Mobile World Investment (MWG) Q2 2022 earnings summary

Executive summary

• 1H22 net revenue rose 13% YoY to VND70,804bn, reaching 51% of the FY22 target; net profit after tax increased 1% to VND2,576bn, reaching 41% of target.

• July preliminary net revenue was VND11tn, up 16% YoY; 7M22 revenue reached VND81.7tn, up 14%.

Financial highlights

• 1H22 net revenue was VND70,804bn versus VND62,486bn in 1H21; NPAT was VND2,576bn versus VND2,552bn.

• July net revenue was VND11tn (+16% YoY); 7M22 revenue was VND81.7tn (+14% YoY).

• TGDĐ and ĐMX revenue was VND8.4tn in July (+63% YoY) and VND65.3tn in 7M22 (+21% YoY).

Segment performance

• TGDĐ and ĐMX 1H growth was driven by same-store sales and new stores; tablets, laptops and phones led category growth, while electronics declined.

• TGDĐ and ĐMX Q2 revenue growth was 12% YoY versus 21% in Q1; SSSG was 3% versus 9%, gross margin 21% versus 22%, and online penetration 15% versus 19%.

• BHX Q2 sales volume rose 15%–20% and store traffic 20%–25% versus Q1 and normal 2021 levels; average monthly sales were VND1.1bn per store, reaching VND1.2bn in June.

• An Khang Q2 monthly sales per full-month store were VND500mn–550mn for standalone pharmacies and VND350mn–400mn beside BHX; gross margin remained above 20% in 1H22.

• July BHX revenue was VND2.35tn and 7M22 revenue VND15.2tn, down 14% YoY; July average sales reached VND1.3bn per store.