Masan Group (MSN) reported a profit of VND 701 billion in the third quarter of 2024, up 1,350% year-on-year.

Masan Group Corporation (Masan, code MSN - HOSE) has just announced its unaudited financial report for the third quarter of 2024 with positive results when profits recorded a growth rate of up to nearly 1,350%.

Masan Group (MSN) reported a profit of VND 701 billion in the third quarter of 2024, up 1,350% year-on-year.

Masan Group Corporation (Masan, code MSN - HOSE) has just announced its unaudited financial report for the third quarter of 2024 with positive results when profits recorded a growth rate of up to nearly 1,350%.

Specifically, in Q3/2024, Masan recorded net revenue of VND21,487 billion, up 6.6% compared to Q3/2023, thanks to sustainable growth from retail consumer businesses; profit after tax after allocation to minority shareholders reached VND701 billion, up 1,349.2% compared to the same period last year. This positive result is the result of strong profitability across retail consumer businesses, and VND788 billion improved thanks to reduced net interest expenses and no costs arising from exchange rate fluctuations.

In addition, Masan has hedged 100% of its long-term USD loans since the beginning of the year, which has helped the Group maintain its business results against the negative impacts of exchange rate fluctuations, helping its after-tax profit after allocation to minority shareholders increase by VND511 billion compared to the same period last year.

The retail consumer business segment maintained positive growth momentum along with higher profits from non-core activities.

Of which, Masan Consumer Corporation (code MCH - UPCoM) recorded a revenue growth of 10.4% over the same period in Q3/2024, reaching VND 7,987 billion. This positive figure was contributed by the premiumization strategy implemented in the Convenience Food and Spices sectors, helping to achieve growth of 11% and 6.7% over the same period, respectively; and innovation activities in the Beverage and Home & Personal Care sectors, helping to achieve growth of 18.8% and 12.4% over the same period, 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.

MCH has a strategy to reduce trade promotion activities to invest in activities with higher return on investment such as new channel development and brand building marketing, helping to optimize operating expenses on revenue by 70 basis points. Accordingly, the profit margin after tax after minority shareholder allocation recorded 25.9%, up 90 basis points compared to the same period last year.

In addition, 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 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.

Customers shop for products at good prices at WinMart supermarket

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.

At Masan MEATLife (MML), Q3/2024 recorded a slight increase in revenue of 1.7% YoY to VND1,936 billion and profit after tax before distribution to minority shareholders increased by VND105 billion, reaching VND20 billion YoY, the first time since 2023 that a positive profit figure was recorded. This positive result was driven by increased sales of processed meat and benefited from higher market prices for chicken and pork.

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.

At Techcombank (TCB – HOSE), an associate of Masan, contributed VND 1,136 billion to EBITDA in Q3/2024, corresponding to a growth rate of 8.7% over the same period last year.

Chin-Su products are familiar with family meals.

Regarding the Q4/2024 plan, Masan targets after-tax profit before minority shareholder allocation to reach VND2,726 billion and after-tax profit after minority shareholder allocation in the first 9 months of 2024 will complete 130.8% of the after-tax profit plan under the base scenario approved by shareholders at the beginning of the year.

The Group's management will continue to improve business results in Q4/2024 with the expectation of getting closer to the positive scenario profit plan of 2024 thanks to: continuing to focus on profit growth with a focus on the core retail consumer business; optimizing the WIN Membership program to create value for the business and Masan's partner brands; further debt reduction to improve the balance sheet and reduce financial costs; reducing ownership in non-core businesses while maintaining a tight capital allocation strategy.

“In Q3/2024, WinCommerce and Masan MEATLife achieved positive net profit 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 its positive scenario profit after tax plan 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,” said Dr. Nguyen Dang Quang, Chairman of Masan Group.

Source: https://baodautu.vn/tap-doan-masan-msn-bao-lai-701-ty-dong-trong-quy-iii2024-tang-truong-toi-1350-so-voi-cung-ky-d228217.html