Mobile World Investment (MWG) Q4 2022 earnings summary

Executive summary

• FY22 net revenue rose 8% YoY to VND133,405B, while net profit after tax fell 16% to VND4,102B; revenue and profit targets were 95% and 65% achieved, respectively.

Financial highlights

• Online revenue reached VND18,900B, up 32% YoY and equal to 14% of total revenue.

• Revenue mix: thegioididong.com and Topzone 26%, Điện máy XANH 51.7%, Bách hóa XANH 20.3%, and other chains 2%.

• Product mix: phones, accessories and other ICT devices 40%; consumer electronics 32%; food and FMCG 20%; other products 8%.

Outlook and guidance

• FY23 net revenue guidance is VND135,000B–VND150,000B and NPAT VND4,200B–VND4,700B; recovery assumed from mid-Q3 in the best case or Q4 in the base case.

• Cost controls target staffing, rent, electricity use and inventory, to limit operating and financial expenses.

• Bách hóa XANH is expected to contribute 20%–25% of revenue and reach profitability in Q4’23; An Khang and AVAKids will focus on reducing losses and moving toward breakeven.