QUARTER 2/2024, DIGIWORLD’S REVENUE REACHES 5,008 BILLION VND, ALL INDUSTRIES ACHIEVE DOUBLE-DIGIT GROWTH IN THE FIRST HALF OF 2024

Digiworld Corporation ("DGW") has announced its Q2/2024 financial results, reporting a revenue of 5,008 billion VND, reflecting a 9% growth, and a net profit of 89 billion VND, which is a 7% increase compared to Q2/2023.

For the first half of the year, Digiworld achieved a total revenue of 9,993 billion VND and a profit of 181 billion VND, both showing double-digit growth compared to the same period last year, with increases of 17% and 12%, respectively. In terms of the 2024 business plan, the company has completed 43% of its revenue target and 37% of its profit target – with the business plan for 2024 set at 23,000 billion VND in revenue and 490 billion VND in profit.

The business results reported by Digiworld for the 2^nd quarter were supported by the company's core industries, with specific data as follows:

• - Laptops & Tablets: In Q2/2024, revenue reached 1,568 billion VND, marking a 17% increase compared to the same period last year and a 38% growth compared to the previous quarter. This growth is attributed to two main factors, despite the general industry being considered saturated after the Covid-19 pandemic. First, technology products have a replacement cycle of approximately 3 years. Second, the launch of numerous new AI-integrated laptops in Q2 has driven up the average selling price of these products. By the end of Q2/2024, this sector achieved 2,707 billion VND in revenue, completing 41% of the annual target.

• - Mobile Phones: Revenue for this sector reached 2,221 billion VND, reflecting a 1% growth compared to Q2/2023. For the first six months of 2024, this industry achieved 4,663 billion VND in revenue, which is a 14% increase compared to the same period last year and has completed 54% of the annual target. However, similar to laptops & tablets, the context of tightening consumer spending on non-essential items continues. As a result, the company remains cautious in its business planning for the upcoming quarters regarding these products.

• - Office Equipment: Revenue for this industry is 858 billion VND, representing an 18% increase compared to the same period last year. This growth is driven by products such as smartwatches, printers, server workstations, storage devices, and computer components. After the first six months of 2024, this sector achieved 1,868 billion VND in revenue, completing 34% of the annual target.

• - Home Appliances: Revenue for Q2/2024 reached 199 billion VND, marking a 20% increase compared to the same period last year. The strong growth in this sector for the quarter was primarily driven by contributions from air purifiers and robotic vacuum cleaners from Xiaomi. However, overall, the weakening macroeconomic conditions have led to a significant decrease in demand for non-essential products such as home appliances. Additionally, the freeze on real estate projects (a major customer channel for home appliances) has caused this industry of Digiworld’s business to fall short of expectations. By the end of Q2/2024, this sector achieved 39% of the annual target.

• - Consumer Goods: This sector reported a 5% decrease compared to the same period last year, with revenue reaching 162 billion VND. Compared to previous quarters, there has been little change in the Healthcare product line, and revenue for these products has remained stable across the quarters. Despite a general market decline, revenue from AB InBev beer products in the first half of 2024 saw a strong growth of 34% compared to the same period last year. By the end of the first six months of 2024, this sector achieved 346 billion VND in revenue, marking a 19% increase compared to the first half of 2023.

Quarter 2/2024 (Unit: billion dong)

Q2/2024 marks the second consecutive quarter of growth for Digiworld after a prolonged market downturn due to the economic crisis. This is a positive sign and confirms the effectiveness of Digiworld’s business operations and strategy. The ICT market is gradually becoming saturated, consumer demand is still impacted by economic difficulties, and Q2 is typically a low season each year. To achieve overall growth and growth across most industries, Digiworld has flexibly adjusted its receivables policy to support distribution channels such as small retailers. Additionally, the positive business results are partly due to the upgraded ERP system that Digiworld implemented at the beginning of 2024, which has helped the company manage inventory more effectively. However, to incentivize purchases from dealers, Digiworld’s sales expenses in Q2 also increased. Furthermore, the consolidation of Vietmoney and B2X, along with investments in infrastructure for the headquarters, led to a significant rise in administrative expenses for Q2. The expansion of business and investment in infrastructure are essential and important elements of Digiworld's sustainable development strategy, helping the company reduce dependence on the industry, increase employee satisfaction, and enhance work performance.

In the last two quarters of the year, there will be several consumer purchasing drivers, such as the back-to-school season and the launch of new technology products from brands like Xiaomi and Apple, including iPhones and iPads. Additionally, the end of the year will see a surge in shopping activity due to major holidays, especially with Lunar New Year approaching earlier than usual. This presents an opportunity for Digiworld, not only in the ICT industry but also in consumer goods, an industry that has recently seen development and strong growth for the company. Digiworld has already started stocking up for these consumption periods and hopes that the novelty of new technology products, combined with a positive rebound in consumer purchasing power as the market conditions improve, will lead to impressive growth figures for the company.