Masan targets doubling of profits in 2024

Xuan Thinh Wednesday | 01/31/2024 11:12

Masan reports 2023 net revenues up 2.7 percent to VND78.25 trillion ($3.19 billion) — Photo courtesy of Masan Group.

Vietnam’s private conglomerate generated VND78,252 billion ($3.19 billion) in net revenue in 2023 and targeted a doubled profit in 2024.

Masan's financial forecasts for 2024 expect a consolidated net revenue ranging between VND84,000 billion ($3.4 billion) and VND90,000 billion (3.68 billion), a 7% to 15% year-over-year growth.

The projected Core NPAT Pre-MI is expected to be within the VND2.29 and VND4.02 trillion ($93.68-164.46 million) range, up from VND1.95 trillion ($79.64 million) in 2023.

The CrownX expects to deliver net revenue within the range of VND63,000 billion to VND68 trillion, up 9% to 18% from 2023 while Masan Consumer targets net revenue to reach between VND32.5 trillion and VND36 trillion in 2024, driven mainly by Convenience Foods, Beverages, and Home Personal Care.

WinCommerce is projected to attain net revenue between VND32,500 billion and VND34,000 billion in FY2024, reflecting a YoY increase of 8% to 13%. The growth is mainly driven by accelerated LFL growth, new stores ramp-up, and adding new stores.

“WinCommerce is moving to sustainable profitability in 2024. Masan Consumer Holdings is back to a growth phase. Global FMCG platform is starting to become clear as Chin-su chili sauce is now in the top 8 on Amazon,” said Dr Nguyen Dang Quang, chairman of Masan Group.

“MEATDeli is starting to win consumers at scale. Digitalization of Vietnam’s consumer infrastructure is accelerating as WIN Membership reaches eight million members. We keep going and stick to our motto of creating value for Vietnam, consumers, shareholders, and Masaners,” he added.  

In light of the current volatile capital market, Masan’s solid cash flow generative consumer-focused businesses have been able to access the local and international debt markets on very favorable terms. The non-cyclical nature of Masan’s businesses gives management confidence in the ability to further advantageously manage the Company’s liquidity in the upcoming months.

Photo courtesy of Masan Group.
Photo courtesy of Masan Group.

Masan believes the consumer market in Vietnam to experience slight growth in 1H2024 and an accelerating recovery in 2H2024. However, amidst the uncertainty of the global economic outlook which may impact Vietnam’s path to recovery, Masan projects and plans for both a slower-than-expected market recovery scenario and an accelerated growth scenario in FY2024.

2023 net revenue up 2.7%

Masan reported 2023 net revenues up 2.7 percent to VND78.25 trillion ($3.19 billion) while gross profit increased 5.2% to VND22,121 billion). Revenues for the Q4 edged up to VND20.78 trillion ($850 million), according to its unaudited accounts for the year released on January 30.

Earnings before interest and taxes for Masan's core consumer businesses increased by 40.1 percent, mainly driven by record-breaking profitability at Masan Consumer Holdings and resilient profitability at WinCommerce despite consumer headwinds at both the macro and micro levels.

The CrownX, Masan’s integrated consumer-retail platform that consolidates WCM and MCH, recorded top-line growth of 2.6% YoY, delivering revenue of VND57,684 billion in FY2023, despite a challenging environment due to consumer’s low confidence. Revenue recorded VND15,980 billion in 4Q2023, up 3.1%.

WCM enhanced EBIT and recorded positive grocery NPAT[1] in 4Q2023, a milestone in WCM’s path towards full-year NPAT breakeven. WCM recorded revenue of VND30,054 billion in FY2023 and VND7,653 billion in 4Q2023, delivering a YoY increase of 2.3% YoY and 3.0% YoY, respectively, driven by the positive impact of new store openings, the ramp-up of the 2022 store cohort, and successful store format renovation.

In FY2023, WCM focused on finding winning formats for urban and rural consumers – WIN & WinMart+ Rural, focusing on successful opening rather than pure network expansion. As a result, WCM opened 312 new WinMart+ (“WMP”) stores including 67 new WMP in 4Q2023, concluding the year with a total of 3,633 outlets nationwide.

With strong results from pilot WIN and WinMart+ Rural concepts in 1H2023, WCM renovated 309 WIN stores and 1,100 Rural stores in 2H2023, exceeding the original plan of 250 WIN stores and 676 Rural stores. Throughout FY2023, 1,615 stores in new formats, constituting 46% of the minimart network, demonstrated improved resilience and uplift. This significant achievement provides management with confidence in the growth momentum for 2024.

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