From operating model to the potential of a "national stock" in the FMCG industry

In the context of the 2024-2025 market continuously fluctuating and cash flow tending to be more cautious, Masan Consumer's MCH stock is mentioned as a representative of the fast-moving consumer goods industry that possesses both defensive factors and growth momentum.

The company maintains a stable cash flow to pay regular cash dividends, while implementing initiatives to restructure distribution, innovate products and expand international markets. This combination is considered the foundation for MCH to maintain a stable position in the medium- and long-term portfolios of many investors.

Defensive platform: strong cash flow, cash dividend payments of about $1.2 billion

From 2018 to the first half of 2025, Masan Consumer (a member company of Masan Group (Hose: MSN)) has paid out nearly $1.2 billion in cash dividends. This figure reflects the ability to generate and maintain stable operating cash flow, a core factor for investors who favor defensive stocks. Continuous dividend payments in the context of fluctuating raw material costs and selling expenses show that the business's operating model has a relatively high level of stability.

Masan Consumer maintains stable growth rate and high profitability

For many years, Masan Consumer has maintained a stable growth rate and high profitability. In the period 2017-2024, the company's revenue recorded a compound annual growth rate (CAGR) of about 13%, EBITDA margin of about 26% and ROIC exceeding 200%, which is highly appreciated among FMCG companies in the Asia- Pacific region. These indicators reflect a business model with good profit margins, and at the same time show that the company is able to convert accounting profits into real cash flow, creating conditions to maintain cash dividends without putting pressure on liquidity.

Large brand portfolio contributes to stable cash flow.

Large brand portfolios contribute to stable cash flow. Brands such as CHIN-SU, Nam Ngu, Omachi, Kokomi and Wake-Up 247 all generate over $100 million in annual sales, maintain high recognition and stable consumption frequency. For FMCG companies, brand strength is a decisive factor in long-term cash flow performance.

Growth drivers - direct distribution, R&D and Go Global

In addition to the cash flow defense layer, MCH continues to deploy new growth drivers. From 2024, the enterprise will accelerate the "Retail Supreme" model (Direct Distribution) to reduce dependence on traditional retail channels, improve the speed of goods turnover and effectively control inventory. By the third quarter of 2025, the direct distribution system will reach about 345,000 points of sale, an increase of 40% over the same period. This trend helps enterprises stabilize the supply chain in the context of GT channels being subject to many changes from tax policies.

The financial results for the third quarter of 2025 recorded a clear improvement: revenue reached about VND 7,500 billion, up 20% compared to the previous quarter; export revenue increased by 14.8%; and modern channel (MT) revenue increased by 13% over the same period. These figures show the initial positive impact from the new distribution model.

The Consumer Innovation Center (CIC) generates more than 100 innovations annually

In terms of product innovation, MCH maintains an investment level of approximately 3% of its revenue in product research and development (R&D) each year. The Consumer Innovation Center (CIC) generates more than 100 initiatives annually, ranging from improving existing products to developing new product lines. This helps businesses adapt more quickly to consumer trends and maintain a competitive advantage in the industry.

In the international market, MCH has expanded its presence to more than 26 countries. In the period 2022-2024, net export revenue increased from 38 million USD to 51 million USD, corresponding to a CAGR of about 16%, with an EBIT margin of about 30%. By 2025, international revenue contributed about 5%, and the business aims to increase to 10-20% in the coming years. This is a growth space to further support the domestic market, which has already reached a high level of penetration.

Brands such as CHIN-SU, Nam Ngu, Omachi, Kokomi and Wake-Up 247 all achieve revenue of more than 100 million USD/year.

The combination of factors from direct distribution, product innovation to international expansion shows that MCH is maintaining both a defensive layer of cash flow and growth momentum to improve business results. As domestic consumption is expected to recover, the FMCG group is likely to continue to attract attention, especially businesses with effective operating foundations. It is the steadfastness with long-term strategy and effective operating capacity that has helped Masan Consumer maintain stable growth through many economic cycles, thereby being considered by many investors as one of the "national stocks" of the Vietnamese FMCG industry.

The company is also accelerating its listing roadmap on HOSE, reinforcing its commitment to transparency and expanding access to global investors. According to Masan Group Deputy General Director Michael Hung Nguyen, “Currently, MCH’s profile is almost complete, the company is waiting for the business results of the fourth quarter of 2025 - the first quarter of 2026 to decide when to list on HoSE.” With a current capitalization of about VND220,000 billion, MCH is expected to soon list on HOSE, becoming a typical representative of the Vietnamese consumer stock group in 2026.

Source: https://thoibaonganhang.vn/tu-mo-hinh-van-hanh-den-tiem-nang-cua-mot-co-phieu-quoc-dan-nganh-fmcg-174308.html