In Q3/2024, Masan's net revenue reached 21,487 billion VND, up 6.6% compared to 20,155 billion VND in Q3/2023 thanks to sustainable growth from retail consumer businesses. At the end of the first 9 months of 2024, Masan recorded 60,476 billion VND in net revenue, equivalent to 220 billion VND per day. The company reported that it had completed 130% of the base-case profit after tax (NPAT) plan and was looking towards a positive scenario in Q4/2024.
Masan Consumer maintains double-digit growth momentum, will IPO in 2025
Masan's branded consumer goods segment, Masan Consumer (Stock code: MCH), continued to record positive results in the third quarter of this year. Masan Consumer's revenue in the third quarter of 2024 increased by 10.4% year-on-year to 7,987 billion VND. This positive figure was contributed by the premiumization strategy implemented in the Convenience Food and Seasonings segments, which achieved growth of 11% and 6.7% year-on-year, respectively; and innovation activities in the Beverages and Home & Personal Care segments, which achieved growth of 18.8% and 12.4% year-on-year, respectively. The business continued to maintain a high gross profit margin of 46.8% in the third quarter of 2024.
Masan Consumer's IPO process has also recently seen positive developments. On October 2, Masan Consumer announced its plan to transfer MCH shares from UPCoM to HoSE. In addition, the company also announced its plan to offer 326.8 million shares to existing shareholders at a ratio of 100:45.1 (Shareholders owning 1,000 shares have the right to buy 451 new shares at 10,000 VND/share). This could be a move to prepare for the listing of MCH shares on the Ho Chi Minh City Stock Exchange (HoSE). According to information from the company, Masan aims to complete the listing of MCH shares on HoSE in 2025.
WinCommerce achieved positive profit after tax for the whole quarter
Masan's consumer retail business achieved a "double" positive profit after tax. For Masan's retail segment, WinCommerce (WCM) recorded a 9.1% year-on-year revenue growth in Q3/2024, reaching 8,603 billion VND across the entire network, mainly contributed by the new store models WIN (serving urban shoppers) and WinMart+ Rural (serving rural shoppers). WCM's net profit reached a positive figure of 20 billion VND in Q3/2024, the first time since the COVID period. This is a clear sign of a sustainable profit path in the coming time.
As of September 2024, WCM operates 3,733 WCM stores, with a net opening of 60 new stores since Q2/2024. New store openings have been ramping up again. WinMart supermarkets have achieved positive operating profit (EBIT) while revenue growth has been flat, mainly due to improved loss ratios.
According to the report, WCM's strategic focus for the last quarter of 2024 is to continue to achieve positive net profit, accelerate LFL growth, and accelerate store openings to reach approximately 100 new stores per quarter. WCM will continue to strengthen its position in rural areas with its proven WinMart+ Rural model.
Masan MEATLife recorded positive profits for 3 consecutive quarters
In Q2/2024, Masan’s branded meat segment, Masan MEATLife (MML), recorded a year-on-year increase in operating profit (EBIT) of 43 billion VND and a year-on-year increase of VND105 billion for NPAT before minority interest distribution (NPAT Pre-MI) in Q3/2024. This is the third consecutive quarter that MML has reported positive EBIT and the first quarter with positive NPAT Pre-MI (20 billion VND) since 2023. This positive result was driven by increased sales of processed meat, while benefiting from higher market prices for chicken and pork.
MML continues its mission to revolutionize Vietnam’s growing processed meat market with delicious, healthy, high-quality products, under its two “Love brands” Ponnie and Heo Cao Boi. These two brands have achieved approximately 50% market share in the sterilized sausage product market.
The restructuring of the farm segment is an effort by the company to reduce risks in the volatile farm market, while maintaining the segment at an appropriate scale to ensure uninterrupted supply of raw materials for domestic meat production needs.
Masan's tea and coffee chain, Phuc Long Heritage (PLH), grew 12.8% year-on-year to 425 billion VND in Q3/2024, mainly due to the contribution from 21 new stores outside WCM opened in the same quarter. PLH currently operates 174 stores nationwide.
“I believe that Masan will be close to achieving its post-tax profit target of 2 trillion VND in the positive scenario. We have been focusing on integrating our entire retail consumer platform, aiming for double-digit consolidated revenue and profit growth by 2025,” said Dr. Nguyen Dang Quang, Chairman of Masan Group.
The positive business results of the retail consumer business clearly reflect the strong recovery of Masan as well as the consumer market in the first 9 months of 2024. Looking forward to the last quarter of 2024, according to the management, Masan is confident that it will get closer to the 2024 profit plan under a positive scenario.
