At the same time, it recorded an increase of VND105 billion in profit after tax before distribution to minority shareholders. This is the first quarter the company has reported positive profit after tax since 2023.
Foundation for growth from Vietnam meat market
The pork and chicken market, worth more than 15 billion USD, is the largest segment in the F&B industry. With a population of nearly 100 million people, the average income is constantly improving, causing the demand for clean meat with traceable origin in Vietnam to increase.
Currently, domestic meat production only meets 95% of consumption. Therefore, the livestock sector has great potential and is attracting strong investment from both foreign and domestic sources. Vietnam's meat industry is poised for significant growth in meeting the needs of an increasingly large population.
Despite its great potential, the Vietnamese meat market is not standardized as most pork products on the market are unbranded. Meanwhile, consumers are increasingly paying attention to products with traceable origins.
This creates conditions for Masan MEATLife Joint Stock Company (MML) - a member company of Masan Group and also one of the leading enterprises in Vietnam in the branded meat business, to have great potential for growth and an opportunity to set new standards in the consumption of high-quality, safe meat at reasonable prices for Vietnamese consumers.
Starting as a leading animal feed company in Vietnam, MML has completed its transformation into a branded meat business based on a consumer goods model. Since 2023, with a strategy focusing on the processed meat industry, in addition to MEATDeli, MML has owned two more brands, “Heo Cao Boi” and "Ponnie” - with processed meat products that have established a certain position in the market.
Masan MEATLife records third consecutive quarter of positive profit
In Q3/2024, MML recorded an increase of VND43 billion in EBIT compared to the same period last year and an increase of VND105 billion in profit after tax before distribution to minority shareholders (NPAT Pre-MI) compared to the same period in Q3/2024. This is the third consecutive quarter that MML has reported positive operating profit (EBIT) and the first quarter with positive NPAT Pre-MI (VND20 billion) since 2023.
This positive result was driven by increased processed meat sales, while also benefiting from higher market prices for chicken and pork.
In Q3/2024, meat revenue including pork, chicken and processed meat increased by 13.6% YoY, while farm revenue decreased by 28.2% YoY in Q3/2024 as MML implemented a strategy to restructure the farm chicken segment and focus more on the end-to-end value chain. As a result, MML's revenue increased slightly by 1.7% YoY to VND1,936 billion in Q3/2024.
Thanks to the integration into WIN Membership - a customer membership program in cooperation with WinCommerce, MEATDeli cooled meat has reached customers shopping at more than 3,700 WinMart/WinMart+/WIN supermarket chain points of sale. From there, it brings the opportunity to use high-quality meat products at reasonable prices to consumers, while helping sales grow impressively.
Increased sales and a solid position have turned MEATDeli into a “leading product” - a product that can attract consumer traffic to the store. MML's competitive pricing strategy, including an exclusive price program for WIN members, helps narrow the price gap between MEATDeli products and meat at traditional markets, thereby increasing output and capacity utilization for processing plants.
Appreciating the quality of MML's MEATDeli chilled meat, more and more consumers are interested in other products of the same brand. A series of quality processed meat products such as: ham, sausage, floss, dried chicken, pork skin rolls... are positively received by consumers. In particular, two strong brands, Ponnie and Heo Cao Boi, have achieved about 50% market share in the sterilized sausage product market.
The meat value chain in Vietnam has huge growth potential, but will require companies to develop markets and lead change. From 2023, Masan MEATLife has focused on expanding its product portfolio by launching more processed meat products from pork and chicken. Processed meat will be a key factor to drive growth, not only in revenue but also in operating profit margin.
In 2024, MML targets revenue growth of around VND7,100 - 7,800 billion, an increase of 2 - 12% compared to 2023 thanks to focusing on investing in the business of branded pork, chicken and processed meat. In the fourth quarter of 2024, MML will invest more in long-term profits from the processed meat segment to achieve sustainable profits.
