Mobile World (MWG) has not announced a profit for 7 consecutive months, just escaped a loss in Q2

Mobile World Group (MWG) is one of the companies that regularly and fully discloses its business results on the Vietnamese stock exchange. In addition to publishing quarterly financial reports as required by the government, MWG also publicly updates its monthly business results to investors.

However, MWG's business results in recent months have shown an anomaly. For several consecutive months, the company has not disclosed its profits, only reporting revenue.

In the first half of 2023, MWG recorded a 20.1% decrease in net revenue compared to the same period last year. In July, the company continued to experience a revenue decline of 19%. In total, MWG's revenue in July reached VND 66,490 billion. Cumulative revenue for the first seven months of the year only reached 49% of the full-year plan.

For 7 consecutive months, Mobile World Group (MWG) has not announced its Q2 profit, escaping losses thanks to deposit refunds (Figure 1). — Mobile World Group (MWG) has not released any information for 7 consecutive months (Photo: Provided).

The Mobile World and Dien May Xanh retail chains recorded revenue of 48.3 trillion VND in the first seven months of the year, a 26% decrease compared to the same period last year. In July alone, revenue for both chains decreased by as much as 20% compared to the same period last year.

For the Bach Hoa Xanh chain, cumulative revenue for the first seven months of the year reached VND 16.5 trillion, a 9% increase compared to the same period last year. In July 2023 alone, revenue reached VND 2.8 trillion, a 20% increase compared to the same period last year.

This July, MWG continues to not disclose its monthly profit figures, as it has done previously. This change began at the start of 2023 when MWG's business results showed a clear decline.

Estimated full-year profits are down 80%, with profits falling 98% in the first six months alone.

MWG's declining business results began in early 2023. In the first quarter, MWG recorded after-tax profit of 21 billion VND, a decrease of 98% compared to the same period last year.

Entering the second quarter, the gloomy situation continued to worsen, with consolidated net revenue reaching only VND 29,465 billion, a decrease of 14.2% compared to 2022. Net profit after tax was also a mere VND 17 billion, a decrease of 98% compared to Q2/2022.

The significant decline in MWG's business results had been predicted by several securities companies beforehand, but it seems the situation is much more serious than anticipated.

Specifically, BVSC Securities, in a market report, projected that MWG's after-tax profit for 2023 would only reach VND 1,231 billion, a decrease of 80% compared to 2022. However, both Q1 and Q2 business results showed a 98% decline compared to the same period. This further demonstrates that MWG's profit decline is more severe than BVSC's previous forecast.

The business plan for the second half of the year lacked breakthroughs, but the company avoided losses thanks to interest from deposits.

In its business plan for the remaining months of the year, MWG stated that chains such as The Gioi Dien May (Mobile World), Dien May Xanh (Electronics World), and Topzone are pursuing a competitive pricing strategy to meet customers' savings needs. MWG's leadership assessed that this is a difficult time for consumers, so spending will be limited.

The Bach Hoa Xanh supermarket chain will focus on improving the quality of fresh produce to increase customer repeat business. Regarding the An Khang pharmacy chain, MWG has no plans to expand this year.

It is evident that MWG's business plan lacks a specific breakthrough direction for the remaining months of the year.

Another noteworthy point is that in the most recent second quarter, the company recorded relatively strong growth in financial income, from 298 billion to 585 billion VND, mainly due to interest on deposits. This interest income contributed nearly 300 billion VND to financial revenue in the second quarter alone. Meanwhile, profit in the second quarter only reached 17 billion VND. Therefore, without this profit, MWG's second-quarter business results would have shown a significant loss.

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