Vietnam’s leading retailer The Gioi Di Dong (MWG) reports $149mn profit in 2024, 22-fold YoY rise
Vietnam’s leading retailer The Gioi Di Dong (MWG) reports $149mn profit in 2024, 22-fold YoY rise
Vietnam’s leading mobile retail giant Mobile World Investment Corporation (MWG), or The Gioi Di Dong, reported strong business results for 2024, with some US$5.4 billion in revenue, a 14 percent year-on-year increase, and a net profit of nearly $149 million, over 22 times higher than in 2023, according to its financial records.
This photo shows shoppers at an outlet of the Bach Hoa Xanh minimart chain, operated by Mobile World Investment Corporation (MWG), also known as The Gioi Di Dong, in Vietnam. Photo: Duc Thien / Tuoi Tre |
In its quarterly performance report, MWG, whose chairman is Nguyen Duc Tai, achieved net revenue of VND34,793 billion ($1.4 billion) in the fourth quarter of 2024, marking a nearly-10-percent jump compared to the same period in 2023.
The group’s profit after tax surged to VND852 billion ($34 million), a remarkable 9.5-fold spike year on year.
For the full year of 2024, MWG achieved revenue of VND135,225 billion ($5.4 billion), marking a year-on-year surge of nearly 14 percent.
On average, MWG – including The Gioi Di Dong store system, Bach Hoa Xanh minimart chain, An Khang pharmacy chain, Dien May Xanh electronics stores, and other units – generated daily revenue of about VND370 billion ($14.7 million).
After accounting for all expenses, MWG’s net profit for 2024 totaled VND3,733 billion ($149 million), an impressive 22.3-time increase compared to 2023.
Despite operating 221 fewer stores than in 2023 across The Gioi Di Dong and Dien May Xanh chains, the group still experienced revenue growth, which was largely driven by the refrigeration and phone sectors, according to leaders of MWG.
For Bach Hoa Xanh, MWG reported a revenue increase of more than 30 percent year on year, even without opening new stores. The growth was attributed to improvements in the quality of points of sale, as well as enhanced safety and stability of goods.
The financial report also revealed that MWG’s total inventory reached VND22,244 billion ($886.7 million) at the end of 2024, a rise of 20 percent compared to the start of the year.
Mobile phones accounted for the highest inventory value at VND6,308 billion ($251.5 million), up 12 percent from the beginning of the year.
Electronics followed with VND5,669 billion ($226 million), a slight decrease of three percent.
Dry and fresh food, along with consumer goods, were valued at VND2,677 billion ($106.7 million), up 11 percent.
Other items made up the remaining inventory value.
A significant highlight of MWG’s financial performance in 2024 was the sharp increase in cash and bank deposits during the year.
By the end of 2024, MWG held an amount of more than VND24,600 billion ($981 million) in cash and interest-bearing bank deposits, a 16-percent elevation from the beginning of the year and the highest amount in the group's history.
Due to the substantial cash deposits, MWG earned VND1,837 billion ($73.2 million) in interest income in 2024, up VND67 billion ($2.7 million) compared to the previous year.
Among various investment items, bonds and other interest-bearing term investments rose sharply from VND2,644 billion ($105.4 million) at the beginning of 2024 to VND9,530 billion ($380 million) by the end of the year.
However, MWG also reported short-term debts of VND27,300 billion ($1.09 billion) at the end of 2024, a 43-percent increase from the start of the year, which led to interest expenses of VND1,137 billion ($45.3 million) – a 21-percent fall compared to 2023.
By the end of 2024, the group had completely eliminated its long-term debt, a significant improvement from the VND5,986 billion ($238.5 million) recorded at the end of 2023.
Another prominent activity of MWG last year was the introduction of ATM operations at more than 3,000 The Gioi Di Dong and Dien May Xanh stores nationwide, offering customers convenient options for deposits, withdrawals, and transfers with all banks.
