Mobile World (MWG) 9-month profit decreased by 97.8%, additional debt of 6,300 billion

After 9 months, Mobile World (MWG) has only completed 1.8% of its 2023 target.

According to the Q3 business results, Mobile World (MWG) recorded net revenue of VND30,287.7 billion, down 5.4% year-on-year. High cost of goods sold caused gross profit to decrease by 37.2% to VND4,642.9 billion. Gross profit margin also decreased from 23.1% to 15.3%.

Financial revenue increased to VND618.1 billion, equivalent to an increase of 77.5%. Financial expenses, on the other hand, increased by VND10.3 billion, to VND444.9 billion. Total selling expenses and administrative expenses were reduced by 18.4%, to VND4,620.3 billion.

Mobile World (MWG) profit in the first 9 months of the year decreased by 97.8%, borrowing more than 6,300 billion VND (Photo TL)

After deducting all expenses and income tax, Mobile World's profit after tax was 38.8 billion VND, down 95.7% compared to the same period. It can be seen that if it were not for the sudden increase in financial revenue, MWG would almost certainly have suffered a loss in Q3 from its core business activities.

Accumulated revenue in the first 9 months of the year reached 86,858.3 billion VND, down 15.5% over the same period. Profit after tax reached 77.5 billion VND, down 97.8% over the first 9 months of the year.

Notably, in the first 9 months of the year, many Mobile World chains reported losses, including: Bach Hoa Xanh chain lost 904.9 billion VND, the total accumulated loss to date has reached 8,299.9 billion VND; An Khang Pharmaceutical Joint Stock Company also lost 234.4 billion VND, the accumulated loss to date is 553 billion VND; Tran Anh Digital World Joint Stock Company lost 46.9 billion VND; MWG in Cambodia also lost 96.8 billion VND, the accumulated loss is 701.5 billion VND.

Comparing business results with the target set at the beginning of the year, revenue of 135,000 billion VND, profit after tax of 4,200 billion VND, currently MWG has only completed 64% of the revenue plan and 1.8% of the yearly profit plan.

Short-term debt increased by 6,338.5 billion VND in just the first 9 months of the year

At the end of the third quarter of 2023, Mobile World's total assets reached VND58,644.8 billion, an increase of about 5% compared to the beginning of the year. Of which, cash and cash equivalents decreased by more than half, to VND2,351.9 billion. The company has short-term deposits at banks of up to VND20,901.9 billion.

Inventory during the period decreased from VND25,969.1 billion to VND22,853.5 billion, equivalent to a decrease of 11% compared to the beginning of the year. Inventory price reduction provisions are currently accounting for VND226.8 billion. Notably, MWG's fixed asset index decreased sharply by 24.2%, down to only VND7,370.8 billion.

In the company's capital structure, liabilities still account for a large proportion of 60.3%, equivalent to 35,374.6 billion VND. Mainly short-term debt is 29,475.3 billion VND.

In the first 9 months of the year, MWG tended to increase short-term borrowing. The short-term borrowing index increased from 10,688.1 billion to 17,026.6 billion VND, equivalent to an increase of 59.3%. Thus, in just 9 months, MWG increased short-term borrowing by 6,338.5 billion VND. The company's long-term borrowing did not fluctuate much, accounting for 5,899.4 billion VND.

Equity at the end of the third quarter accounted for VND23,270.2 billion with a relatively large amount of accumulated undistributed profit after tax. Undistributed profit after tax is currently accounting for VND8,070.1 billion.

Source: https://www.congluan.vn/the-gioi-di-dong-mwg-lai-9-thang-dau-nam-sut-giam-978-vay-no-them-6300-ty-dong-post270571.html