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Deposit increased by more than 4,000 billion, Mobile World first quarter profit less than 1,000 billion in 2019

After the first 9 months, MWG recorded 77,769 billion dong revenue and 2,976 billion dong EAT, up by 17% and 36% YoY respectively.

Mobile World Investment Corporation (MWG) has just announced its consolidated financial statements for the third quarter of 2019 with business results continuing to grow compared to the same period.

Specifically, MWG recorded revenue of VND 25,486 billion, an increase of more than 20% over the same period. The slower increase in cost of goods helped gross profit margin improve from 17.5% to 19.4%, equivalent to a gross profit of VND 4,905 billion, up more than 33% compared to the third quarter of 2018.

Selling expenses and administrative expenses incurred during the period both increased sharply by 35% and 41% over the same period last year. As a result, MWG saw an profit of 855.5 billion dong, up by 32% YoY. Thus, the third quarter is the first quarter in 2019 of MWG's profit after tax of less than VND 1,000 billion.

For the first 9 months, MWG recorded 77,769 billion dong revenue and 2,976 billion dong EAT, up by 17% and 36% YoY respectively. With the achieved results, MWG has achieved nearly 72% of the revenue plan and 83% of the profit target for 2019.

As of September 30, MWG's total assets increased by 15% YoY to 32,353 billion dong with 82% of short-term assets are mainly inventories of electronics and mobile phones. Cash and cash equivalents decreased slightly from the beginning of the period to VND 3,697 billion while deposits surged from nearly VND 51 billion to over VND 4,275 billion.

Liabilities accounted for 65% of total assets with 21,064 billion VND in which financial loans increased nearly 3,000 billion VND compared to the beginning of the year to 10,033 billion VND. In addition, MWG also accumulated 6,295 billion dong of undistributed after-tax profit besides more than 552 billion capital surplus.

With the model of Bach Hoa Xanh (BHX), this chain of stores is gradually returning to break-even point. With 725 stores as of August 31, 2019, the BHX chain achieved a total turnover of VND 6,120 billion in the first eight months of the year, up 158% over the same period last year. The average revenue per store reached approximately VND 1.5 billion / month (calculated for stores opened before August 1, 2019).

Thanh Ha
* Source: BizLive

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