IR Newsletter 2nd Quarter 2020

 
IR NEWSLETTER
2Q20
2Q BUSINESS RESULTS
Despite being influenced by Covid – 19, Digiworld still grows strongly:
• 2Q20 revenue: reached VND 2,583 billion, increasing 29% year on year.
• Profit after tax of 2Q20: reached VND 48 billion, advancing 36% year on year.
Details are as follows:
– Laptops & tablets
Revenue reached VND 1,080 billion, increasing 65% over the same period last year. The reason is that consumers have chosen to study and work at home, so the demand for computers is increasing, consumers are turning to buying high-end products at higher price.
– Mobile phones
Although the impact of the epidemic reduced the consumption of mobile phones, DGW still achieved a growth rate of 19%, reaching VND 1,146 billion thanks to effective market expansion services for Xiaomi brand, Xiaomi’s market share also increased continuously, reaching more than 10% in the market.
– Office equipment
Revenue reached VND 298 billion, down 7% compared to the same period due to the decrease in shopping demand from businesses affected by the pandemic.
– Consumer goods: Revenue reached VND 59 billion, down 6% over the same period because Digiworld temporarily delayed the deployment of new contracts due to the impact of Covid-19 epidemic.
6M2020 BUSINESS RESULTS
Total net revenue in the first 6 months was VND 4,894 billion (+ 45%yoy) and profit after tax was VND 93 billion (+ 55%yoy), equivalent to trailling EPS of VND 4,521.
With this business result, DGW has completed 115% of the 6-month revenue plan and 123% of the 6-month profit plan, equivalent to 48% and 46% of the yearly plan.
2Q20 FINANCIAL HIGHLIGHTS
– Cash and cash equivalents: quarter-end balance reached VND 266 billion, 3.42 times higher than the same period and the highest ever, showing that DGW’s business has recorded breakthrough growth in this quarter.
– Operating ratios: After the 2nd quarter, Digiworld’s performance indicators were at the best level. Specifically:
+ Receivable days is currently only 26 days, gradually decreasing compared to the same period. This improvement showed the effectiveness of collecting money policy with agents and customers.
+ Inventory days is also low at 35 days, thanks to effective sales in both Mobile Phones and Laptop & Tablets
+ Payable days tended to increase to reach 15 days, proving the position and prestige of a distributor like Digiworld with suppliers. This makes Digiworld’s inventory turnover faster but still ensures the necessary inventory for the next quarter when import contracts have been signed before and Digiworld’s partners have returned to work after the pandemic.
Profitability ratios: By the end of the 2nd quarter, the profitability ratios have been improved. Accordingly, Digiworld was managing cost efficiently, gross profit margin and net profit improved, reaching 6.7% and 1.9% compared to 6.2% and 1.8% of the same period in 2019.
– Capital structure: Thanks to the effective business performance, Digiworld has got the safest loan/equity structure (down to 0.51) in the 2nd quarter.
3Q20 PROSPECTS
– Laptops & Tablets: is expected to continue growing in the 3rd quarter of 2020 because this quarter is the back-to-school season. Moreover, DGW will record revenue from laptop distribution of Huawei and Apple Brand.
– Mobile phones: DGW is going to keep doing MES (Market Expansion Service) activities for Xiaomi and begin to record the revenue from distributing Apple’s Iphone in 3Q20.
– Office Equipment: With the trend of digital transformation and the control of the covid-19 pandemic, revenue from this segment will be on the process of recovery and development
– Consumer goods: When Covid – 19 is under control in the 3Q20 by VN Government, DGW makes distribution – contracts in FMCG and HC segments expected with products from Italy and Canada.
2Q ANALYSIS REPORTS UPDATE
DGW INFORMATION
RELATED NEWS
Digiworld: profit after tax increased by 55% in the 2nd quarter and cash on hand reached vnd 266 billion
To achieve the goal of sustainable development, Digiworld improves their efficiency in each action
Digiworld announced the strategic alliance with Apple
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