2,000 stores had to temporarily close because of the epidemic, Mobile World decided to cut shareholders’ dividends in half to prioritize business cash flow.

Tram Ho

On August 14, the Board of Directors of Mobile World Investment Joint Stock Company issued a resolution on changing the ratio of cash dividends to shareholders.

Accordingly, Mobile World will pay a dividend of 5%/par value, equivalent to 500 VND/share. This dividend rate is lower than the resolution passed in early July 2021, which is 1,000 VND/share. Previously, at the 2021 General Meeting of Shareholders, Mobile World shareholders agreed that this year’s dividend, if divided in cash, is a maximum of 1,500 VND/share.

2.000 cửa hàng phải tạm đóng cửa vì dịch bệnh, Thế Giới Di Động quyết định cắt một nửa cổ tức của cổ đông để ưu tiên dòng tiền kinh doanh - Ảnh 1.

Mobile World currently has more than 475 million shares outstanding. According to the old plan, the company needs to spend about 475 billion VND to pay dividends to shareholders, and according to the new resolution, the amount to be divided is halved to about 237 billion VND.

Mobile World said that the reason for the change in the dividend payout ratio is that the company prioritizes ensuring cash flow for business activities in the context of prolonged risks of the Covid-19 epidemic and complicated developments. .

In the business results report, the company said that the strict social distancing under Directive 16 for all 19 southern provinces and Hanoi has had a great impact on the business results of Mobile World. In the near future, nearly 2,000 The Gioi Di Dong and Dien May Xanh stores have to temporarily close to prevent the epidemic or limit sales at the end of July while these chains are the mainstays of the Company’s profits. company.

In contrast, the epidemic also helped the number of visitors to Bach Hoa Xanh chain skyrocket in recent times. In July alone, Mobile World serves 800,000 to 1 million visitors per day.

2.000 cửa hàng phải tạm đóng cửa vì dịch bệnh, Thế Giới Di Động quyết định cắt một nửa cổ tức của cổ đông để ưu tiên dòng tiền kinh doanh - Ảnh 2.

Mobile World’s debt increased for 5 consecutive quarters and was the first time to increase sharply in Q2

As of June 30, 2021, Mobile World has about VND 18,100 billion in cash and savings accounts at banks.

On the capital side, Mobile World’s short-term debt is currently nearly 20,000 billion VND and marks 5 consecutive quarters of increase in borrowing, nearly 2 times higher than at the end of June 2020. Due to the nature of the retail business, Mobile World’s short-term loans are unsecured loans with floating interest rates for the purpose of supplementing working capital needs.

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Source : Genk