Mobile World Investment (MWG) Q2 2023 earnings summary

Executive summary

• 1H23 net revenue fell 20% YoY to VND56,570bn; net profit after tax dropped 98% to VND39bn, equal to 1% of the FY23 profit target.

• July preliminary revenue exceeded VND9.8tn; BHX sales topped VND2.8tn, up more than 10% MoM, while TGDD/DMX revenue was around VND6.7tn and steady MoM.

Financial highlights

• 1H23 revenue was VND56,570bn versus VND70,804bn in 1H22; 42% of the VND135,000bn FY23 revenue target was achieved.

• 1H23 net profit after tax was VND39bn versus VND2,576bn in 1H22; 1% of the VND4,200bn FY23 target was achieved.

• Online revenue reached VND8,200bn, down 20% YoY and 14.5% of 1H23 total revenue.

Outlook and guidance

• 2H23 priorities for TGDD/DMX/Topzone: sharpen affordable pricing, improve operating performance, offer practical purchase options with brands, and capture demand if purchasing power recovers.

• BHX plans to improve fresh-food quality, attract customers, lift purchase frequency and basket size, and optimize store and logistics costs.

• An Khang and AVAKids intend to grow store sales and streamline operations; Era Blue targets 30 stores by year-end, from 5, while increasing gross margin.