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Digiworld exceeds 2017 after-tax profit target by 42%

Released at: 19:25, 01/02/2018

Digiworld exceeds 2017 after-tax profit target by 42%

Mi Store in Crescent Mall. Photo: DGW

Electronics distributor strengthens business plan with new strategies.

by Khanh Chi

Electronics and healthcare distributor the Digiworld Corporation (DGW) recently released its consolidated financial statement for the fourth quarter of 2017.

Revenue reached VND3.82 trillion ($168.5 million) and after-tax profit VND78.34 billion ($3.5 million), exceeding the annual plan by 42 per cent. It actually matched the annual after-tax profit plan in the third quarter, reaching VND55 billion ($2.4 million).

Sales increased 11.13 per cent year-on-year in the fourth quarter and profit a sharp 106 per cent, due to its gross profit margin improving from 6.9 per cent to 7.97 per cent after it offered full market development services (MES) packages to firms and new product lines that proved more profitable than traditional lines.

In computers and tablets, though overall market growth was not high, Digiworld maintained its growth by exploiting niche markets, such as distributing Fujistu computers targeting businesspeople and LG fashion computers for young people or South Korean businesses.

The mobile phone business recorded lower growth as the company restructured its product categories and abandoned the distribution of products not contributing much in the way of value.

In office equipment, growth was good and stable as more brands had different product categories.

The new business of consumer goods was implemented later than planned but made a contribution from the third quarter onwards, so needs more time to complete distribution channels and product diversity.

“2018 is a milestone for Digiworld in starting a new itinerary after 20 years of operations and development,” said Mr. Mr. Doan Hong Viet, CEO of Digiworld. The company has set a target for revenue and profit of VND4.7 trillion ($20.7 million) and VND101 billion ($4.5 million), respectively, this year, up 23.03 per cent and 28.92 per cent.

“With positive business results in 2017, Digiworld can successfully achieve its ambitions through its experience in providing market analysis and development services and the ability to respond quickly to potential growth in product categories,” he went on. “Higher sales of consumer goods will begin to be seen in all quarters of 2018 and contribute VND200 billion ($8.82 million).”

In recent news, the company has partnered with China’s Xiaomi to open the first Mi Store in Ho Chi Minh City’s District 7.

The Digiworld Venture Company, a subsidiary of the Digiworld Corporation, announced in late October it had completed a purchase of 50.3 per cent in the CL Company, a fast-moving consumer goods (FMCG) concern in Vietnam.

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