Bach Hoa Xanh "brought money home to mom" in the first year but still accumulated losses

(Dan Tri) - In the first year, Bach Hoa Xanh made a profit, contributing to the overall profit of The Gioi Di Dong Group. However, this chain still had an accumulated loss of more than 8,651 billion VND.

Mobile World Investment Corporation (stock code: MWG) has just announced its consolidated financial report for the fourth quarter of 2024.

According to the report, the Bach Hoa Xanh chain will no longer record pre-tax losses in 2024. Previously, at the end of September 2024, Bach Hoa Xanh still had an accumulated loss from the beginning of the year of more than 8.4 billion VND.

Bach Hoa Xanh escaped loss in the first year (Photo: BHX).

The parent company, Mobile World Investment Corporation, said that in 2024, the Bach Hoa Xanh chain achieved a full-year profit for the first time at the corporate level and contributed to the group's overall profit. The chain's total revenue increased by more than 30% over the same period despite not opening any new stores, reaching more than VND41,000 billion. The chain has maintained 3 consecutive quarters of profit since the second quarter of 2024 despite continuous losses before that.

Although it has "brought money home to its mother" as shared by Mr. Nguyen Duc Tai - Chairman of Mobile World - Bach Hoa Xanh still needs time to erase the accumulated loss of more than VND 8,651 billion since its operation until the end of 2024. As of December 31, 2024, Bach Hoa Xanh has 1,770 stores, an increase of 72 stores compared to the end of last year.

In 2024, Mobile World Investment achieved net revenue of VND 134,341 billion and after-tax profit of VND 3,733 billion, up 14% and 22 times respectively compared to the previous year. Profit increased sharply due to increased gross profit, optimized operating costs, and low profit last year.

Of which, the two chains The Gioi Di Dong and Dien May Xanh still maintained revenue growth of 7%. The AVAKids chain (selling mother and baby products) also brought in revenue of 1,200 billion VND.

As of December 31, 2024, Mobile World Investment had VND 34,221 billion in idle cash, up 41% compared to the beginning of the year, accounting for 49% of total assets. In 2024, the company earned nearly VND 1,840 billion in interest on deposits.

Regarding debt, the group has no long-term financial loans. Short-term debt by the end of 2024 is VND 27,300 billion, up 43% compared to the beginning of the year. These are short-term unsecured loans with floating interest rates to supplement working capital. The debt/equity ratio is 0.97 times.

Source: https://dantri.com.vn/kinh-doanh/bach-hoa-xanh-nam-dau-tien-mang-tien-ve-cho-me-nhung-van-lo-luy-ke-20250124161207795.htm