Mobile World Investment (MWG) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was VND118.280tn, down 11% YoY and 12% below 2022; revenue reached 88% of target. NPAT was VND167.829bn, down 96% YoY and 4% of target.

• 2024 targets: consolidated revenue of VND125,000bn and NPAT of VND2,400bn.

Financial highlights

• Gross profit was VND22.521tn versus VND30.862tn in 2022; operating profit was VND1.018tn versus VND6.575tn.

• Profit before tax was VND689.7bn versus VND6.056tn; NPAT attributable to ordinary shareholders was VND167.669bn versus VND4.100tn, with EPS of VND115 versus VND2,810.

• Finance income was VND2.167tn versus VND1.313tn; finance expenses were VND1.556tn versus VND1.383tn, including interest expense of VND1.448tn versus VND1.362tn.

• Online revenue was VND16,899bn in 2023, down 11% YoY and 14% of total revenue.

Segment performance

• Thegioididong and Dien May Xanh generated VND83,540bn in 2023, or 70.6% of revenue; Q4 same-store sales decline narrowed to 5% YoY from 15% in Q3.

• Bach Hoa Xanh revenue was VND31,610bn in 2023; Q4 revenue grew 8% QoQ and same-store sales rose 34% YoY.

• Bach Hoa Xanh reached normalized break-even in Dec. 2023; Q4 operating EBITDA doubled QoQ. Monthly revenue per store reached ~VND1.8bn, up 9% QoQ and over 30% YoY.

• Thegioididong and Dien May Xanh gross margin was 17% in Q3 and Q4; Q4 online penetration was 19%, and store count fell to 3,268 from 3,451 in Q3.

• Bach Hoa Xanh Q4 gross margin was 24%, down from 25% in Q3 as fresh produce mix increased; fresh produce sales volume and value rose 35%–40% YoY in 2023.