprise's after-tax profit was more than 38.7 billion VND. An improvement compared to the first two quarters of the year, but this level is down 96% compared to the same period.
The management board said that the purchasing power of phones and electronics in general is still weak and has not shown any significant signs of recovery. Customers still have the need to buy and replace damaged products, but they are more cautious and careful in making detailed decisions when the economic situation is still volatile.
With food and fast-moving consumer goods, pharmaceuticals, the trend of thrifty consumption is still taking place. In addition, the company reviewed and processed some surplus equipment after the restructuring of Bach Hoa Xanh and now the value has decreased, no longer ensuring effective use. This does not affect the core business of the Bach Hoa Xanh chain but affects the overall profit of MWG.
"During the period, the company offered many promotions and accepted a reduction in gross profit margin to attract customers and maintain revenue," Mobile World stated in its explanatory document.
A sharp drop in profits caused MWG shares to hit the floor and "no buyers" in today's session. With a market price of VND37,700 per unit, this code is at its lowest price in 34 months since the end of December 2020.
Mr. Nguyen Duc Tai does not receive salary.
According to the consolidated financial report for the third quarter, in the first nine months of this year, Chairman Nguyen Duc Tai earned VND226.3 million. This figure was previously shown in the audited semi-annual financial report. This means that Mr. Tai did not receive a salary in the third quarter.
Similarly, Mr. Doan Van Hieu Em - CEO of two retail chains The Gioi Di Dong and Dien May Xanh, also worked without pay. Mr. Tran Huy Thanh Tung - CEO of MWG, also did not receive any salary.
Meanwhile, Mr. Robert Willett - a member of the Board of Directors, received nearly one billion VND in remuneration in the third quarter. In the 9 months, this person had a salary of more than 2.1 billion VND. Mr. Dang Minh Luom - a member of the Board of Directors, received nearly 100 million VND in the third quarter and 532 million VND in the 9 months.
MWG also started hiring more workers. The number of employees by the end of September was nearly 68,400, an increase of nearly 350 employees compared to the second quarter. However, this level is still lower than the end of last year with more than 74,000 employees. Previously, MWG laid off nearly 6,000 employees in the first quarter of the year and almost the same number of employees at more than 68,000 by the end of the second quarter.
Sold more than 18,000 iPhones in September
Although phone purchasing power is generally weak, MWG said it still sold 18,000 iPhone 15s in September. Revenue from Apple's latest phone line contributed nearly VND600 billion.
Along with iPhone, the two chains The Gioi Di Dong and Dien May Xanh recorded seasonal factors when selling well phones during new product launches and laptops during the back-to-school season. Thanks to that, September revenue reached more than 7,200 billion VND, up 7% compared to August and the highest since June.
In addition to the bright spot from the iPhone product line, Mr. Nguyen Duc Tai's ecosystem has begun to reap sweet fruits from Bach Hoa Xanh after the restructuring period. Cumulative revenue for 9 months reached nearly VND 22,300 billion, up 12% over the same period. This food and essential consumer goods retail chain contributed nearly 26% of total revenue to MWG, higher than the Mobile World chain (including TopZone).
In the third quarter, Bach Hoa Xanh lost nearly VND250 billion in taxes, lower than in previous quarters. In the first 9 months, this retail chain lost VND905 billion in taxes. This figure is a significant improvement compared to the loss of nearly VND3,000 billion in 2022.
Siddhartha
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