This is also the first time this chain has surpassed its predecessors to lead in revenue. Wicommerce's figure last year was 30,054 billion VND, and Saigon Co.op reached 30,000 billion VND.
The position of retail giants in supermarkets and convenience stores continues to change in 2023. If in 2022, Saigon Co.op rose to regain the leading position in revenue, it would now have to "cede ” for "rookie" Bach Hoa Xanh of Mobile World (MWG).
Called a rookie because compared to Saigon Co.op, Central Retail, or the Wincommerce chain (formerly Vincommerce), Bach Hoa Xanh is quite young. This is also the first time this chain has surpassed its predecessor to lead in revenue with 31,600 billion VND - an increase of 17% compared to 2022. Wicommerce's figure last year was 30,054 billion VND, and Saigon Co.op reached 30,000 billion VND.
This breakthrough comes one year after Bach Hoa Xanh announced its comprehensive restructuring strategy, especially before the IPO and selling capital to foreign partners.
According to information from Reuters, CDH Investments from China is negotiating to buy back a minority stake in the Bach Hoa Xanh chain from Mobile World Investment Joint Stock Company (MWG). If an agreement is reached, the valuation of the Bach Hoa Xanh chain could reach 1.7 billion USD.
"CDH Investment is planning to buy back 5% to 10% of Bach Hoa Xanh's shares," this source said. Discussions are still ongoing and it is unknown whether this will happen or not.
The first time Mobile World announced a plan to sell a minority capital of the Bach Hoa Xanh chain in 2022. Then this plan was suspended because of unfavorable market conditions. Last year, the resale process restarted and attracted interest from Singapore's sovereign wealth fund GIC and companies from Thailand.
Not only has there been strong growth in sales, according to information from MWG, in December 2023, with an average revenue of 1.8 billion/store, Bach Hoa Xanh also suddenly announced that it had reached its break-even goal after all expenses. costs corresponding to current operating practices and based on core business activities (excluding (i) one-time costs that have been fully accounted for in the 4th quarter and (ii) part of amortization costs wastage related to lifting and lowering store area).
Thus, MWG's "promise" after many years has also been temporarily fulfilled.
Bach Hoa Xanh is known as a new game of Mobile World Investment Joint Stock Company (MWG) when the two mobile and electronics industries enter the saturation stage. Reality also proves the "passion" of this giant.
The first Bach Hoa Xanh store officially appeared on the market at the end of 2015. At the end of 2016, Bach Hoa Xanh completed the testing phase with more than 40 supermarkets concentrated in Tan Phu district, Binh Tan, Ho Chi Minh City. . In 2018, Bach Hoa Xanh said it had found a successful formula. This was also the year MWG's board of directors announced they would devote all their efforts to Bach Hoa Xanh, ambitious to dominate the food retail market.
By 2020, Bach Hoa Xanh - according to Mr. Tai's share - has risen to become the main growth "pedestal" of the whole Company, with revenue doubling compared to 2019 and contributing up to 20% of total revenue. collect MWG.
With the motto of being a convenient shopping destination with affordable prices, Bach Hoa Xanh made a very good impression on consumers in the early years. In 2021, Bach Hoa Xanh continues to be the main growth driver of MWG: Revenue and scale both peaked at VND 28,000 billion, with more than 2,100 stores throughout the system (45 times more after 6 years).
However, when the Covid-19 epidemic broke out and the economic recession caused purchasing power to drop sharply, the Company's index also declined. Not to mention, caught up in the media crisis during the peak period of the 2021 epidemic and the departure of the leader of the organization, Mr. Tran Kinh Doanh, many people believe that Bach Hoa Xanh is an unsuccessful step for MWG. When, also with the old strategy (successfully applied in the mobile and electronics segments), Bach Hoa Xanh, in its process of expanding too quickly, encountered too many problems and challenges.
Rapid growth in sales, but investment pressure causes Bach Hoa Xanh to estimate a loss of about 10% of revenue each year. 2022 is the year the Company has the heaviest loss with nearly 3,000 billion VND. Cumulatively from 2016 to the present, Bach Hoa Xanh lost more than 8,053 billion VND, of which 7,854 billion can be transferred to the next year to offset profits (within 5 years from the date the loss arose).
Despite losses, according to the ranking of the 100 most valuable brands in Vietnam 2023 conducted by Brand Finance, Bach Hoa Xanh ranked number 29 with an estimated brand value of 315 million USD (about 7,490 billion VND). increased by 13.2% compared to last year (279 million USD).
(Theo Nhip song thi truong)
Comments