Mobile phones contribute to electronics distributor's record growth in Q1.
Electronics and FMCG distributor Digiworld Corporation (DGW) has recently approved the target of around $207 million in net revenue this year, an increase of 23 per cent compared to the previous year.
Gross profits doubled to nearly $880,000 making up 19 per cent of the annual plan. Distribution of laptops, mobile phones, and office devices is expected to make up 96 per cent of this goal.
The company sets a target of 25 per cent CARG every year. It reported stunning results in the first quarter with nearly $56 million in net revenue, rising 66 per cent year-on-year. This revenue has been the highest since the company first listed in 2015. Consolidated after tax profit reached $857,000, an increase of 127 per cent year-on-year.
Most of Digiworld's business sectors have recorded positive results. A hike in the mobile phone sector's revenue came from the brands Xiaomi and Sharp. In office equipment, growth was good and stable as more brands had different product categories.
The consumer goods sector recorded growth from the contribution of the newly acquired FMCG Company CL Ltd. and revenue from Kingsmen products from the third quarter last year in the healthcare sector.
'Digiworld is the exclusive distributor of the washing liquid, fabric softener, and toothpaste of Japan's Lion Corporation. We only started in the middle of 2017 but the growth is astounding,' Digiworld's Chairman Mr. Doan Hong Viet said.
This company confirmed that its FMCG business segment will bring $8.8 million in revenue after one year, four times higher than last year due to good market development, research and development, the expansion of distribution channels, and marketing campaigns. However, Mr. Viet affirmed that this figure would change drastically in the middle and for the long-term due to the surging growth of the FMCG sector in recent years.
Digiworld also broke into the pharmaceutical sector last year and confirmed the great market potential as demand for healthcare among Vietnamese consumers is on the increase. The sector is expected to grow by 100 per cent in revenue and is expected to hit $44 million within the next two years.
Digiworld's Chairman also identified that pharmaceutical distribution is very different from the firm's traditional sector, electronic devices. The company will strengthen connectivity with pharmacies to create and expand its distribution system and launch new healthcare products.
In order to implement this plan, Digiworld's management board plans to raise charter capital by issuing six million individual shares.