Bach Hoa Xanh speaks out about the bean sprout scandal, how is business doing after the incident?

According to information from the Economic Police Department of Dak Lak Province Police, the unit discovered and seized 20,357 kg of bean sprouts soaked in banned substances by a group of people for illegal profit.

It is worth mentioning that among them, there is a production facility, Lam Dao Trading Company Limited, that also signed a contract to sell to Bach Hoa Xanh from 350 - 400kg of bean sprouts/day.

Regarding the bean sprouts products in Dak Lak of Lam Dao Supplier sold at Bach Hoa Xanh, responding to this issue, Mobile World Investment Joint Stock Company (TGDĐ - MWG) - the parent company of Bach Hoa Xanh said that as soon as the information was received, Bach Hoa Xanh immediately recalled and stopped selling all goods of this supplier as well as re-tested all bean sprouts products being supplied to the chain.

According to Bach Hoa Xanh, Lam Dao Supplier only supplies Dak Lak region with a rate of 2% of the total bean sprout output.

Bach Hoa Xanh always emphasizes product hygiene and safety. Products imported into the chain must provide full legal documents as required: Business license, food hygiene and safety certificate, QC criteria declaration test certificate, related licenses... according to State agency regulations.

Bach Hoa Xanh is working closely with authorities to clarify the incident.

How does Bach Hoa Xanh do business?

According to MWG's recently announced business results report, MWG's total revenue reached VND122,298 billion, up 13% over the same period in 2023 and completing 98% of the yearly plan (VND125,000 billion). In November alone, the Group's revenue reached approximately VND10,945 billion, up 10% over the same period last year.

In the revenue structure, the Mobile World chain (including Topzone) and Dien May Xanh in the 11 months of 2024 had a total revenue of VND 81,700 billion, an increase of nearly 7% over the same period. In November alone, the revenue of Mobile World (including Topzone) and Dien May Xanh was VND 7,200 billion. November revenue increased by 10% over the same period and decreased by 9% compared to the previous month.

Monthly and cumulative revenue increased year-on-year from most product lines, thanks to a focus on strategic products, after-sales programs, and financial solutions to provide buyers with more shopping options.

The decrease compared to October 2024 was mainly due to the cooling of iPhone after 2 months of launch and the peak sales season of laptops. The electronics industry still maintained the same revenue level as the previous month.

Online revenue in the first 11 months of the year reached VND8,200 billion, accounting for 10% of total revenue of both chains.

For the Bach Hoa Xanh chain, revenue in the first 11 months of 2024 reached nearly 37,400 billion VND, accounting for 30.6% of TGDĐ's total revenue. This figure increased by 32% over the same period thanks to contributions from the fresh food and FMCG (fast-moving consumer goods) industries. In November alone, revenue reached more than 3,500 billion VND. Average revenue in the month is about more than 2 billion VND/store.

Sharing at the Analyst Meeting, Mr. Pham Van Trong - General Director of Bach Hoa Xanh Trading Joint Stock Company predicted that Bach Hoa Xanh chain in the last months of 2024 will still have the potential to grow store revenue but not as strong as at the beginning of the year. The reason is that many stores have reached the service threshold corresponding to the area according to the current model (about 150 - 200 m2).

Currently, Bach Hoa Xanh has 1,735 stores. At the end of November, the company opened more stores in many areas, but the specific number of stores has not been announced by this company.

Bach Hoa Xanh was established in 2025. According to Mr. Nguyen Duc Tai - Chairman of MWG's Board of Directors, Bach Hoa Xanh is still a young retail chain so it definitely focuses on expansion. He said that now is the right time for Bach Hoa Xanh to implement an expansion strategy and increase sales because the company now has resources back after a difficult period.

In particular, after many years of development, this chain is planning to "go North". According to Mr. Tai, Bach Hoa Xanh has no intention of making a big move to the North and is considering opening a trial store in a province in this region, but this has not been decided yet. "The Northern market is very unique and different", the owner of Mobile World assessed.

Regarding the 2025 plan, in a meeting with investors held last November, Mr. Pham Van Trong, General Director of Bach Hoa Xanh said, "We have found an effective new opening formula, including issues of finance, premises, human resources, basic investment... In 2025, Bach Hoa Xanh plans to open 100-200 stores. However, the official plan must wait for the board of directors to finalize and hand it over."

Due to the priority on revenue targets, the gross profit of this chain may not increase as much as the sales growth. "The future depends on the goals set by the board of directors. If they want market share, revenue will increase quickly, but profit will increase slowly," Mr. Trong emphasized.

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