Masan Consumer plans to issue additional shares at VND 10,000 per share

In a document prepared for approval by existing shareholders, Masan Consumer, listed on UPCoM as MCH, said the move will have an issuance ratio of 45.1% (1 share entitled to 1 purchase right and every 1,000 purchase rights entitled to purchase 451 newly issued shares).

Consumers shop for Masan Consumer products at WinMart supermarket. Photo courtesy of Masan Group.

The par value and the issuance price are both VND10,000 ($0.42) per share. The total value of shares issued at par value is VND3,268.1 billion ($132.5 million). The issuance is expected to help MCH bolster its charter capital and the trading prices of shares.

According to the Vietnam Securities Depository and Clearing Corporation, only those whose names are on the list of Masan Consumer shareholders on the last registration date will be eligible to buy the newly issued shares.

The issuance is expected to be deployed in 2024 or 2025. The specific time will be decided by the board of directors, upon State Securities Commission approval.

Consistent high dividends

In September, Masan Consumer finalized its shareholder list for paying additional dividend for 2023 at 168% par value. The payout date is October 4, 2024.

From July 2023-July 2024, Masan Consumer paid dividends of VND7,100 billion ($287.9 million) in two payments, at 100% par value. As a result, in just over one year (July 2023-September 2024), Masan Consumer has paid cash dividends of 268%.

For 2024, the company has announced a plan, subject to existing holders’ approval, for advance payment of 2024 dividends from retained earnings at a maximum of 100% (1 share will receive a maximum 2024 dividend advance of VND10,000).

The consistency in paying dividend has demonstrated Masan Consumer’s sustainability and profitability, executives said.

Strong competitor

MCH has carried its “record growth momentum” of 2023 with positive business results in the second quarter of this year. It recorded a year-on-year revenue growth of 14% and a high gross profit margin of 46.3%. In addition, the company's “Go Global” strategy also achieved positive results with export revenues growing 17% year-on-year in Q2.

From 2017 to 2023, MCH revenue grew 2.2x faster than the market average. According to a recent report by HSBC, MCH has recorded high profit margins and stable revenue growth and significantly outperformed its regional peers in the FMCG and packaged food sectors.

In 2023, the company posted a record-high post-tax profit of VND7,195 billion ($291.7 million), up 30% year-on-year. The earning per share (EPS) in 2023 reached VND9,888 ($0.4), a sharp increase compared to VND7,612 in 2022.

According to Kantar Worldpanel, at least one Masan Consumer product can be found in 98% of Vietnamese households. By the end of 2023, Masan Consumer had five brands with annual revenues of $150-250 million, including Chin-su, Omachi, Kokomi, Nam Ngu and Wake-up 247.

The company has said that it plans to closely coordinate with WinCommerce, retailer under the Masan Group ecosystem, known for its WinMart and WinMart+ supermarket chain, and the WIN Membership program to develop new products based on the analysis and understanding of customer behavior at these outlets.

Being part of the retail - consumer link of the parent group, would give Masan Consumer a significiant competitive advantage, company executives said.

In 2024, Masan Consumer expects net revenues between VND32,500 billion and VND36,000 billion ($1.32-1.46 billion). In addition to key products and business lines, the company is also developing innovative capabilities and processes to complete the FMCG portfolio in the future.

Company executives said the strategic goals were to develop six brands worth at least $1 billion, have the "Go Global" strategy achieve 10-20% of its revenue, make Vietnamese brands internationally recognized, and become the leading company in Southeast Asia in terms of revenue and profit growth by applying the new FMCG model.