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Mobile World targets 2021 after-tax profit at $204.8 million, up nearly 38%

Khanh Minh Tuesday | 12/22/2020 14:53

Photo: Mobile World

Mobile World targets 2021 after-tax profit to reach VND4,750 billion ($204.8 million), up 37.7 percent compared to the whole-year plan for 2020, the company said on its website.

In 2021, MWG’s Board of Management acknowledges that the business environment is still uncertain as Covid situations have not been done with.

However, MWG will strive for double-digit growth for both top- and bottom-line, despite the fact that we do not have the low-base performance in 2020 as other retailers. 

2021 net revenue is projected at VND125 trillion ($5.38 billion), an increase of 13.6 percent from the plan for 2020.

Next year, the market has potential risk because the Covid-19 pandemic has not completely ended. The company aims to return to double-digit growth despite the crisis.

By end of 2021, its Dien May Xanh Supermini chain is expected to have 1,000 stores nationwide. The mobile phone and electronics retail business are expected to contribute 75 percent of total sales.

Food and consumer staples are projected to grow rapidly and contribute 25 percent of the total revenue by 2021. It target to have 2,500 stores by the end of next year.

 

2020 is really a tough year for the economy due to the global pandemic’s serious impacts, in which the retail sector went through unprecedented turbulences. This leads to negative growth for many companies and some even cannot protect their profitability, the company said.

In this context, MWG is still confident to deliver positive YoY results for both revenue and NPAT in 2020, although the growth rate cannot be as high as that in previous years. As such, MWG is one of few corporates in Vietnam that can maintain continuous profit growth since our inception till now.

In 11 months of 2020, MWG reported profit of nearly VND3.6 trillion ($155.5 million), up 2 percent year on year. Consolidated net revenue was reported at VND99,304 billion, up 7 percent.

Revenue in November reached over VND9,200 billion, improved by 5 percent from a month ago and increased by 10 percent year on year mainly thanks to positive contribution of Bach Hoa Xanh and Dienmayxanh. After-tax profit in November was at VND316 billion, up by more than 12 percent from a year earlier.

The company maintained a cumulative net profit margin of 3.6 percent. With this result, the Mobile World has completed 90 percent of the revenue plan.

The Company will also focus on developing online channels to serve all customer segments including those prefer the outstanding after-sales services and the price-sensitive group; invest in expanding the Bluetronics chain in Cambodia, 4KFarm model and An Khang pharmacy chain. 

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