Digiworld sets sight on ambitious $443.5 million revenue target

Digiworld set a revenue target of $443.5 million for 2020. Source: Digiworld

Digiworld JSC (Digiworld, code DGW) continues to set a double-digit growth target for 2020. Digiworld is gunning for revenue growth of 20 per cent, reaching VND10.2 trillion ($443.5 million). Meanwhile, with the expected profit margin improving (by 1 percentage point), the company aims to increase after-tax profit by 25 per cent, from VND161 billion ($7 million) to VND201 billion ($8.74 million).

This business plan will be submitted to the shareholders for approval at the annual meeting held on March 31. The list of shareholders attending the meeting will be closed on February 27.

In 2019, the company's revenue and after-tax profit both exceeded the plan by 20 per cent. Specifically, the sales of Digiworld reached VND8.6 trillion ($373.9 million), up 43 per cent from the previous year. The company's spending on sales activities and sales in 2019 increased by 83 per cent, from VND134 billion ($5.83 million) in 2018 to VND245 billion ($10.65 million) in 2019.

This is the third year the company has set foot in the two new categories of FMCG and healthcare, through the distribution of consumer goods and supply of functional foods, besides its traditional strength of ICT products, including laptops and tablets, mobile phones, and office equipment.

Starting with the distribution of Kingsmen healthcare products (in August 2017) and acquiring 50.3 per cent of CL Co., Ltd., a business specialising in distributing high-end fast-moving Japanese consumer products, such as Kodomo toothpaste, Zact Lion whitening toothpaste, Systema toothbrush, Essense laundry detergent, Bio Zip washing powder, or Bubbi King dishwashing liquid in the third quarter of 2017.

Subsequently, Digiworld had several co-operation programmes to develop consumer goods, with the most notable activity being the co-operation with Nestlé Group in early 2019. Accordingly, Digiworld is the distributor of Nestlé's medical nutrition product.