Mobile World Investment (MWG) Q3 2023 earnings summary

Executive summary

• 9M23 revenue fell 16% YoY to VND86,858bn; NPAT declined 98% to VND78bn, equivalent to 64% and 2% of FY23 revenue and NPAT targets, respectively.

• Preliminary October revenue exceeded VND11tn, marking the first month of positive YoY growth in 2023.

Financial highlights

• 9M23 net revenue was VND86,858bn versus VND102,816bn in 9M22; NPAT was VND78bn versus VND3,483bn.

• Online revenue reached VND12,166bn, down 14% YoY and 14% of total revenue.

• FY23 targets: VND135,000bn revenue and VND4,200bn NPAT; 9M achievement was 64% and 2%, respectively.

Outlook and guidance

• October preliminary revenue topped VND11tn, the first positive YoY month in 2023; TGDD/DMX revenue was ~VND7.6tn and BHX exceeded VND3tn, each up >5% MoM.

• October BHX average monthly sales exceeded VND1.7bn per store; An Khang and AVAKids recorded their fourth and fifth consecutive months of revenue growth, respectively.

• EraBlue operated 16 stores; full-month stores averaged ~VND4bn monthly revenue and reached store-level EBITDA breakeven.