GREEN Department sets a target of VND 500 billion when going to the Central region

In a recent investor meeting, Mr. Vu Dang Linh, Financial Director of Mobile World Investment Joint Stock Company (MWG), said that this year, Bach Hoa Xanh aims to increase the minimum revenue of 7,000 billion to 48,100 billion. On average, every day, their food retail chain and consumer goods are expected to record nearly VND 131.8 billion in revenue.

The Board of Directors expects this subsidiary to contribute about VND 500 billion to MWG. In 2024, Green Department first escaped losses after a positive profit from the second quarter of 2024 and maintained until the end of the year.

According to Ms. Le Thi Thu Trang, Foreign Affairs Director and MWG Business Administration, the net profit in the fourth quarter of the chain increased by more than 20%. Thus, it is estimated that they profit more than 111 billion in this period. Accordingly, the 2024 year profit of the GREEN Department can reach nearly 103 billion dong.

One of the key strategies this year is to open a new 200-400 store. In which, 70% of the new selling point will be located in the Central (ie from Thanh Hoa pouring in), the rest will be the existing localities. Last time, they also tested new market jobs. The average revenue of stores in the Central region after 3 months of opening is 1.2-1.5 billion VND per month, equivalent to 60-75% of the average average across the system.

Mr. Vu Dang Linh said the biggest difference in the shopping habits of the people here is that they are more careful in spending and more interested in price. However, Green Department does not see any risks that affect the new opening plan of the store and they will try to open as soon as possible.

Regarding this plan, a shareholder concerned about increasing coverage can cause the company to carry more costs, thereby affecting profits. However, Mr. Linh confirmed that they knew how to control the new open costs and other expenses, so the increase in coverage did not affect profits. He added that most of the recent newly opened selling points have achieved a breakeven point in 3-6 months.

In parallel with the increase in the new market, this retail chain has also been renovated with existing selling points after many years. Their goal is to improve eye -catching and convenient when shopping for customers. Green Department also focuses on growing revenue of old stores through a variety of product portfolio, focusing on improving the quality of goods …

The process of screening and closing the stores inefficiently continues but the scale will be more modest than the previous year. On a large scale, the company wants to continue to optimize the cost of store and warehouse.

In the online channel, the Board of Directors expected the revenue to increase at least 300% compared to the previous year, ie about 2,775 billion dong. This channel will continue to expand the list of goods, raise the shopping experience and enhance delivery from the points to the buyer’s hand faster.

From the perspective of the analysis group from securities companies, the core issue of the Green Department in the coming time is to increase the average revenue of each store every month because of the 2.1 billion dong in the fourth quarter/2024 enough higher than breakeven. Successful securities (TCSC) evaluate the above figures are not weak but not strong.

“Most of the increase from the season of the last month of the year there are many feasts, but not clearly showing the intrinsic recovery to strengthen the confident level of the winning formula of the Green Department,” this analysts group mentioned. opinion.

Previously, SSI Research also thought that with the current store model, the average revenue of each store of this chain only stabilized around 2.1-2.2 billion. The new opening and cost optimization will play an important role in promoting future growth.

Mr. Nguyen Duc Tai himself, Chairman of the MWG Board of Directors, also said that Green Department is difficult to reach US $ 10 billion in revenue before 2030 with only 150 m2 mini supermarket model today. According to him, consumers will spend on groceries, foods in multi -canal and multi -model selling points, from markets, great supermarkets, mini supermarkets, convenience stores to online channels. This will be the problem that needs to be solved in the future of Green Department.

MWG leaders say the current business environment is very volatile and all business plans are uncertain. However, the trend of shifting shopping behavior from grocery channels and traditional markets to modern retail channels is inevitable.