Continuing the growth momentum
MCH's report showed growth in revenue and profit, reflecting the company's stable performance amid a gradually recovering consumer market.
Specifically, MCH's net revenue in the first quarter of 2024 increased by 7.4% over the same period last year, reaching VND 6,727 billion. Accordingly, the Convenient Food, Beverage and Home Personal Care (HPC) segments led the growth "race", increasing by 10.3%, 23.4% and 15.2% respectively over the same period in 2023.
In particular, MCH's gross profit margin continued to increase strongly, continuing to approach 50%. Accordingly, gross profit in the first quarter reached 45.9%, up 400 basis points compared to the record 41.9% in the same period last year, EBITDA in the first three months of the year reached 25.3%.
Closing the first quarter of 2024, the company's net profit before distribution to minority shareholders (NPAT Pre-MI) reached VND1,505 billion, up 31.5% from VND1,144 billion in the first quarter of the previous year. Masan Consumer said the above results were achieved thanks to the company's ability to manage input material costs, brand strength and efficient operations.
Notably, in addition to positive business results, MCH still maintains healthy inventory levels in many product lines. This shows that consumer demand is recovering strongly after a long period of being affected by domestic and foreign macroeconomic fluctuations.
Seizing opportunities from the consumer market, Masan Consumer continuously innovates and improves products to meet the increasingly diverse needs of customers. In 2023 alone, MCH introduced more than 60 new innovations to the market. Notably, there is Omachi Self-boiling Hot Pot, suitable for the style and taste of young, dynamic, adventurous travelers ; EnerZ energy drink with 70% less sugar,... Or BupNon Tea365, a new tea product line, with impressive initial results. Launched in November 2023, the product recorded revenue of VND 106 billion in the first quarter of 2024 with a re-import rate of nearly 60%.
Masan Consumer is called the "family heirloom diamond" of the Group by Mr. Nguyen Dang Quang - Chairman of the Board of Directors of Masan Group. In 2023, this company set a new record profit when recording a profit after tax of VND 7,195 billion, a growth of 30% compared to 2022.
Owning “big brands”
The reason for MCH's price increase may come from recent positive information, including business results and growth strategies that the company's leaders have just announced at the 2024 General Meeting of Shareholders. Accordingly, MCH currently owns 5 "big brands" of consumer goods with sales of about 150-250 million USD with large "coverage". These are brands that have become familiar to millions of Vietnamese people such as CHIN-SU, Nam Ngu, Omachi, Kokomi and Wake-Up 247, accounting for 80% of MCH's revenue in the domestic market in the past 7 years. With a growth rate 2.2 times higher than the general market rate from 2017 to 2023, more than 98% of Vietnamese households own at least one MCH product.
In addition, the Q1 business results show that MCH is still on a steady growth path this year with revenue increasing by 7.4% compared to the same period in 2023, reaching VND6,727 billion. Masan Consumer's gross profit margin in Q1 was high at 45.9%, up 400 basis points compared to the same period in 2023. The company's leaders also talked about the "Go Global" strategy for the international market, as well as developing different product lines to "cover" the domestic FMCG market, currently worth 32 billion USD from the current level of 8 billion USD.
Into the top large capitalization enterprises
With the strong price increase in recent times, MCH has a corresponding capitalization of more than 146,000 billion VND (As of June 3). This capitalization even exceeds MCH's "parent company", Masan Group Corporation ("MSN"), which is more than 110,000 billion VND, according to the stock price on the same day. Although listed on the UpCOM floor, this capitalization has helped MCH enter the top enterprises on the stock exchange with the largest capitalization. MCH's current capitalization is higher than many "big caps" on the HOSE floor such as Vinamilk, Sabeco (SAB), Military Bank (MBB), Mobile World (MWG), Vincom Retail (VRE).
It is known that MSN is currently the largest shareholder, accounting for 68.1% of MCH's shares, and is also the owner of many other member companies, all of which are famous brands in the consumer - retail ecosystem such as WinCommerce, Masan MEATLife, WinEco, Phuc Long Heritage, Masan High-Tech Materials, etc. With a current capitalization lower than MCH and the ownership of other valuable assets, MSN's stock price does not fully reflect the intrinsic value of the enterprise. In addition, the "family diamond" MCH has not been reused here, this enterprise has many plans to continue its growth momentum.
Billion dollar brand and the journey of Vietnamese culinary ambassador
Masan Consumer has successfully built strong brands with annual revenue of 150 million to 250 million USD, contributing to 80% of total revenue growth. This enterprise is confidently planning to go out into the world on the journey of "Vietnamese culinary ambassador": "Every Vietnamese family, every Masan product. Every family in the world, at least one Masan product".
For example, CHIN-SU became a billion-dollar brand by premiumizing its brand, serving more than 65% of Vietnam's fish sauce consumption. Since 2007, the product has always improved the quality of fish sauce by improving flavor and packaging, while creating more value-added products, the brand has developed into a comprehensive and premium condiment category. The initial achievements of the "Go Global" journey - bringing Vietnamese cuisine to the world, targeting 8 billion global consumers, include CHIN-SU reaching the top 1 position on Korea's Coupang e-commerce platform, and the top 10 position on Amazon in 2023.
Omachi’s roadmap to becoming a billion-dollar brand is to premiumize the instant noodle experience from a “timely” food to a delicious, nutritious, and comforting meal. From 2017 to 2023, Omachi has doubled the number of meals served to 544 million per year, demonstrating the unique appeal of the premium experience to consumers. Accordingly, Omachi aims to expand its target market from the $1 billion Instant Noodles category to the $17 billion Restaurant Meal Replacement (RMR) category with the launch of the Self-Boiler Hotpot in 2023 and the Omachi Self-Cooking Rice in the near future.
In 2024, Masan Consumer expects net revenue to reach VND32,500 billion to VND36,000 billion. In addition to its core products and businesses, the company is also developing innovative capabilities and processes to complete its FMCG portfolio in the future.
Source: https://www.masangroup.com/vi/news/invest-in-vietnam/mch-ranks-among-the-leading-large-enterprises-by-market-capitalization.html
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