Mobile World profits fell for the fifth month in a row, while Bach Hoa Xanh was in short supply due to rain

Mobile World Investment Joint Stock Company has just announced its business results in 9 months of 2019. Accordingly, the consolidated net revenue reached VND 76,763 billion (up 17%) and profit after tax reached VND 2,976 billion (increase). growth of 36%) compared to the same period in 2018. In 9 months, MWG fulfilled 71% of revenue plan and 83% of net profit plan for the whole year.

September revenue and profit decreased

In September alone, Mobile World achieved VND 7,908 billion in revenue and VND 279 billion in after-tax profit. Both numbers are the lowest in the last 6 months. In particular, the company’s profit has decreased for the fifth consecutive month.

Mobile World said that according to the business cycle, sales in the third quarter are often lower than the peak two quarters of the year. Profit decreased due to sharp increase in selling expenses. The third quarter is the time when Mobile World expands to its strongest ever with an additional 257 stores.

According to last year’s figures, the company’s revenue also continued to decline from June to November, similar to this year but on the contrary, profit still kept the momentum.

By the end of September 2019, Mobile World has a total of 2,706 stores, the average expansion speed is 2.8 stores / day. In particular, the Mobile World chain has 1,000 stores, Dien May Xanh 907 stores, Bach Hoa Xanh 788 stores, and ultra-cheap phones with 11 stores. Dien may Xanh has now exceeded the target of 900 stores set for the whole year of 2019.

In addition, Mobile World has completed the display changes for 125 new Dien May Xanh mini stores in the third quarter of 2019, aiming to upgrade nearly 150 Dien May Xanh mini layout stores in the last 3 months of the year. old left.

Expand selling laptops, selling 1,000 units a day

Mobile World currently accounts for just over 20% of the laptop market share, while the industry is growing 2 digits. Therefore, from September 2019, the Company started deploying 26 laptop centers, located in most major provinces and cities nationwide and concentrated in areas with many schools. This is just a showroom displaying product samples, and also acts as a distribution warehouse to serve online sales.

On average, approximately 1,000 laptops are sold every day in the centers and stores of the Mobile World and Green Electronics chain stores. It is expected that the laptop industry will bring the company from VND 2,700 to 3,000 billion in revenue this year, an increase of 25% -30% compared to 2018.

September sold 50 thousand watches

By the end of September 30, 2019, The Gioi Di Dong has 134 watch stores (compared to 85 at the end of August). The total number of products the company sold in September was about 50 thousand units (including fashion watches and smart watches). Accumulated after 7 months, more than 150 thousand watches of all kinds are sold at Mobile World and Dien may Xanh. It is expected that the watch industry will contribute VND 500 to 600 billion in revenue for Mobile World in 2019.

Each Super-cheap Phone store earns an average of VND 500 million / month

After 2 months of testing the business of Super Cheap Phone Shop, the average revenue of 1 Super Cheap Phone shop is more than VND 500 million / month while operating costs are maximized (the store has an area of ​​15 -20m2 and only 1 employee working from A to Z). After initial business results Mobile World said it will continue to test this model in the provincial market in the near future.

Average revenue of Bach Hoa Xanh plummeted due to lack of supply

By store classification, Bach Hoa Xanh has 137 large 300m2 stores, accounting for about 17% of the total number of stores, 788.

The average revenue per store in September reached VND 1.3 billion / month (calculated for stores opened before September 1, 2019). Previously, the average revenue in August was 1.5 billion.

The reason for the decrease in Bach Hoa Xanh’s revenue is due to the seasonality, during the rainy months (August – November), the quality of goods supply and the situation of fresh goods consumption in the peak hours of the evening evening are affected. enjoy.

In order to reduce the influence of the Bach Hoa Xanh crop, we tried to increase the frozen goods area at standard stores and 300m2 large shops. At these upgraded stores (expected to be more than 50 stores in the first phase in October 2019), the number of frozen SKUs being traded will be 5 times higher than that of regular stores.