Mobile World Investment Corporation has approved a plan to pour another VND1 trillion (US$43 million) into its grocery store chain subsidiary Bach Hoa Xanh to raise the company’s charter capital.

The decision is in line with the capital hike plan for the chain as approved at the company’s annual shareholders’ meeting in 2018.

The capital increase, expected in the first quarter, will facilitate the company’s development and expansion plan.

Mobile World Investment has continuously pumped money into Bach Hoa Xanh since last year to the tune of VND750 billion in April and VND1.25 trillion in November. With another VND1 trillion, the company will have poured a total of VND3 trillion into the grocery store chain.

In a recent meeting with investors, the leader of Mobile World Investment said Bach Hoa Xanh’s total revenue was not large (accounting for just 4 per cent of Mobile World Investment’s total revenue) but the food and consumer goods industry is expected to achieve a high growth rate.

Bach Hoa Xanh, incorporated by Mobile World Investment in 2010, recorded a total revenue of VND628 billion ($27 million) in January, up 214 per cent against the same period last year.

It has more than 420 stores in 10 provinces, mainly in HCM City and the west and southeast regions. The grocery chain plans to review its store and will close the ones that do not meet expected results by the end of March.

Its strategy is to focus on broad coverage of products and to be similar to traditional markets but with better services, targeting low and medium-income earners.

Mobile World Investment plans to promote the Bach Hoa Xanh brand, expecting to lift the number of grocery stores to 700 by the end of 2019.

Mobile World Investment recorded consolidated revenue of VND10.36 trillion and net profit of VND452 billion last month, up 32 per cent in revenue and 51 per cent in profit compared to January 2018.

Ending 2018, the company earned nearly VND86.52 trillion in revenue, slightly higher than its yearly target of VND86.39, while profit after tax reached VND2.88 trillion, up 11 per cent over the yearly goal.

Shares of the company, coded MWG on the Ho Chi Minh Stock Exchange, have gained 8 per cent this month to trade around VND90,000 ($3.86) per share. — VNS