Masan Group reports 2019 profit at $240 million, up 13% from 2018

Vietnamese conglomerate Masan Group (HoSE: MSN), has reported its management accounts for the financial year 2019.

The corporation reported $240 million post-tax profit and minority interest for the 2019 while core after-tax net profit was $168.6 million, a growth of 12.7 percent.

The profit growth was contributed by double digit business growth of Masan MEATLife, Masan Consumer, and Masan Resources, and other businesses. 

Despite growth in profit, Masan Group’s net revenue dropped 2.2% to VND37,354 billion ($1.6 billion) compared to VND38,188 billion ($1.65 billion) in 2018.

The decline was mainly driven by 31.4% revenue decrease from Masan Resource and 1.3% revenue drop in Masan MEATLife while revenue of Masan Consumer grew by 8.6% to $813.4 million last year, statement says.

Masan Consumer Holding was among growth driver of the corporation with 15% year-on-year topline growth in fourth quarter last year thanks to beverage growth strategy, while the MEATDeli brand achieved significant milestone. December 2019 net revenue of the products reached VND100 billion ($4.3 million).

December 2019 net revenue of meat products reached $4.3 million. Photo courtesy of Masan

In 2018, MSN set foundation for integrated consumer platform by completing merger of Masan Consumer and Vingroup’s VCM to create Vietnam’s largest consumer group.

The conglomerate is the majority shareholder keeping 70% of the combined entity, which shall hold 85.7% of Masan Consumer and 83.7% of VCM, which currently operates 134 supermarkets, 2,888 minimarkets and 14 high-tech vegetable and fruit farms.   

“Not everyone agrees with the merger, but this is a quantum leap for Masan. Combining VCM’s modern retail platform with Masan’s 300,000 general trade point of sales uniquely position us to build a modern, end to end shopping platform nationwide”, said in the statement, Nguyen Dang Quang, chairman and CEO of Masan.

Masan said it chose Vingroup’s VCM because this is largest modern retail platform with 25% market share. The system is expected to boost sale of its branded meat MEATDeli, which currently has 60% market share in Vinmart and has successfully piloted in Vinmart+.

In 2020, the conglomerate targets double digit top and bottom line growth for Masan Consumer’s premium and beverage portfolio while meat business is expected to account for at least 20-25% of Masan MEATLife’s net revenue.

This year, beside shutting down 150-300 ineffective stores, Masan plans to enter the home and personal care market by launching a tender offer for up to 60% of domestic detergent company Net Detergent (HoSE: NET).

MSN shares were traded at VND53,400 ($2.3) on Ho Chi Minh City Stock Exchange on Wednesday. 

► Masan to hold 70% stake at retail giant merged with Vingroup’s retail arm

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