Masan earned 701 billion VND in profit in the third quarter, completing 130% of the 2024 profit plan

Masan Group Corporation (HOSE: MSN, “Masan” or the “Company”) today announced its unaudited financial statements for the third quarter of 2024. “In the third quarter of 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 over 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. ■ Net revenue: In Q3/2024, Masan Group's net revenue reached VND21,487 billion, up 6.6% compared to VND20,155 billion in Q3/2023, thanks to sustainable growth from retail consumer businesses that helped offset the restructuring of MML's farm chicken segment and the temporary disruption of MHT's business operations.

Masan earned 701 billion VND in profit in the third quarter, completing 130% of the 2024 profit plan

■ EBITDA: EBITDA reached VND4,233 billion in Q3/2024, up 13.2% YoY. This significant increase was driven by positive profit growth momentum across all retail consumer business segments. ■ Profit after tax (“NPAT”): NPAT after minority shareholder distribution (NPAT Post-MI) reached VND701 billion in Q3/2024, up 1,349.2% YoY. This positive result was the result of strong profitability across all retail consumer business segments, and VND788 billion improved due to lower net interest expenses and no foreign exchange rate fluctuation costs. ■ 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 expenses improved by VND277 billion compared to the same period in Q3/2024 thanks to cash flow from operating activities and additional capital during the period. ■ The retail consumer business segment maintained positive growth momentum along with higher profits from non-core activities. ■ Masan Consumer Corporation (UpCOM: MCH) achieved revenue growth of 10.4% compared to the same period in Q3/2024, reaching VND7,987 billion. This positive figure was contributed by the premiumization strategy implemented in the Convenience Foods and Seasonings categories, which achieved growth of 11% and 6.7% YoY, respectively; and innovation activities in the Beverages and Home & Personal Care categories, which achieved growth of 18.8% and 12.4% YoY, respectively. ■ MCH continued to maintain a high gross profit margin of 46.8%, 20 basis points higher than in 3Q23, thanks to the implementation of the premiumization strategy in the Condiments and Convenience Foods category through a combination of high-margin products and appropriate pricing strategies in key sub-categories, while material and packaging costs increased. ■ MCH has a strategy to reduce trade promotion activities to invest in activities with higher return on investment (ROI) such as new channel development and brand building marketing, helping to optimize operating expenses on revenue by 70 basis points. Accordingly, the profit after tax (NPAT) margin after minority shareholder distribution (NPAT Post-MI margin) recorded 25.9%, up 90 basis points compared to the same period last year. ■ Inventory at distributors remained stable at 14 days. ■ WinCommerce (“WCM”) recorded a 9.1% YoY revenue growth in Q3/2024, reaching VND8,603 billion across the entire 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. ■ 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 value for customers give WCM more flexibility in choosing store locations. ■ WinMart supermarkets achieved positive operating profit (EBIT) while revenue growth was flat, mainly due to improved loss ratio. ■ Masan MEATLife (“MML”) recorded an increase of VND43 billion in EBIT year-on-year and an increase of VND105 billion year-on-year in NPAT Pre-MI in Q3/2024. This is the third consecutive quarter of positive EBIT for MML and the first quarter of positive Pre-MI NPAT (VND20 billion) since 2023. This positive result was driven by increased processed meat sales and benefited from higher market prices for chicken and pork. In 3Q24, meat revenue including fresh pork, chicken and processed meat increased by 13.6% YoY while farm revenue decreased by 28.2% YoY in 3Q24 as MML implemented its strategy to restructure its farm chicken business and focus more on the downstream value chain. As a result, MML's revenue increased slightly by 1.7% YoY to VND1,936 billion in 3Q24. ■ 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. ▪ The implementation of product innovations contributed VND130 billion, which was the main driver for the 19.4% YoY growth in the processed meat segment in 3Q24. Accordingly, the strategic focus is on diversifying products to expand consumption opportunities. ▪ The use of pork for processed meat increased from 5.8% in 3Q23 to 7.4% in 3Q24, in line with MML's strategy to increase overall gross profit margin and enhance vertical integration. ■ The restructuring of the farm segment is an effort by the company to mitigate 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. ■ 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. ■ Masan High-Tech Materials’ (“MHT”) EBIT in Q3/2024 decreased by VND117 billion compared to the same period last year. This is due to lower market demand, business disruptions due to Typhoon Yagi, and planned plant maintenance amid favorable market prices. ■ Management has been focusing on selling copper inventories. Accordingly, total copper sales in Q4/2024 are expected to exceed total sales in the first 9 months of 2024. The sale of HC Starck to Mitsubishi Materials Corporation for a purchase price of USD 134.5 million is expected to be completed before the end of 2024. At that time, MHT is expected to benefit from a long-term increase in net profit after tax of USD 20-30 million. The proceeds from the transaction will be used to reduce MHT's debt, while the sale of HCS will also help MHT relieve itself of debt from HCS's pension fund, which is worth approximately USD 196 million as of Q3/2024. ■ Techcombank (“TCB”), an associate of Masan, contributed VND1,136 billion to EBITDA in Q3/2024, representing a growth of 8.7% year-on-year. For detailed results, please refer to the bank’s website. Q4/2024 Plan: Achieving VND2,726 billion in NPAT before minority shareholder distribution (NPAT Pre-MI) and VND1,308 billion in NPAT after minority shareholder distribution (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 thanks to: ■ Strategic focus: ■ Continue to focus on profit growth with a focus on the core retail consumer business. ■ 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 financial costs. ■ Reduce ownership in non-core businesses while maintaining a tight capital allocation strategy. ■ MCH: Accelerate revenue growth in 4Q24 by continuing to execute the premiumization strategy in the Condiments and Convenience Foods categories, implementing innovations in the Beverages, Home & Personal Care and Instant Coffee categories, and streamlining underperforming SKUs to optimize profitability. ■ WCM: Continue to achieve positive NPAT, accelerate LFL growth while accelerating store openings to reach ~100 new stores per quarter. WCM will continue to strengthen its position in rural areas with the proven WinMart+ Rural model. ■ MML: Invest further in long-term profits from the processed meat segment to achieve sustainable profitability. ■ PLH: Improve LFL growth and integrate into the WIN Membership program to optimize profit margins. ■ MHT: Completed the sale of HCS to reduce financial leverage, sell copper inventory, optimize costs and improve operational efficiency. Source: https://vov.vn/doanh-nghiep/doanh-nghiep-24h/masan-lai-701-ty-dong-trong-quy-iii-hoan-thanh-130-ke-hoach-loi-nhuan-nam-2024-post1130618.vov