Mobile World (MWG) recalls bonus shares of resigned employees

Mobile World recovers bonus shares of resigned employees

Recently, Mobile World has approved a plan to buy back 328,789 shares under the ESOP stock recovery program of resigned employees.

On May 17, 2024, Mobile World also announced a reduction in charter capital from VND 14,633.77 billion to VND 14,622.44 billion. The amount of charter capital reduced is equivalent to 1,132,539 outstanding shares.

Mobile World cuts nearly 5,000 employees, withdraws employee bonus shares (Photo TL)

The number of shares decreased due to the company destroying the existing number of treasury shares. At the end of the first quarter of 2024, Mobile World recorded the number of treasury shares as 1,132,539 shares, equivalent to a value of VND 11.33 billion.

The move to recall ESOP shares of Mobile World took place in the context that the unit has been continuously cutting staff on a large scale. In the first quarter of 2024 alone, Mobile World cut 4,853 employees. The remaining number of employees is about 60,051 employees.

Previously, in 2023, Mobile World also recorded a reduction of nearly 15,000 employees. From over 80,000 employees at the end of 2022 to just over 65,000 employees at the end of 2023.

Exceeding 2024 plan despite rising costs

Regarding business activities in the first quarter of 2024, Mobile World recorded revenue of VND 31,486.5 billion, an increase of 16.2% over the same period. Profit after tax reached VND 903 billion, an increase of 41.4 times compared to 2023.

Gross profit in the period reached VND6,712.6 billion, up 28.7% over the same period last year. Notably, financial revenue in the period increased by 62%, reaching VND585.3 billion.

On the contrary, financial expenses also increased by 26.8%, accounting for 375.2 billion VND. Business management expenses and sales expenses also increased by 11.4%, accounting for 5,689.8 billion VND.

It can be seen that cutting financial costs and increasing gross profit are the main driving forces to help Mobile World's profits recover in the first quarter of 2024.

Compared to the 2024 business target, Mobile World set a revenue target of 125,000 billion VND. Profit after tax is expected to be 2,400 billion VND. Thus, Mobile World has completed 37.6% of the 2024 plan.

Source: https://www.congluan.vn/cat-giam-5000-nhan-su-the-gioi-di-dong-mwg-thu-hoi-co-phieu-thuong-cua-nhan-vien-nghi-viec-post296741.html