Masan's earnings were five times higher than the same period last year

Masan Group Corporation, today released its unaudited management accounts for the second quarter (“2Q2024”). “Masan Consumer continues to deliver double-digit top and bottom-line growth, while our other consumer platforms start to reach sustainable profitability levels – WinCommerce delivered profit in June and Masan MEATLife achieved positive EBIT for the second straight quarter. We are confident in delivering our 2024 profit guidance and growing profitably in the short and medium term to deliver superior shareholder returns.”, said Dr. Nguyen Dang Quang, Chairman of Masan Group.

Masan Consumer Corporation (“MSC”) delivered 14.0% YoY revenue growth in 2Q2024 to VND7,387 billion, driven by Convenience Foods (+20.7% YoY), Beverages (+17.6% YoY), and Coffee (+16.0% YoY). MSC maintained gross margin at a relatively high level of 46.3%, driven by power brands and premiumization acceleration commanding pricing power in the context of lower raw material costs. NPAT Pre-MI margin recorded 24.2%.

WinCommerce (“WCM”) reported 9.2% YoY revenue growth in 2Q2024 to reach revenue of VND7,844 billion across the whole network, mainly driven by new store formats of WIN (catering to urban shoppers) and Winmart+ Rural (catering to rural shoppers), with 6.3% and 10.7% LFL YoY growth, respectively. LFL growth accelerated to 6.8% in 2Q2024 and to 9.7% in June, primarily driven by an increase in traffic. WCM reported NPAT-positive in June 2024, providing a clear pathway to sustainable profitability.

As of June 2024, WCM operated 3,673 WCM stores, a net opening of 40 new stores since December 2023 as management exercised prudence amidst uncertainty in operating environment. WCM expects to accelerate store openings in 2H2024.

In 2Q2024, WCM recorded VND172 billion in EBITDA, up 11.1% YoY. Excluding the one-off profit from financial product distribution pilot in 2023, EBITDA increased by 33% YoY.  

Masan MEATLife (“MML”) delivered VND105 billion YoY uplift in EBIT in 2Q2024, reporting the second consecutive quarter of EBIT-positive, driven by increased sales mix from processed meat while benefiting from higher chicken and pork market prices and declining feed costs. MML continues its mission to revolutionize the under-developed Vietnamese processed meat market with tasty, healthy, high quality, non-additive products, with the two Love Brands Ponnie and Heo Cao Boi having captured ~50% of the respective market share in the sterilized sausage market.

Phuc Long Heritage (“PLH”)’s net revenue grew by 5.3% YoY to VND391 billion in 2Q2024, mainly driven by contribution from 15 new stores opened since 2Q2023. Management continued to maintain a prudent approach with 4 new stores outside of WCM added to the network in 2Q2024, now standing at 163 stores nationwide. LFL daily sales of PLH stores outside of WCM increased by 2.4% from the trough in 4Q2023, signaling recovering domestic demand for food services.  

Masan High-Tech Materials (“MHT”)’s EBIT improved by VND193 billion, supported by increasing APT and copper prices. The sale of H.C. Starck Holding GmbH to Mitsubishi Materials Corporation for an equity purchase price of USD134.5 million is expected to close before year-end 2024, upon which MHT is expected to book a one-time profit gain of approximately USD40 million in 2H2024 and benefits from long-term NPAT uplift of USD20-30 million. Transaction proceeds will be used to reduce MHT’s outstanding debt balance, whilst the deconsolidation of HCS also means MHT is relieved from HCS’s debt liabilities as of 2Q2024.

Techcombank (“TCB”), Masan’s associated company, contributed VND1,236 billion in EBITDA in 2Q2024, representing 38.5% YoY growth. For detailed results, please refer to the bank’s website.  

Consolidated Financial Results, in 2Q2024, Masan Group’s net revenue reached VND20,134 billion, a 8.2% increase from VND18,609 billion in 2Q2023, driven by robust topline performance in core consumer-retail businesses.

Having delivered VND1,425 billion in NPAT Pre-MI and VND607 billion in NPAT Post-MI in 1H2024, MSN’s achieved over 60% of the base case full-year NPAT guidance as approved by shareholders at the beginning of the year.