Masan reports profit after a quarter suffering $9.2mln losses

Xuan Thinh Thursday | 07/30/2020 21:54

Masan aims to serve at least 50 million consumers their daily grocery needs. Photo courtesy of Masan

Masan Group reported net profit after tax post-minority interest at VND195 billion ($8.4 million) in the second quarter, according to its consolidated earning statement released on Thursday.

The Vietnamese conglomerate has reported quarterly profit after suffering VND216 billion ($9.2 million) loss in first quarter.

Masan’s net profit after tax in six-month period was reported at VND117 billion, lower compared to previous corresponding periods.

Net revenue for first half of 2020 increased 103.3% to VND35,404 billion ($1.5 billion) versus VND17,411 billion ($751 million) a year earlier, primarily driven by high double-digit growth The CrownX, Masan’s newly-established integrated consumer-retail platform.

The firm, which consolidates Masan’s interests in its FMCG and retail businesses, posted topline of VND12,592 billion in 2Q and VND25,848 billion in 1H, up 20.5% and 26.8%, respectively.

In previous quarter, Masan acquired an additional 12.6% stake in TCX for a total cash consideration of $862 million.

“We have transformed many FMCG categories but our share of the consumer wallet is only 1%. The CrownX is our strategic bet to transform the entire grocery space both in terms of products and services”, said Chairman Nguyen Dang Quang.

Masan aims to serve at least 50 million consumers their daily grocery needs, increasing share of the consumer wallet to 25%, he added.

Meat business earns VND1,055 billion during the first-half 2020. Photo: Masan

The overall profits and revenue were contributed by five major subsidiaries of the conglomerate, including VCM Services and Trading Development JSC, Masan High-Tech Materials, formerly named Masan Resources, Masan MEATLife, Techcombank, Masan Consumer.

VCM, the parent of VinCommerce, operator of VinMart, VinMart+ and VinECO delivered negative VND1,058 billion in EBITDA in 1H.

Masan High-Tech Materials, formerly Masan Resources, which was adversely impacted by the shutdown of the global economy due to COVID-19, reported flat net revenue in 2Q versus the same period of last year.

Masan MEATLife’s meat business continued to scale up while enhancing operational efficiencies. First-half 2020 meat business revenue was VND1,055 billion with momentum demonstrated by a 32.7% growth in 2Q against 1Q.

Techcombank continues to post stellar results despite having to navigate the COVID-19 pandemic. Reported profit before tax grew by 19% to reach VND6,738 billion in 1H versus VND5,662 billion of a year ago.

► Masan spends $1bln to increase stake in new-established The CrownX

► Masan’s 1Q revenue doubles to over $751 million on growing retail arms