Masan’s detergent subsidiary’s 1H profit doubles to $3.2mln on pandemic

Jan.-June net revenue grew over 36 percent from 2019 since the sale of dry hand sanitizer, its new product, increase sharply when the coronavirus was detected in the country.
The detergent firm launched Net Care + antibacterial dry hand sanitizer during the last Covid-19 epidemic. In addition, the company got revenue from processing products for Unilever.
In the second quarter, Net’s after-tax profit was reported at nearly VND42 billion ($1.8 million), up 116 percent on-year, highest since 2009. 2Q revenue increased 31% to VND369.5 billion ($16 million).
Net Detergent has a distribution system of 300,000 traditional retailers and modern trading platform including 3,000 supermarkets across the country of Masan Group.
At recent Annual General Meeting of Shareholders, the firm got approval to place 2020 revenue target at VND1,300 billion ($56 million) and VND86.3 billion ($3.7 million) pre-tax profit. With the 1H business achievement, the company has completed 56% of the revenue plan and 98% of the profit plan.
In February, Masan HPC, a wholly-owned subsidiary of Vietnamese conglomerate Masan Group acquired 52 percent stake in Net Detergent. Masan spent nearly $24 million to hold the controlling stake at the detergent producer.
NETCO, which was established in 1968, is a leading local home care business. In 2018, the company reported 2019 net revenue of $48 million, which grew 3.6% comparing to 2018 while after-tax profit was $3.3 million, which grew 42.3% comparing to 2018.
Masan said the acquisition aligns with its 5-year strategy to broaden its product portfolio, which serves 100 million Vietnamese consumers, it said in the statement.
► Masan Consumer plans to acquire 60% stakes at Net Detergent