Mobile World Investment to pour $43m into grocery chain Bách Hóa Xanh

A Bách Hóa Xanh store. Mobile World Investment plans to pour an additional VNĐ 一 trillion into the chain. — Photo vietnambiz.vn

HÀ NỘI — Mobile World Investment Corporation has approved a plan to pour another VNĐ 一 trillion (US$ 四 三 million) into its grocery store chain subsidiary Bách Hóa Xanh to raise the company’s charter capital.

The decision is in line with the capital hike plan for the chain as approved at the company’s annual shareholders’ meeting in  二0 一 八.

The capital increase, expected in the first quarter, will facilitate the company’s development and expansion plan.

Mobile World Investment has continuously pumped money into Bách Hóa Xanh since last year to the tune of VNĐ 七 五0 billion in April and VNĐ 一. 二 五 trillion in November. With another VNĐ 一 trillion, the company will have poured a total of VNĐ 三 trillion into the grocery store chain.

In a recent meeting with investors, the leader of Mobile World Investment said Bách Hóa Xanh’s total revenue was not large (accounting for just  四 per cent of Mobile World Investment’s total revenue) but the food and consumer goods industry is expected to achieve a high growth rate.

Bách Hóa Xanh, incorporated by Mobile World Investment in  二0 一0, recorded a total revenue of VNĐ 六 二 八 billion ($ 二 七 million) in January, up  二 一 四 per cent against the same period last year.

It has more than  四 二0 stores in  一0 provinces, mainly in HCM City and the west and southeast regions. The grocery chain plans to review its store and will close the ones that do not meet expected results by the end of March.

Its strategy is to focus on broad coverage of products and to be similar to traditional markets but with better services, targeting low and medium-income earners.

Mobile World Investment plans to promote the Bách Hóa Xanh brand, expecting to lift the number of grocery stores to  七00 by the end of  二0 一 九.

Mobile World Investment recorded consolidated revenue of VNĐ 一0. 三 六 trillion and net profit of VNĐ 四 五 二 billion last month, up  三 二 per cent in revenue and  五 一 per cent in profit compared to January  二0 一 八.

Ending  二0 一 八, the company earned nearly VNĐ 八 六. 五 二 trillion in revenue, slightly higher than its yearly target of VNĐ 八 六. 三 九, while profit after tax reached VNĐ 二. 八 八 trillion, up  一 一 per cent over the yearly goal.

Shares of the company, coded MWG on the Hồ Chí Minh Stock Exchange, have gained  八 per cent this month to trade around VNĐ 九0,000 ($ 三. 八 六) per share. — VNS