The Chairman of The Gioi Di Dong “explained” to shareholders and employees: Consumer sentiment is thrifty, MWG will end experiments with no growth potential

Mobile World Investment Joint Stock Company (stock code: MWG) has announced its annual report for 2022. In which, Mr. Nguyen Duc Tai – Chairman of the Board of Directors of the Company has expressed his heart to shareholders and all employees.

Mr. Nguyen Duc Tai said, Mobile World Group has just experienced a challenging year in 2022 due to the objective factor being the unfavorable macro situation and the subjective reason being the drastic restructuring decision. for leaner and more efficient operation. The company recorded net revenue of more than VND 133,400 billion and maintained a profit after tax of more than VND 4,100 billion, corresponding to an 8% growth in revenue and a 16% decrease in net profit compared to the same period in 2021. Since its listing, MWG has only completed 95% of the revenue target and 65% of the profit target compared to the plan.

“After years of high growth and continuous efforts for expansion, the “headwinds” in 2022 are an opportunity for the Company to focus on reviewing business operations and strengthening internal resources of the business. As the leading retailer in Vietnam with a revenue of 5.5 billion USD and a network of more than 5,500 stores nationwide, it is not easy to constantly explore, create, dare to experiment and accept to correct mistakes. indispensable to create new growth engines and help MWG develop significantly in the future”, shared Mr. Nguyen Duc Tai.

On the positive side, MWG’s revenue growth in 2022 is greatly contributed by Dien May Xanh Supermini chain with more than VND 10,000 billion in revenue from more than 1,000 points of sale after just over 2 years of testing. This year also marks the initial success of TopZone when contributing more than VND 2,600 billion in revenue from 100 points of sale. As a result, total revenue from Apple products throughout the MWG system also grew impressively by about 40% compared to the previous year.

Both thegioididong.com and Dien May Xanh chains strived to record double-digit growth over the same period, bringing in total revenue of VND105,000 billion for the Group.

However, the Chairman of Mobile World also frankly acknowledged, MWG still has things that have not been done well, adjustments that need to be made to survive and adapt to rapidly changing business conditions. become strongly cut off so that the company can continue to go further.

In which , the retail chain of food and consumer goods Bach Hoa Xanh has undergone a comprehensive “big surgery”, including rebranding from a “modern market” model to a “mini supermarket”; change the store layout; improve the quality of products and services; Review and deal with stores in the wrong location, inefficient operation…

After restructuring, with 1,728 stores operating at the end of 2022 (a decrease of nearly 20% compared to 2021), the average revenue in the last months of the year of Bach Hoa Xanh is stable at 1.3-1.4 billion dong. / shop. By the end of 2022, Bach Hoa Xanh’s total revenue is still more than VND 27,000 billion, equal to 96% of the record revenue of 2021 (when the demand for essential goods increases during the Covid-19 outbreak). ).

As for the An Khang pharmacy chain, after reaching the scale of 500 pharmacies by the end of 2022, the company has suspended expansion to focus on increasing revenue per point of sale, controlling costs to aim for profitable operation. profit.

In addition, MWG also shrinks new chains, ending those experiments that do not have large enough growth potential in the future.

“I believe that each success or failure brings a profound lesson, a valuable experience that helps the successor leadership team to stay alert, cautious and disciplined in business management decisions.” , Chairman of MWG confided.

Commenting on 2023, Mr. Nguyen Duc Tai said that economic uncertainties, geo-political conflicts, and energy shortages will continue to negatively affect inflation, interest rates, and exports. Exports, employment, etc. Therefore, the thrifty consumer sentiment as well as high business costs will be difficult to change this year.

Adverse macroeconomic developments will affect all businesses in the economy. At that time, businesses that are not strong enough to withstand and cannot compete will have to leave the market. Mr. Tai committed, “In difficulties, there are always opportunities, it is the initiative and focus on solving most of the internal problems along with solid financial advantages that will be the foundation for MWG to be ready for a breakthrough. when production – consumption activities recover”.

MWG’s upcoming AGM documents show that in 2023, MWG plans to grow only 1 digit compared to 2022. Specifically, net revenue is expected to reach VND 135,000 billion – an increase of 1% and VND 4,200 billion in EAT – 2% increase compared to 2022. Notably, MWG continues to expect Bach Hoa Xanh to break even by the end of 2023. The statement was again issued after 1 year of restructuring Bach Hoa Xanh. However, the unpredictable volatility of the market will be a challenge for the “promise” of MWG.

In the context of the business situation facing many challenges, MWG’s 2022 dividend has decreased significantly compared to the previous year. The company plans to submit to shareholders for approval the 2022 dividend payment plan at the rate of 5% in cash (one share will receive 500 VND), equivalent to about 732 billion VND. Previously, this retail business paid dividends in 2021 to shareholders at the rate of up to 110% including 10% in cash and 100% in shares. In addition, MWG also has to stop the ESOP habit due to negative growth in 2022.