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Profit after tax was up 36 per cent to VND1.97 trillion ($84.34 million) year-on-year.
HCMC-based Mobile World Investment Corporation (MWG), established in 2004 as a seller of mobile phones, has since diversified into a host of other areas including foods, beverages, meat and seafood, and vegetables.
Dien May Xanh, its electronics retail arm, accounts for 55 percent of sales followed by mobile phone stores The Gioi Di Dong and then department store chain Bach Hoa Xanh.
Bach Hoa Xanh, incorporated in 2015, sells vegetables, seafood, meat and fast-moving consumer goods (FMCG). While with VND2.37 trillion ($102 million) it only accounts for 4 percent of the company’s sales, the business is growing at 251 percent.
It has 405 outlets, with the two largest being in HCMC’s Thu Duc and Binh Tan districts.
Bach Hoa Xanh plans to focus on the eastern and southern parts of HCMC and the neighboring provinces of Binh Duong, Long An, Dong Nai, and Ben Tre in future.
By the end of this year it plans to have another 95 stores. A Mobile Word spokesperson told VnExpress that stores that do not do well would be shut down.
Based on the firm’s proclaimed plan of having 550 stores with average monthly revenues of VND790 million ($33,850) each by the end of this year, Ho Chi Minh City Securities Corporation (HSC) estimated Bach Hoa Xanh sales to reach VND4 trillion ($171 million) this year.
But MWG found the department store business less attractive than the two other segments, saying at 14 percent the profit margin of Bach Hoa Xanh is lower than the 17 percent for the cellphone business and 16.7 percent for the electronics business.
A major reason is fresh food is more difficult to manage than the others due to the short shelf life.
Doan Van Tieu Em recently took over as CEO of MobileWorld Joint Stock Company, the subsidiary that manages the cellphone and electronics businesses.
His predecessor, Tran Kinh Doanh, is now CEO of the department store business.