DIGIWORLD ACHIEVED NEARLY VND 4000 BILLION IN REVENUE, RECORDING 158% GROWTH IN NEW PRODUCTS IN THE FIRST QUARTER OF 2023
Digiworld Coporation - “DGW” announced its business results for the first quarter of 2023 with net revenue of VND 3960 billion, profit after tax of VND 79 billion. Compared to the same period in Quarter 1/2022, Digiworld recorded a decrease of 44% in revenue, a decrease of 63% in profit after tax.
According to the above results, Digiworld has completed 19.8% of the plan in terms of both revenue and profit of 2023: VND 20,000 billion in revenue, VND 400 billion in profit at the end of the first 3 months of this year. The business results of the last quarter 1 achieved by Digiworld are thanks to the contribution of core segments, specifically as follows:
Laptop & tablet segment: Revenue of this segment in Q1/2023 reached VND 1,094 billion, decrease 51% over the same period in Q1/2022. Compared to the previous Q4/2022, this result generates a growth record of -8%. The decline in revenue of the laptop and tablet segment is due to the fact that the purchasing power of these products by consumers peaked in Q4/2021, Q1/2022 and then gradually saturated, causing a decrease in demand. In addition, the bad changes of the macro economy in general make consumers tighten their spending on these items because they are inherently expensive.
Mobile phone segment: revenue of this segment in Q1/2023 reached VND 1,899 billion, down 51% over the same period and +7% over the previous period (Q4/2022). In general, this quarter, mobile phone products continued their growth deceleration trend and this decline was recorded after peaking in Q4/2021. Digiworld's problem with Apple's supply in previous quarters was resolved in Q1/2023. In the Q1/2023, Digiworld recorded an improvement in Apple's iPhone sales. At the end of Q1/2023, this segment achieved 21.7% of the year plan. However, similar to Laptops & Tablets, the tightening consumer trend with non-essential items continues, so Digiworld is still cautious in its business plan in the coming quarters in these items.
Office equipment and home appliance segment: reached VND 847 billion in revenue, up 5% over the same period. In which: office equipment segment reached 682 billion VND, down 8%, new home appliance segment reached 165 billion dong, strong growth of 158% over the same period. In general, with the weakening of the macro economy, the demand for non-essential products such as household appliances will decrease. Besides, the freezing of real estate projects - one of the main customer channels for home appliance products, made this segment not achieve the expected results. In this first quarter of 2023, Digiworld also recorded more than 100 billion profit from the subsidiary company Achison. At the end of Q1/2023, the office equipment and home appliances segment reached 17.8% and 18% of the 2023 plan, respectively.
Consumer goods segment: This segment grew 69% over the same period, reaching VND 120 billion in revenue. Compared to the previous quarter, Healthcare products did not have much difference. Genacol, Regenflex, Stent products have now entered a "sideway" trend after a good growth recorded on a low base last year, due to the fact that the ETC channel - the hospital and clinic channel was completely blocked because of the epidemic. Another result from this segment is that Digiworld has completed the project to build the necessary conditions (licenses, warehouse system) to serve the goal of becoming the top pharmaceutical distributor in Vietnam. Besides, Digiworld also has new products from AB InBev beer brand this quarter. These products have been recording positive sales in the first months of cooperation. Digiworld believes that the beer segment's revenue is still low compared to its actual potential. So in the coming time, Digiwolrd will promote distribution and market with the expectation of encroaching deeper into the beer market. By the end of Q1/2023, this segment achieved 12% of the year plan.
Quarter 1/2023 Unit: VND Billion
Laptops and tablets
Profit after tax
In 2023, Vietnam's economy in general had many recoveries after 2 years of being heavily affected by the Covid epidemic. However, non-essential segments such as ICT still recorded a decrease in demand because of the macroeconomic crisis in the world. Therefore, in the first quarter of this year, Digiworld's main product lines did not record growth as in previous quarters. Given the constant fluctuations of the macro economy, Digiworld predicts that it will not be until the last quarters of 2023 that the market can recover, but the extent of the recovery may not be significant.
Facing the decline in demand of the main ICT segment, Digiworld has prepared many contingency plans. This plan to maintain this sustainable development is not strange, this is also the long-term development strategy of Digiworld that has been steadfast for many years: continuous development, expanding both horizontally and vertically. The company uses the advantage of MES to find and accompany new brands in many categories such as the home appliances with the Westinghouse brand from the US, the FMCG with the largest beverage brand Lotte Chilsung in Korea. Before that, at the end of 2022, Digiworld also closed a "deal" with foreign beer giant AB InBev with a series of famous brands such as: Budweiser, Corona, Hoegaarden, ... In the first quarter of 2023, these beer brands also contributed positively to Digiworld's revenue.
In the coming quarters, the market may still record a decline in demand as consumers tighten spending on non-essential technology goods. However, Digiworld believes that there will always be new opportunities to open up because although it is not weak, ICT is always and still very necessary. In addition, Digiworld hopes that new product lines will contribute more actively when they are properly invested in distribution, marketing and after-sales. With the spirit of "Fire proves gold ", Digiworld team will confidently overcome challenges thanks to solid foundations that have been invested and consolidated over the past 26 years to seize every opportunity and do good business.