Mobile World (MWG) pays 5% dividend, chairman sells 2 million shares

MWG pays cash dividend at 5% rate

Mobile World Corporation (MWG) has just announced that it will close the list of shareholders to pay cash dividends at a rate of 5%. Accordingly, each shareholder owning 1 share will receive 500 VND in cash dividends. The closing date of the list is July 1, 2024, with expected payment on July 10, 2024.

There are currently 1,462.2 million MWG shares in circulation on the market. Thus, it is expected that MWG will have to spend about 731 billion VND to pay dividends to shareholders.

Mobile World (MWG) pays cash dividend at 5% rate (Photo TL)

This cash dividend payment plan of MWG was proposed right after Chairman Nguyen Duc Tai registered to sell 2 million shares. The expected transaction period is from June 7, 2024 to July 5, 2024. After the transaction, Mr. Tai's ownership ratio will decrease from 2.42% to 2.29% of charter capital.

In the dividend payment history of Mobile World, this unit often pays dividends partly in cash and bonus shares issued additionally. In the 2022 dividend payment, MWG paid a cash dividend at a rate of 10% and paid a stock dividend at a ratio of 1:1.

Cut staff, costs still increase

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

During the period, gross profit reached VND 6,712.6 billion, an increase of 28.7% compared to 2023. Notably, MWG's financial revenue increased by 62%, reaching VND 585.3 billion.

During the period, financial expenses increased by 26.8% to VND375.2 billion. Business management expenses and sales expenses simultaneously increased by 11.4% to VND5,689.8 billion.

It is worth mentioning that MWG's employee costs are still increasing despite the company cutting a lot of staff in 2023 and early 2024.

Specifically, MWG has cut nearly 15,000 employees in 2023. By the first quarter of 2024, MWG will continue to cut nearly 5,000 more employees. The company's number of employees is only 60,051 people.

Meanwhile, selling expenses increased slightly to VND4,821.3 billion. Business management expenses jumped 2.7 times, accounting for VND868.5 billion. Total employee expenses accounted for VND2,264.1 billion, an increase of more than VND123 billion over the same period.

Along with the large-scale staff cuts, MWG also had to dissolve many subsidiaries in the ecosystem. Typically, the departure of 4KFarm operating in the field of growing clean vegetables and fruits and Toan Tin Logistics, providing logistics solutions for the group.

Source: https://www.congluan.vn/the-gioi-di-dong-mwg-tra-co-tuc-ty-le-5-ngay-sau-khi-chu-chairman-ban-2-trieu-co-phieu-post298948.html