Drive from retail consumer business

According to IMF data, with a population of nearly 100 million, half of whom are under 32 years old, Vietnam has achieved impressive GDP per capita growth with a CAGR of 7.1% since 2017, reaching over 4,000 USD in 2022 - the highest among ASEAN/EM countries. The government has set a target of raising GDP per capita to 7,500 USD in 2030 and 10,000 USD in 2035.

With the workforce gradually shifting to higher value-added industries, a large proportion of consumers in Vietnam will join the middle class in the next few years. Vietnam has been witnessing a golden period of consumption growth as well as consumer stocks. Among them, Masan Group's MSN stock will have many growth drivers thanks to the company's leading position in the consumer retail industry.

Consumer goods segment continues to maintain growth momentum

According to a report by HSBC, Masan’s branded consumer goods division, Masan Consumer, has high profit margins, stable revenue growth and significantly outperforms its regional FMCG and packaged food peers. From 2017 to 2023, Masan Consumer grew at a rate 2.2x the overall market rate.

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Photo: Masan

SSI Research's analysis report said that MCH's net revenue and net profit CAGR are 11.2% and 15.4%, respectively, in the period of 2019-2023. SSI Research attributed these results to the internal research team's active product innovation, stable demand, and solid market share growth. Of which, MCH's convenience food revenue CAGR is 16%. This is higher than the overall instant noodle market CAGR of 7% in the period of 2017-2023, according to Euromonitor.

With close relationships with 340,000 traditional retail partners, 6,000 modern trade points of sale and 5 strong brands with annual revenue of over VND 2,000 billion, Masan Consumer has penetrated almost every corner of the Vietnamese market, serving 98% of Vietnamese households. At the end of the first 9 months of 2024, Masan Consumer recorded double-digit growth in both revenue and profit. In particular, profit after tax in the third quarter and the first 9 months of 2024 increased by 14.5%, reaching VND 2,072 billion and increased by 13.8%, reaching VND 5,474 billion, respectively.

"Sweet fruit" from the retail sector

According to Masan's Q3/2024 business results report, the company's WinMart / WinMart+ / WiN retail chain recorded a 9.1% increase in revenue over the same period last year, reaching more than VND 8,600 billion. In the first 9 months, this modern retail chain achieved revenue of about VND 24,404 billion, an increase of nearly 9% over the same period last year. For the first time since Covid-19, Q3/2024 is the first quarter that WinCommerce (the company operating the WinMart / WinMart+ / WiN chain) achieved net profit after tax. This is a sign of a sustainable profit-making roadmap in the coming time.

Looking back 4 years ago, when Masan acquired WinCommerce, WinCommerce's EBITDA (earnings before interest, taxes, depreciation and amortization) was -7%. However, after just a few years, WinCommerce's EBITDA reached break-even and this year it is +4%. So EBITDA has changed by 11% in just 4 years.

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Photo: Masan

At an event earlier this year, WinCommerce leaders said they had completed the search for a profitable retail model. “We are ready to enter a new chapter - an era of revenue and profit growth,” said a WinCommerce representative. Not only has WinCommerce (WCM) initially realized this goal with a net profit of VND 20 billion in the third quarter, but it is also accelerating the expansion of its system. As of September 2024, WCM operates 3,733 points of sale, opening a net of 60 new stores since the second quarter of 2024. By the end of 2024, this retailer is expected to reach a total of about 4,000 points of sale nationwide.

Pioneer in the food industry, achieving positive profits in the third quarter of 2024

Since its launch, MEATDeli, a brand of Masan MEATLife (a member company of Masan Group), has made a strong mark in the Vietnamese food industry. With the mission of providing fresh, delicious, tender meat products with European-standard Air-Chilled technology, the MEATDeli brand is the first choice of millions of Vietnamese families.

Continuous innovation has helped MEATDeli maintain its strong appeal. The brand not only focuses on improving quality but also on the convenience and practicality of each product, meeting the diverse needs of Vietnamese households.

According to the company's financial report, in the third quarter of 2024, Masan MEATLife (MML) recorded an increase of VND43 billion in EBIT compared to the same period last year and an increase of VND105 billion compared to the same period for NPAT before minority shareholders' distribution (NPAT Pre-MI) in the third quarter of 2024. This is the third consecutive quarter that MML reported positive operating profit (EBIT) and the first quarter with positive NPAT Pre-MI (VND20 billion) since 2023.

In 2024, Masan plans to have revenue of VND84,000 to VND90,000 billion (growth of 7% to 15%). In the first 9 months of 2024, Masan achieved VND1,308 billion in profit after distributing to minority shareholders, completing 130.8% of the plan and approaching the net profit plan of VND2,000 billion in 2024, under the positive scenario.

Vinh Phu