MWG - Profitability track behind our forecasts - Earnings Flash

- 9M 2023: Net revenue declined 16% YoY to VND86.9tn (USD3.5bn) and NPAT-MI plunged 98% YoY to VND78bn (USD3mn), fulfilling 73% and 8% of our respective full-year forecasts. While revenue was in line with our expectations, the NPAT-MI result was behind our forecast mainly due to the weaker-than-expected operating margins in Q3 2023. As such, we foresee a downside risk to our 2023F earnings forecasts, pending a more extensive review.

- Q3 2023: MWG’s net revenue increased 3% QoQ to VND30.3tn (USD1.2bn). NPAT-MI increased to VND39bn (USD2mn) in Q3 from VND17bn (USD1mn) in Q2, which tracked behind our expectations mainly due to slower-than-expected profitability improvements in the ICT and grocery businesses.

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