DIGIWORLD RECORDS 6065 BILLION REVENUE, STRONG GROWTH IN PROFIT AND IMPRESSIVE RESULTS OF NEW CATEGORIES IN QUARTER 3 OF 2022

Thus, as of the end of the first 9 months of 2022, Digiworld achieved total revenue and profit: VND 17,985 and VND 528 billion, respectively. Compared to the set annual plan – 26.3 trillion revenue and 800 billion profit, Digiworld has currently completed 68% and 66%, respectively. The impressive growth recorded through Digiworld's Q3 revenue and profit was driven by the strong performance of the following core categories:

  • Laptops & tablets: this is the largest contributor to total revenue in Q3/2022 with a recorded figure of VND 2,457 billion. This Q3’s laptop and tablet category grew by 32% compared to the same period in 2021 and was more impressive with a growth of 117% compared to the previous quarter – Q2/2022. In terms of the dynamics of the impressive growth of this segment, the back-to-school season is one of the driving points, helping sales of the laptop & tablet segment return to the peak of Q4/2021 and Q1/2022. At the end of Q3, this segment recorded 60% of the annual plan.
  • Mobile phone: this segment in Q3 also recorded impressive revenue: VND 2,399 billion and a strong growth over the same period in 2021 of 74%. The growth rate of this segment recorded in Q3 is attributed to the low background of 2021 - Q3/2021 is the peak time of social distancing, mobile phone products suffered a significant decline in demand when stores closed, plus phones are not an ideal choice for studying and working from home. Despite the low background, in recent years, the mobile phone industry has also entered a "saturated" period, so the growth recorded by Digiworld is still considered very impressive. In terms of details of companies in this segment, prominent companies such as Apple and Xiaomi continue to record positive numbers. Specifically, Xiaomi's market share in Q3/2022 held the third position at nearly 14-16%, up nearly 1% over the same period, while Apple's market share reached nearly 13-14%, up 6.5% over the same period. It is expected that in the year-end period, Xiaomi and Apple will launch new product lines such as Mi13, RedmiUltra K50, iPhone14 that can help Digiworld improve revenue. By the end of Q3/2022, this segment reached 73% of the plan.
  • Office equipment and home appliances: this segment recorded VND 1,113 billion in revenue – a strong growth of 138% over the same period. In which, office equipment products brought in VND 908 billion and new home appliances also contributed positively with VND 205 billion. Looking at details in this category in Q3, the 2 product lines that contribute significantly to revenue are PC and TV. For Xiaomi TV alone, Digiworld recorded VND 145 billion, a rapid increase of 112% and it is expected that in the near future, Q4/2022 when the World Cup season comes, TV products will continue to grow stronger.
  • As for Home Appliances, this is a new segment and Digiworld is still in the process of building and improving the system of warehousing, distribution, research process, and marketing to officially be ready for strong business in the future (similar to laptop brands, or Xiaomi – it takes time for Digiworld to help the product penetrate and develop in the common market). At the end of Q3, this segment achieved 77% of the annual plan.
  • Consumer goods: at the end of Q3, this segment recorded VND 96 billion in revenue – negative growth of 22% over the same period. The reason for this negative growth is that Q3/2021 was the time when Digiworld recorded record sales of this segment from anti-pandemic goods – temporary business products instead of the main pillars such as injections and FMCGs. Compared to the previous quarter, Healthcare products are not much different, Genacol, Regenflex, Stent products ... etc. after good growth has now entered a "sideway" trend. In 2022, Digiworld is developing the necessary conditions (licenses, warehouse system) to serve the goal of becoming the top pharmaceutical distributor in Vietnam in the context when health is a top concern and Vietnam accepts to live with the pandemic in the new normal. At the end of Q3/2022, this segment reached 57% of the annual plan.

Q3/2022 Unit: Billion VND

Q3/21

Q3/22

YoY

9M2021

9M2022

YoY

Plan

%Plan

Laptops and tablets

1,863

2,457

32%

4,559

5,839

28%

9,740

60%

Mobile phones

1,381

2,399

74%

6,360

8,983

41%

12,330

73%

Office Equipment

467

908

138%

1,848

2,903

57%

3,770

77%

Home appliances

-

205

-

-

-

-

-

-

Consumer goods

123

96

(22%)

283

260

(8%)

460

57%

Net revenue

3,825

6,065

59%

13,050

17,985

38%

26,300

68%

Profit after tax

107

180

68%

330

528

60%

800

66%

In general, compared to the same period, in this Q3/2022, Digiworld recorded impressive growth thanks to shopping occasions such as back-to-school season, shopping before the World Cup season as well as booming demand for Apple products such as iPhone 14 series. These dynamics promote 2 categories of mobile phone and laptop & tablet to grow strongly on a low background due to many impacts from the pandemic of 2021. In the first 9 months of 2022, Digiworld has earned VND 17,985 billion in revenue, up 38% over the same period in 2021 as well as completed 68% of the annual plan of VND 26,300 billion. In addition to revenue, Q3's profit after tax is also a bright spot when it grows strongly by 68%, total 9 months VND 528 billion – up to 60% over the same period in 2021.

The positive results that Digiworld has achieved are due in large part to the sustainable values that the company has built from its product strategies as well as the value from Digiworld's core and separate service chain – Market Expansion Services (MES) over the years. Typically, Digiworld's strategies are key ICT segment results, contributing VND 5,969 billion in revenue. Besides, it is also indispensable for sweet fruits from new brands added on the journey of loving challenges, diversifying Digiworld's merchandise categories and products such as home appliances from Whirlpool, Joyoung or TVs from Xiaomi. In the last months of 2022, following the spirit of loving challenges to always make breakthroughs, Digiworld is confident to grasp market needs and trends and promises to bring impressive results.