In Q3 2024, Masan's net revenue reached VND 21,487 billion, a 6.6% increase compared to VND 20,155 billion in Q3 2023, thanks to sustained growth from its retail consumer business segments. Accordingly, at the end of the first nine months of 2024, Masan recorded VND 60,476 billion in net revenue, equivalent to VND 220 billion per day. The company reported having completed 130% of its base-scenario after-tax profit plan and is looking towards a positive scenario in Q4 2024.

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Photo: Masan

Masan Consumer maintains double-digit growth and plans to IPO in 2025.

Masan's branded consumer goods segment, Masan Consumer (MCK: MCH), continued to record positive results in the third quarter of this year. Masan Consumer's Q3 2024 revenue increased by 10.4% year-on-year, reaching VND 7,987 billion. This positive figure was contributed by the premiumization strategy implemented in the convenience food and condiment categories, resulting in growth of 11% and 6.7% respectively year-on-year. Innovation in the beverage and household and personal care categories contributed to growth of 18.8% and 12.4% respectively year-on-year. The company continued to maintain a high gross profit margin of 46.8% in Q3 2024.

Masan Consumer's recent IPO process has also seen positive developments. On October 2nd, Masan Consumer announced plans to transfer its MCH shares from the UPCoM exchange to the HoSE exchange. In addition, the company announced plans to offer 326.8 million shares to existing shareholders at a ratio of 100:45.1 (shareholders owning 1,000 shares are entitled to purchase an additional 451 new shares at a price of VND 10,000 per share). This could be a preparatory step for listing MCH shares on the HoSE. According to the company, Masan aims to complete the listing of MCH shares on HoSE in 2025.

WinCommerce achieved positive after-tax profit for the entire quarter.

For Masan's retail segment, WinCommerce (WCM) recorded a 9.1% year-on-year revenue growth in Q3 2024, reaching VND 8,603 billion across its entire network. This was primarily driven by the new WIN store models (serving urban shoppers) and WinMart+ Rural (serving rural shoppers). WCM's after-tax profit reached a positive VND 20 billion in Q3 2024, the first time since the Covid-19 pandemic. This indicates a sustainable profit trajectory in the future.

As of September 2024, WCM operates 3,733 stores, expanding with 60 new stores since Q2 2024. The opening of new stores has been accelerated again. WinMart supermarkets achieved positive operating profit (EBIT) while revenue growth remained unchanged, mainly due to improved spoilage rates.

According to the report, WCM's strategic focus for the final quarter of 2024 is to continue achieving positive after-tax profits, boost LFL growth, and accelerate store openings to reach approximately 100 new stores per quarter. WCM will continue to strengthen its position in rural areas with the proven WinMart+ Rural model.

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Photo: Masan

Masan MEATLife records positive profits for three consecutive quarters.

In Q2 2024, Masan's branded meat segment, Masan MEATLife (MML), recorded a year-on-year increase in operating profit (EBIT) of VND 43 billion and a year-on-year increase in net profit before minority shareholder allocation (NPAT Pre-MI) of VND 105 billion in Q3 2024. This marks the third consecutive quarter that MML has reported positive EBIT and the first quarter to achieve a positive NPAT Pre-MI (VND 20 billion) since 2023. These positive results were driven by increased sales in the processed meat segment, benefiting from higher market prices for chicken and pork.

MML continues its mission to “revolutionize” Vietnam’s burgeoning processed meat market with delicious, high-quality products under its two “Love brand” labels, Ponnie and Cowboy Pork. These two brands have achieved approximately 50% market share in the sterilized sausage market.

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 an uninterrupted supply of raw materials for domestic meat production.

Masan's tea and coffee chain, Phuc Long Heritage (PLH), saw a 12.8% year-on-year increase to VND 425 billion in Q3 2024, primarily driven by the opening of 21 new stores outside of WCM during the same quarter. PLH currently operates 174 stores nationwide.

“I believe Masan will get closer to its optimistic after-tax profit target of VND 2 trillion. We have been focusing on integrating our entire retail consumer platform, aiming for double-digit consolidated revenue and profit growth by 2025,” said Mr. Nguyen Dang Quang, Chairman of Masan Group.

The positive business results of the consumer retail segment reflect the strong recovery of Masan as well as the consumer market in the first nine months of 2024. Looking ahead to the final quarter of 2024, according to the management, Masan is confident that it will move closer to its 2024 profit plan under a positive scenario.

Vinh Phu