Masan Group (MSN) has just announced its full-year business results for 2020 with consolidated net revenue reaching VND 77,218 billion, up 106.7% compared to VND 37,354 billion in 2019. Correspondingly, the Company's net profit allocated to shareholders reached VND 1,234 billion.
Masan said that revenue growth last year was driven by the meat business (Masan MEATLife, MML) and branded consumer goods (MCH), along with index contributions from the consolidation of newly merged business segments.
The CrownX ranked 2nd in consumer industry revenue with 2.5 billion USD in 2020
The CrownX, the company holding MSN's interests in VinCommerce and Masan Consumer Holdings (MCH), recorded net revenue of VND54,277 billion (approximately USD2.5 billion), becoming the second largest consumer business company in terms of revenue in Vietnam.
Of which, VinCommerce (VCM) officially completed the first phase of the transformation process by the end of last year, recording a positive EBITDA of 0.2% with a profit of VND 16 billion.
On track, in Q4/2020, VinMart+ mini supermarkets and VinMart supermarkets achieved positive EBITDA margins of 4.1% and 2.8%, respectively, on a like-for-like basis, excluding general expenses at the store level. VinMart+'s revenue/m2 increased by 10.7%.
In parallel, Masan Consumer Holdings (MCH) also marked an important milestone when net revenue reached 1 billion USD for the first time in 2020, up more than 27% compared to 2019, mainly thanks to investment in brands.
It is noted that new innovations contributed 43% to MCH's revenue growth in 2020; especially in the food and personal care - family product lines.
Masan MEATLife increased EBIDTA by more than 20% in 2020, reaching VND 1,881 billion
Second, in the meat segment, Masan MEATLife earned net revenue from the integrated meat segment of USD 100 million, equivalent to VND 2,378 billion. Notably, the contribution of this business segment to consolidated net revenue increased 5 times, from 3% in 2019 to 15% in 2020: equivalent to revenue of VND 16,119 billion. EBITDA margin reached 11.7%.
It is known that the integrated meat business segment including MML's farm supply chain brought in net revenue of VND2,378 billion in 2020, contributing 15% to MML's consolidated net revenue, up 5 times compared to 2019.
Thanks to the integrated supply chain, the integrated meat business's 2020 EBITDA margin reached 6.9% as hog prices continued to be at an all-time high.
In the fourth quarter of 2020, MML continued to invest 51% of capital and successfully integrated 3F VIET. This is a company providing large-brand poultry products in the domestic market, and the above merger is part of MML's strategy to expand its animal protein business portfolio, to better meet the diverse animal protein needs of consumers.
On the other hand, revenue from the animal feed segment in 2020 grew steadily at 2.8% to VND13,746 billion, with the full-year EBITDA margin reaching 12.5%. The livestock industry has initially recovered, with MML's animal feed and poultry feed growing by 30% in the fourth quarter of 2020.
Tungsten is benefiting from the expected mineral supercycle in the future.
Third, the mineral sector: Masan High-Tech Materials (MHT) completed the acquisition of the tungsten business of HC Starck Group (HCS) in 2020. In parallel, MHT also reached an agreement to invest USD 90 million from Mitsubishi Materials Corporation in MHT (equivalent to 10.0% of fully diluted equity). In the market, the recent increase in APT prices (up 20% from the low of 2020), MHT emphasized that tungsten is benefiting from the expected mineral supercycle in the future, evidenced by the prices of many metals including copper at an 8-year high.
In 2020, MHT's net revenue grew by 57.8%, mainly thanks to the consolidation of HCS in June 2020. According to Masan, the purchase of 100% of HCS at a reasonable valuation in the context of low commodity prices is a great opportunity for MHT. The Company also recorded a one-time negative goodwill impact of VND 1,398 billion.
However, compared to 2019, MHT's EBITDA in 2020 decreased by 23.8% to VND1,433 billion due to the decline in demand across the tungsten value chain due to global economic uncertainties in the context of the Covid-19 pandemic and geopolitical conflicts.
Management said it had rationalised operating costs by around VND530 billion in 2020 and would continue to rationalise costs in 2021. Looking ahead, current market sentiment and demand for tungsten products have recovered as MHT’s monthly APT consumption in December 2020 reached its highest level since September 2019. LMB prices for APT tungsten products have recovered to USD245/MTU, up 20% from the bottom in 2020. Fluorspar prices are stable, copper prices are high and bismuth prices are starting to rise.
Finally, Techcombank (TCB) in 2020 also increased its after-tax profit by 23% to VND 15,800 billion.
Talking about 2020, Chairman of Masan Group, Mr. Nguyen Dang Quang said: "The CrownX retail consumer platform has completed the first phase of the transformation process, and in the fourth quarter of 2020, VinCommerce achieved positive EBITDA. This is just the starting point on the path to building an ecosystem that meets modern consumer needs. In 2021, Masan aims to transform VCM from a pure shopping destination to a platform serving essential needs, providing consumers with a seamless online-to-offline experience."
2021 revenue is expected to increase by 20-40%, EBITDA at 15-20%
Accordingly, in 2021, MSN expects to grow 20-40% in revenue, continued to be supported by the growth momentum of The CrownX, the meat business segment. EBITDA targets are 15-20% and net profit margin is 3-5%. Details of each segment include:
(1) The CrownX, in which:
+ VCM: Net revenue is expected to increase by 15-20% due to revenue growth from existing stores, expansion of minimart store system and repositioning of VinMart supermarket model.
+ MCH: Net revenue is expected to increase by 15-20% thanks to new innovations, the strategy of premiumizing the food portfolio and expanding the scale of the beverage and personal and family care products. EBITDA margin is expected to remain stable as the company invests in building brands and promoting new innovations.
(2) MML: Net revenue growth of 25-50% thanks to continued expansion of the meat business. Revenue from the meat business is expected to contribute 20-40% to MML's total revenue, driven by deeper market penetration of chilled meat (including pork and poultry) and expansion of the processed meat portfolio. The meat segment's EBITDA margin improved thanks to the above drivers, while the animal feed segment maintained an EBITDA margin of 10-12%.
(3) MHT: Net revenue growth of 50-100% from the merger of HCS and the prospect of a gradually improving commodity market. EBITDA margin is improved thanks to the above drivers along with a flexible supply chain.
Source: https://www.masangroup.com/vi/news/masan-news/Masan-records-revenue-doubing-amid-COVID-19.html
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