Masan's consumer business segment grew nearly 70%

According to the unaudited financial report of the first quarter of 2024 of Masan Group Corporation (HOSE: MSN) just announced, Masan's consolidated revenue increased slightly to VND 18,855 billion. Notably, Masan's core consumer business segment recorded operating profit (EBIT or earnings before interest and taxes) growth of 69.7% over the same period, showing the positive recovery of the consumer market and the growth momentum of strategic initiatives. According to Masan, the notable highlights in the first quarter of 2024 were: The CrownX (TCX), Masan's integrated retail consumer platform, merging Masan Consumer Holdings (MCH) and Wincommerce (WCM), recorded revenue growth of 6.4% over the same period last year to VND 14,152 billion. Of which, MCH's net revenue increased by 7.4% year-on-year to VND6,727 billion in Q1/2024. This was due to improved sales of other product lines, especially double-digit growth rates recorded in the Convenience Food, Beverages and Home Care categories with increases of 10.3%, 23.4% and 15.2% year-on-year, respectively. Meanwhile, MCH's gross profit margin remained at 45.9% in Q1/2024, up 400 basis points compared to Q1/2023. MCH's net profit after tax before minority shareholder distribution increased by 31.5% to VND1,505 billion in Q1/2024.

In Q1/2024, WCM's net revenue increased by 8.5% year-on-year to VND7,957 billion. The growth in net revenue was driven by the opening of many new stores, the number of stores increased sharply from last year. In addition, mini-supermarkets (WinMart) had net revenue increase of 11.4%, reaching VND5,364 billion, supermarkets (WinMart) reached VND2,523 billion in Q1/2024, recording an increase of 3.1% over the same period last year. Masan MEATLife (MML) also achieved revenue of VND1,720 billion in Q1/2024, up 7.5% over the same period. This result came from the growth of the branded pork segment and the farm pig segment, increasing by a total of 23% over the same period last year. This helped offset the decline in the poultry segment. Revenue from chicken farms decreased by 29.7% YoY as MML restructured its chicken farms to optimize costs.

Despite the challenging macro environment, Phuc Long's (PLH) EBITDA margin remained stable at 15.8% in Q1/2024 thanks to restructuring efforts of underperforming kiosks in WCM, helping to improve the company's operating efficiency.

MHT’s results continue to be impacted by weak global customer demand. However, blasting operations resumed at the end of Q1 2024, indicating positive growth potential for MHT in the near term. MHT will continue to sell its copper inventory, which has a market value of USD 90 million as of March 31, 2024.

Dr. Nguyen Dang Quang, Chairman of Masan Group, shared: “We will further boost the profitability of WinCommerce, Masan MEATLife and Phuc Long to be on par with Masan Consumer. Profitability will be an important metric in the next 18 to 24 months to maximize shareholder value." Recently, Masan completed raising $250 million in equity capital from Bain Capital. This investment will strengthen Masan's financial resources, improving the company's liquidity with an additional VND6,228 billion in cash. Masan is continuing to look for alternative strategic solutions to reduce debt and thereby reduce interest expenses.

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Source: https://bnews.vn/mang-kinh-doanh-tieu-dung-cua-masan-tang-truong-gan-70/331460.html