Masan's net revenue reached VND20,155 billion, of which 85% came from the consumer business segment in the third quarter.
According to the newly released business report, Masan's net revenue in the third quarter reached VND20,155 billion, up 3.2% over the same period in 2022, of which the consumer business segment was VND17,149 billion. Gross profit in the third quarter reached VND5,940 billion, of which 97.5% was also in the consumer segment.
Masan Group's net revenue for the first nine months of this year reached VND57,470 billion, up 3.5% year-on-year. Consolidated cash balance, including cash and cash equivalents, was VND14,258 billion at the end of the third quarter.
Consumers refer to the preferential price list for Win members. Photo: Masan
The CrownX (a merger of Masan Consumer Holdings - MCH and WinCommerce - WCM) had revenue of VND14,869 billion in the third quarter and VND41,704 billion in the first 9 months, up 1.2% and 2.4% year-on-year, respectively.
WinCommerce is close to breaking even on EBIT for the first time since Covid-19, thanks to increased revenue in both the quarter and the first nine months of this year. A significant reason is that this retail chain is constantly opening new stores. As of the end of September, the WinCommerce chain had 3,586 points of sale nationwide.
LFL mini-supermarket group - accounting for 70% of all mini-supermarkets, recorded a 2.2% increase in after-tax profit (the second consecutive quarter of positive growth). According to Masan, this is an important signal that gives the management confidence in the break-even point of after-tax profit of the entire network next year.
Masan Consumer Holdings' net revenue reached VND20,376 billion, up 10.5% year-on-year, after 9 months. The product lines with outstanding business results were spices, convenience foods, and personal and family care products, recording growth of 21%, 8.3%, and 39.4%, respectively. In the third quarter, gross profit margin recorded a historical high of 45.6%, helping to boost EBITDA margin to 26%. This was thanks to a strong brand, a product portfolio with high profit margins, the ability to ensure low raw material costs, and optimize production conversion costs.
Masan MEATLife's revenue increased by 47.5% in the third quarter and 61.1% in the first nine months compared to the same period in 2022, notably the processed meat segment's revenue increased by 35.9% to VND1,714 billion in the first nine months. Regarding the branded chilled pork segment, MML representative said that it has narrowed the price gap with traditional markets through the exclusive price program for WIN members, helping to increase daily revenue of MML products at WCM stores by 30%.
Phuc Long Heritage (PLH) also improved its profitability by rationalizing the number of kiosks. EBITDA margin reached 20.8% in the third quarter. Revenue from PLH stores outside WCM grew slightly, reaching VND876 billion in the first 9 months of the year.
Masan has also attracted $500 million in equity from Bain Capital. The company representative said the investment will help reduce financial leverage and optimize the company's balance sheet. Regarding SK Group's equity stake in Masan, the company said it has agreed on a multi-year roadmap to maximize value for shareholders of both businesses.
The group also announced that it has paid off its debt maturing in the past five years. In 2024, the total amount of bonds maturing will be nearly VND6,000 billion, lower than the company's current cash and cash equivalents of more than VND14,000 billion and EBITDA for the most recent 12 months of nearly VND14,000 billion. Cash and cash equivalents are expected to increase by approximately VND4,900 billion to VND12,250 billion after the equity investment led by Bain Capital.
People shop at Win's vegetable stall. Photo: Masan
In the remaining quarter of the year, Masan said it will focus on strategies to help WinCommerce improve sales productivity. Masan Consumer Holdings plans to improve and innovate beverage products to promote growth. Phuc Long Heritage aims to open 11 new stores in the fourth quarter and improve sales per store.
Meanwhile, Masan MEATLife expects to improve daily sales at each WCM point of sale from VND1.6 million to VND2 million by focusing on flexible pricing strategies and planning to distribute the right product types to the right stores.
Masan representative said that in addition to extending debt maturity, improving interest rates and increasing profits, the group continues to invest in innovations based on the strengths of the comprehensive retail consumer ecosystem such as membership programs and logistics systems.
Tue Anh
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