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At a recent investor meeting for the first quarter of 2026, Mobile World Investment Corporation (MWG) outlined key updates to the IPO roadmap for its subsidiary Bach Hoa Xanh. MWG said the target is to complete Bach Hoa Xanh’s IPO within three years, supported by continued profitability and progress toward eliminating accumulated losses.
MWG leadership said Bach Hoa Xanh has already been profitable for 1–2 years and expects to maintain profitability throughout 2026 to achieve three consecutive years. A further objective is to erase accumulated losses. For 2026, MWG stated that Bach Hoa Xanh’s profit target is at least double the 2025 level.
MWG also noted that large cost optimization initiatives have been completed, and the next phase will focus on optimizing smaller costs. It added that when revenue grows, fixed costs are nearly unchanged, leaving substantial room for profitability improvement through operating leverage.
In Q1, Bach Hoa Xanh reported almost VND 400 billion in profit, compared with about VND 10 billion in the same period of 2025. MWG attributed the improvement to changes in Tet sales that reduced losses, along with logistics optimization and lower back-office costs.
“When revenue grows, fixed costs are nearly unchanged, so operating leverage drives a substantial profitability improvement,” MWG leadership said.
MWG said Bach Hoa Xanh’s strategy is built on four pillars: (1) opening about 1,000 new stores; (2) enhancing customer experience; (3) investing to improve product quality; and (4) controlling costs and operating efficiently.
During the growth phase, MWG said Bach Hoa Xanh needs to push revenue to capture market share. The company does not focus on a fixed target profit margin; instead, it expects that higher revenue will translate into higher absolute profits to meet the IPO objective.
MWG reported that Bach Hoa Xanh is expanding vigorously, particularly in the North. Since the start of the year, the chain has opened 430 additional stores, bringing the system to 2,989 stores. It also opened its first store in Hanoi. MWG said the North rollout over the past six months requires more time to evaluate, but demand in the North is considered higher than in the Central region, and the shift from traditional markets to modern channels is accelerating.
MWG added that smaller and newer stores require about 20% lower investment costs than earlier outlets. With the current smaller scale, MWG said the goal of VND 5 billion per month is challenging to achieve.
MWG said inflation affects purchasing power, but Bach Hoa Xanh benefits from price stability and well-controlled product quality. It also reported positive revenue signals: in April and May, average revenue per existing store improved.
April revenue rose about 10% compared with the quarterly average.
May showed more positive signals.
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