Mobile World Investment (MWG) Q1 2023 earnings summary

Executive summary

• Q1 2023 net revenue was VND26,990bn, down 26% YoY; net profit after tax was VND21bn, down 99% YoY. Revenue and profit reached 20% and 1% of FY2023 targets, respectively.

• April preliminary revenue was VND9.7tn, up over 20% MoM and back to the December 2022 level; that level was expected to continue in May.

Financial highlights

• Online revenue reached VND3,700bn, down 38% YoY and 14% of total revenue.

• thegioididong.com and Điện Máy Xanh generated VND19,940bn, 73.9% of total revenue; Bách Hóa Xanh generated VND6,370bn, 23.6%.

Outlook and guidance

• FY2023 targets: revenue of VND135,000bn and net profit after tax of VND4,200bn.

• April TGDD/DMX revenue rose 30% MoM; BHX rose 3% MoM, with average monthly revenue of VND1.35bn per store.

• BHX aims to lift sales through fresh-food traffic, tailored FMCG ranges and online shopping, while refining operations, sourcing and logistics for sustainable efficiency.

• AVA and An Khang paused expansion to focus on store sales and efficiency toward breakeven; EraBlue targeted growth from 5 to 50 stores by year-end after standardizing its model.