Mobile World comprehensive restructuring

Mobile World is forced to take action to escape the unfavorable market situation in 2023, aiming for 2024 to increase revenue, market share and strongly improve profits.

Mobile World has actively entered the restructuring process.

Accordingly, Mobile World focuses on maintaining core activities, chains, stores, and product lines that create value for the company now or in the near future. In addition to reviewing and eliminating waste, the company will stop unnecessary activities and postpone investment in medium and long-term R&D projects during this period.

The Gioi Di Dong also reallocates all resources to ensure business focus and efficiency, and appropriately resolves resource surplus issues arising from restructuring. In particular, the company is also ready to reinvent and change its business methods to meet the actual needs of customers in the new business context.

The BHX, An Khang and AVAKids chains have completed the review of store closures in November. Thus, the number of stores at the end of November of these chains will be maintained stable from December 2023. For the TGDĐ, Dien May Xanh and Topzone chains, the company closed nearly 150 stores in October and November (compared to the end of the third quarter) and will continue to close some stores that are ineffective in terms of revenue and profit in December to stabilize operations, preparing for the peak sales season of the Lunar New Year 2024.

Regarding costs related to store closures in Q4, they will be fully reflected in 2023 results, so these costs will not impact 2024.

Mobile World has actively entered the restructuring process to streamline its apparatus, with the aim of helping the company adapt quickly and be more resilient to the volatile market.

The November 2023 report recorded MWG's total revenue at VND9.9 trillion, equivalent to November 2022. In the 11 months, the TGDĐ and Dien May Xanh chains had a total revenue of VND76.7 trillion, down 21% over the same period. In November alone, the total revenue of TGDĐ and Dien May Xanh reached more than VND6.5 trillion, down compared to October, mainly due to the cooling demand for iPhones after the peak of new product launches.

Regarding the Bach Hoa Xanh chain, cumulative revenue in the first 11 months of the year reached 28.4 trillion VND, up 16% over the same period. Bach Hoa Xanh revenue in November alone was more than 3 trillion VND, up 35% over the same period. Average store revenue reached 1.75 billion VND.

KIM THANH

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