This business plan has just been approved by the Board of Directors of Mobile World Investment Corporation (MWG), and is expected to be presented to shareholders at the upcoming annual meeting.
Although this year's profit target is a sharp increase compared to less than VND200 billion in 2023, this figure is still lower than the average of the 2020-2022 period. In these three years, MWG's net profit was about VND3,900-4,900 billion per year.
In 2023, Mr. Nguyen Duc Tai's retail "empire" recorded a sharp decrease in profits due to market fluctuations, from the impact of participating in price wars to a decline in consumer demand.
MWG's revenue did not decrease too much compared to the same period, still reaching nearly 118,300 billion VND thanks to the "low price strategy" in the second half of the year. However, after-tax profit decreased by 96%, to only nearly 168 billion VND - the lowest level in 10 years.
This result comes from the poor performance of The Gioi Di Dong and Dien May Xanh - two "backbone" electronics and mobile phone retail chains of this enterprise.
Revenue from these two chains reached more than VND28,000 billion and VND55,000 billion respectively, down about 20% compared to 2022. The management board said that with the characteristics of high-value and long-term use products, the products sold in these two chains were heavily affected by weak demand and thrifty consumer psychology.
On the positive side, Bach Hoa Xanh - a retail chain of food and essential consumer goods - broke even in December. The chain's revenue increased by 17% in 2023, reaching VND31,600 billion.
Fresh food grew by 35-40%, which is considered an advantage in attracting customers. The essential consumer goods group also increased by 5-10% thanks to many promotional programs. However, this food and consumer goods retail chain still lost more than 1,200 billion VND. Bach Hoa Xanh's accumulated loss after 8 years is about 8,606 billion VND.
Faced with market difficulties, in the last quarter of last year, Chairman of the Board of Directors Nguyen Duc Tai, General Director Tran Huy Thanh Tung and Mr. Doan Van Hieu Em - CEO of the two retail chains The Gioi Di Dong and Dien May Xanh - received the same salary of less than 4 million VND for three months. Previously, all three key personnel of The Gioi Di Dong did not receive salaries in the third quarter.
Minh Son
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