Mobile World profits surge 33 percent in 2019

By Phuong Dong   January 28, 2020 | 05:00 pm PT
Mobile World profits surge 33 percent in 2019
One of Mobile World outlets on Nguyen Thi Minh Khai Street, District 1, Ho Chi Minh City. Photo courtesy of Mobile World.
Mobile World Investment Joint Stock Company, a major retailer of smartphones and electronics, has reported a 33 percent increase in profit after tax last year to over VND3.83 trillion ($165 million).

The profit is 7 percent higher than the firm's (MWG) target, according to its newly-released financial report for 2019.

MWG's revenues reached VND103.5 trillion ($4.46 billion), 5 percent lower than targeted, but it was an 18 percent rise year-on-year.

Viet Dragon Securities said MWG's grocery business shows long-term promise, which could offset the difficulties faced by the smartphone and electronics segments as they head toward saturation.

The company has expanded a grocery chain, Bach Hoa Xanh, in Ho Chi Minh City and the southern provinces rapidly, the brokerage house noted.

It forecast Mobile World’s consolidated revenues and profit after tax in 2020 to grow by 23 percent and 33 percent respectively on the assumption it will open 100 new electronics stores and 800 grocery stores.

The biggest risk it faces is slow expansion of the grocery business due to logistics difficulties in the central region, Viet Dragon Securities said.

The company’s entry into the fashion accessories market has not been as good as expected because the market size is not large enough, it added.

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