A Winmart supermarket. (Photo: courtesy of Masan) According to its detailed analysis on its unaudited management accounts for thefourth quarter and financial year 2021 on Wednesday, revenue contribution fromconsumer businesses (excluding feed and Masan High-Tech Materials) was 68 percentin 2021 and is projected to improve to 85 percent in 2022.
Core NPAT Pre-MI (excluding one-time gains/losses and feed segment) is expectedto be within the range of 5 trillion VND and 7 trillion VND, an increase of 32 percentto 84 percent compared to 3.8 trillion VND in 2021.
In 2021, Masan reported consolidated net revenue of 88.6 trillion VND, a riseof 14.8 percent year-on-year. Net revenue in the last quarter rose 10 per yearto 23.8 trillion VND.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) grew by58.1 percent year-on-year to nearly 16.4 trillion VND, primarily driven by theCrownX (TCX) increasing EBITDA by 72.9 percent.
Reported core net profit after tax post-minority interest (NPAT Post-MI) grewby 593.9 percent to 8.6 billion VND compared to 1.23 trillion VND in 2020.
“We have solidified our offline mini-mall concept and are ready to expandnationwide, but the next wave is to transform The CrownX into a consumer-techplatform. 2022 will be the year we digitalise our platform into an integratedsystem from manufacturing, logistics, distribution all the way up to 100million consumers,” said chairman Nguyen Dang Quang.
Quang said this will drive 10 percent operational cost efficiencies and, mostimportantly, combine the company’s traditional consumer insights with AI andmachine learning insights to better serve consumers products and services theytruly desire.
“By doing so, we envision a consumer-tech platform that accelerates our growthpotential and delivers strong profits,” he said.
Despite COVID-19 adversely impacting store expansion, innovation launches andsupply chain/production operations pushed net revenue of the CrownX (TCX),Masan’s integrated consumer-retail platform that consolidates WinCommerce (WCM)and Masan Consumer Holdings (MCH) up 6.9 percent last year to reach 58 trillionVND, the report said.
Net revenue was up 12.6 percent in the last quarter, signalling growth momentumheading into 2022.
Separately, WCM delivered 30.9 trillion VND in net revenuelast year, down 0.3 percent compared to last year despite the reduced number ofstore locations after 2020’s network rationalisation, starting 2021 with 668fewer locations than at the start of 2020.
While COVID-19 limited store expansions, WCM was able to open 387 net newmini-stores in 2021, giving confidence in store expansion plans and revenuegrowth for 2022.
Meanwhile, MCH’s net revenue grew by 20 percent year-on-year in 2021 and 32.3year-on-year in the final quarter, respectively, to reach 28.8 trillion VND and10.1 trillion VND.
This year, the Crown X expects to deliver net revenue within the range of 68trillion VND and 76 trillion VND, up 17 percent to 31 percent compared to 2021.Of which, WCM’s net revenue is expected to be within the range of 38 trillionVND and 40 trillion VND, up 23 percent to 29 percent year-on-year, while MCH’snet revenue is expected to reach between 34 trillion VND and 40 trillion VND,up 18 to 39 percent versus 2021.
Masan MEATLife’s (MML) meat segment achieved 4.5 trillion VND in net revenue in2021, up 88.6 percent compared to 2.4 trillion VND in FY2020. Current capacityutilisation of pork processing plants is 20 percent. At 26 percent utilisation,the segment becomes profitable, which is expected to occur this year.
Branded pork expects to deliver net revenue between 5 trillion VND and 6.5trillion VND, up 11 percent to 45 percent year-on-year (excluding feedsegment).
Meanwhile, driven by strong demand and pricing for its products, MasanHigh-Tech Materials (MHT) delivered record net revenue of 13.6 trillion VND in2021, EBITDA of 3.1 trillion VND, and NPAT Post-MI of 196 billion VND. MHT’sresults validate its decision to acquire H.C. Starck’s global tungsten businessand efforts to become a mid-stream hi-tech chemicals player.
This year, MHT expects to deliver net revenue between 14.5 trillion VND and 15trillion VND, up 7 percent to 11 percent on the back of continued improvementto tungsten market fundamentals in 2022 and strength in commodity markets ingeneral.
Regarding the company's new investments this year, Masan is planning to raiseits stake in Phuc Long coffee and tea chains from the current 31 percentacquired in January this year to 51 percent. At a purchase price of 110 millionUSD in January, the implied equity valuation of Phuc Long was 355 million USD.In 2022, Phuc Long's revenue is expected to reach between 2.5 trillion VND and 3trillion VND./.
VNA
