ANTD.VN - On October 24, 2024, Masan Group Corporation (HOSE: MSN, “Masan” or “Company”) announced its unaudited financial statements for the third quarter of 2024.
“In Q3/2024, WinCommerce and Masan MEATLife achieved positive profit after tax and are key drivers in maximizing shareholder value. This trend will accelerate further as we continue to execute on our strategic initiatives in the medium term. Masan Consumer continues to deliver double-digit revenue and profit growth and is entering a phase of acceleration as trends in premiumization, product innovation and out-of-home consumption increase. With this momentum, I believe Masan will be closer to achieving its positive scenario profit after tax target of VND2,000 billion. We have been focusing on integrating our entire retail consumer platform, aiming for double-digit consolidated revenue and profit growth by 2025, ” shared Dr. Nguyen Dang Quang, Chairman of Masan Group.
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| Customers shopping at WinMart supermarket |
In Q3/2024, Masan Group's net revenue will reach VND21,487 billion, up 6.6% compared to VND20,155 billion in Q3/2023, thanks to sustainable growth from retail consumer businesses that helps offset the restructuring of MML's farm chicken segment and the temporary disruption of MHT's business operations.
EBITDA reached VND4,233 billion in Q3/2024, up 13.2% year-on-year. This significant increase was driven by positive profit growth momentum across all retail consumer business segments.
Post-MI NPAT reached VND701 billion in Q3/2024, up 1,349.2% year-on-year. This positive result was the result of strong profitability across the consumer retail business segments, and VND788 billion improved due to lower net interest expenses and no foreign exchange fluctuation costs.
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| Chin-Su products are familiar with family meals. |
Masan has hedged 100% of its long-term USD loans since the beginning of the year, which has helped Masan maintain its business results (P&L) against the negative impacts of exchange rate fluctuations, helping its NPAT after distribution to minority shareholders (NPAT Post-MI) increase by VND511 billion compared to the same period last year.
Net interest expense improved by VND277 billion year-on-year in Q3/2024 thanks to cash flow from operating activities and additional capital during the period.
Consumption - retail maintains positive growth momentum in both revenue and profit
Masan Consumer Corporation (UpCOM: MCH) achieved a revenue growth of 10.4% year-on-year in Q3/2024, reaching VND7,987 billion. This positive figure was contributed by the premiumization strategy implemented in the Convenience Food and Seasonings sectors, helping to achieve growth of 11% and 6.7% year-on-year, respectively; and innovation activities in the Beverages and Home & Personal Care sectors, helping to achieve growth of 18.8% and 12.4% year-on-year, respectively.
MCH continued to maintain a high gross profit margin of 46.8%, 20 basis points higher than Q3/2023, thanks to the implementation of a premiumization strategy in the Seasonings and Convenience Foods segment through a combination of high-margin products and appropriate pricing strategies in key sub-categories, while material and packaging costs increased.
WinCommerce (“WCM”) recorded a 9.1% YoY revenue growth in Q3/2024, reaching VND8,603 billion across the network, mainly contributed by the new store models WIN (serving urban shoppers) and WinMart+ Rural (serving rural shoppers), achieving LFL growth of 12.5% and 11.5% YoY, respectively. The traditional store model achieved 8% YoY growth. WCM's net profit after tax reached a positive figure of VND20 billion in Q3/2024, the first time since the COVID period. This is a clear sign of a sustainable profit-making path in the coming time.
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| WinMart's private label products are 10-20% cheaper than similar products on the market. |
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 accelerating again. LFL growth continues to improve, new store formats with differentiated and superior customer value give WCM more flexibility in choosing store locations.
Masan MEATLife (“MML”) recorded a year-on-year increase in EBIT of VND43 billion and a year-on-year increase in NPAT before minority interest distribution (NPAT Pre-MI) of VND105 billion in 3Q24. This is the third consecutive quarter that MML has reported positive EBIT and the first quarter with positive NPAT Pre-MI (VND20 billion) since 2023. This positive result was driven by increased sales of processed meat segment and benefited from higher market prices for chicken and pork.
In Q3/2024, meat revenue including fresh 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 restructuring strategy for the farm chicken segment and focused more on the downstream value chain. As a result, MML's revenue increased slightly by 1.7% YoY to VND1,936 billion in Q3/2024.
MML continues its mission to revolutionize Vietnam’s growing processed meat market with delicious, healthy, high-quality products, under its two strong brands, Ponnie and Heo Cao Boi. These two brands have achieved ~50% market share in the sterilized sausage product market.
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| Housewives choose MEATDeli cool-cured meat |
Phuc Long Heritage ’s (“PLH”) net revenue increased by 12.8% year-on-year to VND425 billion 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. Daily LFL revenue of PLH stores outside WCM maintained stable growth in Q3/2024, up 2% compared to Q2/2024.
Q4 is closer to positive profit plan for 2024
With VND2,726 billion in NPAT Pre-MI and VND1,308 billion in NPAT Post-MI in the first 9 months of 2024, MSN has completed 130.8% of the base case NPAT plan approved by shareholders at the beginning of the year. Management will continue to improve business results in Q4/2024 with the expectation of getting closer to the positive scenario profit plan for 2024.
Focus on Q4, continue to focus on profit growth with a focus on core retail consumer business. Masan will optimize the WIN Membership program to create value for the business and Masan's partner brands; Further reduce debt to improve the balance sheet and reduce financing costs; Reduce ownership in non-core businesses while maintaining a tight capital allocation strategy.
MCH's consumer goods segment will accelerate revenue growth in Q4/2024 by continuing to implement the premiumization strategy in the Spices and Convenience Foods categories, implementing innovations in the Beverages, Home & Personal Care and Instant Coffee categories, and streamlining underperforming SKUs to optimize profitability.
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| Customers shopping at WinMart Royal City on the morning of September 7 |
WCM Retail continues to achieve positive NPAT, accelerating LFL growth while accelerating store openings to ~100 new stores per quarter. WCM will continue to strengthen its position in rural areas with its proven WinMart+ Rural model.
MML's meat division further invests in long-term profits from processed meat to achieve sustainable profitability.
Phuc Long tea and coffee chain under PLH focuses on improving LFL growth and integrating into the WIN Membership program to optimize profit margins.
Finally, MHT completed the sale of HCS to reduce financial leverage, sell copper inventory, optimize costs and improve operating efficiency.
Source: https://www.anninhthudo.vn/masan-lai-701-ty-dong-trong-quy-iii-2024-post593593.antd
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