Mobile World Investment (MWG) Q4 2021 earnings summary

Executive summary

• FY2021 net revenue reached VND122,958bn, up 13% YoY; net profit after tax was VND4,901bn, up 25% YoY.

• Online revenue totaled VND14,370bn, up 53% YoY and representing 12% of total revenue.

• Store count reached 5,306 at 31 Dec 2021, up 1,140 from year-end 2020.

Financial highlights

• FY2021 revenue was VND122,958bn versus VND108,456bn in 2020; net profit after tax was VND4,901bn versus VND3,920bn.

• January 2022 set a monthly record with net revenue above VND16,000bn and online sales of VND2,300bn.

• TGDD and DMX generated record January sales of VND13,500bn; BHX recorded approximately VND2,400bn in sales.

Outlook and guidance

• 2022 targets: net revenue VND140,000bn, up 14% YoY; net profit after tax VND6,350bn, with 30% YoY growth indicated.

• Online penetration target is 15%, with online sales growth targeted at 50% YoY.

• TGDD and DMX are expected to contribute 75%-80% of revenue; BHX is expected to contribute 20%-25%.

• BHX plans to stop opening stores in 2022, strengthen its operating foundation and prepare for expansion from 2023.

• An Khang is to receive investment in existing-store improvements and new formats following consolidation into results; scaling depends on proving business efficiency.