The subject is a member of Mobile World Investment Corporation (MWG) - a famous retail group in Vietnam. The subject specializes in retailing consumer goods and kinds of foods via operating Bach hoa XANH stores chain.By the end of 2021, the subject became a strong retailer in this field with over 2,000 stores in 24 provinces (mainly in big cities). When authorities tightened anti-pandemic measures in Jul 2021, the company recorded sales on average per store of VND 2.1 billion/month. However, after social distancing measures were eased, this figure was only VND 839 million/month at the end of Nov 2021. Bach hoa XANH stores chain encountered challenges in growth. Besides the scandals that happened during the Covid-19 pandemic period, the relocation of people in the southern cities after the pandemic also greatly affected purchasing power.According to Mobile World Investment Corporation's announcements, to increase the performance in all chains, Mobile World Investment Corporation focused on closing ineffective stores and optimizing current operations. There was no exception for Bach hoa XANH stores. Specifically, the subject had 2,140 stores in Apr 2022. However, the number of Bach hoa XANH stores decreased to 1,706 stores (updated to Oct 2023). The revenue of Bach hoa XANH stores chain in Oct 2023 was VND 3 trillion, up by 29% compared with Oct 2022 and up by over 6% compared with Sep 2023. Accumulated in 10 months of 2023, the revenue of Bach hoa XANH stores chain stood at nearly VND 25.3 trillion, an increase of 13% over the same period last year. In addition, online revenue rose by 6% in this period. The revenue on average per store reached over VND 1.7 billion in Oct 2023.Mr. Pham Van Trong - General Director shared that the improvement of this food retail chain is sustainable and comes from the company's capabilities rather than the macroeconomic environment. This makes the subject have more expectations that Bach hoa XANH stores chain will break even by the end of 2023 and then contribute full-year profits to MWG's profits in 2024. To achieve this target, the subject has gradually changed the way the company operates logistics activities to ensure the quality of products, keep a competitive price equivalent to wet markets, develop customer bases and loyal customers through VIP gifts, reduce loss and order cancellation of fresh products and save logistics costs. This is expected to improve not only gross profit margin but also its chain's logistics performance.To prepare for IPO in the upcoming time, Mobile World Investment Corporation has planned to sell 20% shares of Bach hoa XANH stores chain to foreign investors. Singapore's Sovereign Wealth Fund GIC is among investors vying to buy the above-mentioned shares.
Headquarters
MWG Building, Lot T2-1.2, Road D1, Saigon Hi-Tech Park, Tan Phu Ward
Ho Chi Minh municipality; South Eastern Vietnam;
Postal Code: 70000-74000
Contact Details: Purchase the Bach Hoa Xanh Trading Joint Stock Company report to view the information.
Website: http://www.bachhoaxanh.com
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