Digiworld Joint Stock Company, an authorized reseller of Apple and Xiaomi, has cut its profit target for this year by almost half to VND400 billion (US$17 million).
In a report sent to shareholders ahead of the upcoming annual general meeting, the company said the revenue target is lower by 9% at VND20,000 billion.
It had announced late February that the profit target was VND787 billion ($33.5 million).
The report said the business plan for 2023 has been amended due to the “decline in the economy as well as consumer demand.”
It would improve its distribution channels and facilities and develop new product categories to improve market share, revenues and profits.
A declining business outlook after two years of high growth is also the overall situation in the retail industry this year.
Electronics store chain FPT Retail plans to seek shareholder approval to reduce its pre-tax profit by more than half to VND240 billion. In the last two years they had been VND554 billion (2021) and VND485 billion (2022).
It cited difficulties faced by its consumer electronics chain FPT Shop, saying it could be more severely affected by adverse factors that began in the fourth quarter of 2022 such as a sharp decrease in the demand for ICT products, steady decline in the installment credit market and inflation.
The firm has not said when it expects the market to recover. Last year FPT Shop contributed nearly 70% of FPT Retail’s total revenues of more than VND30 trillion.
While not planning to reduce its profit target like FPT Retail, electronics retailer Mobile World targets just a 1% increase in revenues to VND135 trillion, its lowest growth rate since 2009.
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