Masan Group targets consolidated net revenue of VND84,000 - 90,000 billion, profit of VND2,200 - 4,020 billion, double that of 2023.
The above results are expected by the group to correspond to different scenarios of macroeconomic conditions. In particular, the branded consumer goods sector of Masan Consumer Holdings (MCH) is expected to bring in VND 32,500 - 36,000 billion in net revenue. This is also the sector with record business results last year, with a profit margin breaking the peak of 44.9%, reaching VND 7,431 billion in EBITDA profit (Earnings before tax, depreciation and interest) for Masan. Masan Consumer Holdings' key brands include Chin-su, Omachi, Kokomi, Vinacafe...
The "Go Global" strategy is an important medium- and long-term growth driver for MCH as the company aims to promote Vietnamese F&B culture to 8 billion consumers worldwide. Accordingly, export revenue increased to VND 1,005 billion in 2023, up 13.6% over the same period in 2022. Notably, in the US market, Chin-su chili sauce maintained its position in the top 8 best-selling products on Amazon - the No. 1 e-commerce platform in the US. From 2020 to 2023, total export revenue achieved a compound annual growth rate (CAGR) of 31%.
Masan owns many FMCG brands chosen by consumers. Photo: Masan
In the supermarket segment, WinCommerce (WCM) expects to achieve net revenue of VND32,500 to VND34,000 billion, up 8% to 13% year-on-year, respectively. This growth is driven by network expansion and positive results from new stores.
Masan MEATLife (MML) is expected to achieve net revenue of around VND7,100 - 7,800 billion, equivalent to an increase of 2% to 12% over the same period thanks to focusing on investing in the processed meat business and reducing the scale of chicken farms.
In the F&B segment, Phuc Long (PLH) aims to bring in VND1,700 - 2,170 billion, corresponding to a growth rate of 17% to 41% over the same period. The brand plans to have 30-60 more stores outside of WCM (including standard stores, Flagship stores and kiosks) focusing on Hanoi and Ho Chi Minh City. Currently, Phuc Long owns 156 stores nationwide.
Masan said it will continue to deleverage to improve its balance sheet, reduce interests in non-core businesses while maintaining a tight capital allocation strategy. The group plans to achieve core after-tax profit before distribution to minority shareholders, expected to reach VND2,290 - 4,020 billion, a strong growth compared to VND1,950 billion in 2023.
In a volatile capital market, businesses with consumer-focused businesses that generate solid cash flows like Masan have many advantages in accessing domestic capital markets.
and internationally under very favorable conditions. Masan’s non-cyclical business gives management confidence in the favorable conditions ahead in increasing the Company’s liquidity in the coming months.
Vegetable area at Winmart supermarket. Photo: Masan
Masan’s management believes that the consumer market in Vietnam will grow slightly in the first half of this year and recover quickly in the second half. However, in the context of the gloomy global economic outlook that may affect the recovery roadmap, the group will plan for both a slow market recovery scenario and a fast growth scenario in 2024.
In 2023, Masan will have more than VND 78,252 billion in consolidated revenue, a slight increase of nearly 3% compared to 2022. Core after-tax profit before allocation to minority shareholders will reach VND 1,950 billion.
Thai Anh
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