Revenues of Masan Group Corporation double in the first quarter of 2020, with its retail platform well on the way to breaking even (Photo courtesy of Masan) Hanoi (VNA) - Masan Group Corporation (HOSE: MSN) has reported consolidated netrevenues of 17.632 trillion VND (753.08 million USD) in the first quarter offinancial year 2020, a year-on-year increase of 116.1 percent.
This was primarily due high double-digit growth at Masan Consumer Holdings(MCH) and consolidation of VinCommerce the company acquired recently.
Masan reported its first quarter results on April 29.
Of its subsidiaries, MCH achieved net revenue growth rate of 22.4 percent andearnings before interest, taxes, depreciation, and amortisation (EBITDA) growthof 5.3 percent.
This was driven by 59.7 percent growth in convenience foods and 300 percentgrowth in processed meats and 75 percent growth in sales through moderndistribution channels.
Profitability grew less than the topline since the company investedsignificantly on innovation and strategic marketing campaigns to maintainsimilar growth rates for the remainder of the year.
VinCommerce (VCM) delivered revenue growth of 40.3 percent over the same periodlast year to 8.709 trillion VND (372.6 million USD).
Its growth was driven by strong double-digit same store sales growth in Hanoi,tier 1 and tier 2 cities and a ramp-up of 27 VinMart supermarkets and 1,192VinMart minimarkets opened in 2019.
Masan MEATLife (MML)’s meat business continued to surge, with net revenuesrising by nearly 85 percent quarter-on-quarter to 453 billion VND (19.4 millionUSD) in Q1.
The integrated meat business (feed, farm, and meat) achieved breakeven EBITDAin Q1. MML will focus on developing a productive and sustainable supply chainto deliver sustainable profits as volume scales up over the next 18 months.
Masan Resources experienced a 10.4 percent decline in net revenues as mineralprices remained low due to the COVID-19 pandemic.
But it expects earnings and cash generation to rise from Q2 onwards due torealisation of current copper inventory and synergies from impending closure ofthe acquisition of H.C. Starck’s global tungsten business.
MSN’s cash earnings, or cash net profit after tax post-minority interest (NPATPost-MI), are expected to accelerate in the second half of 2020 with VCM’sprofitability forecast to further improve and MCH realising returns onstrategic investments made in the first quarter.
Masan expects double-digit growth in consolidated net revenue for 2020, withprofitability to catch up in the second half of the year. As a majority ofMSN’s businesses are focused on basic needs and consumer staples, the companydoes not expect to be materially impacted by COVID-19.
Among its subsidiaries, MCH is forecast to deliver over 15 percent revenuegrowth and double-digit profit growth in 2020. To ensure the growth, it willcontinue to focus on premiumisation and margin improvement in granules to thelevels of its overall seasonings portfolio.
As for convenience foods and processed meat, MCH will focus on premiumisationof its existing portfolio coupled with making the transition to a full-mealsolution provider.
The management expects consumers to increasingly switch to ready-to-eatpackaged products from dining out post-COVID-19.
In the beverages segment, it will round out its energy drinks portfolio andgain market share with breakthrough innovations and products.
In the home and personal care (HPC) segment, it has successfully integrated NETDetergent Joint Stock Company (NETCO) and leveraged MCH’s points of sale toincrease availability of NETCO’s brands and products nation-wide as a firststep. The second step will be to enter other attractive sub-categories in theHPC segment, which will most likely occur in the second half of the year.
In MML’s meat business and VINECO, VCM’s fresh vegetables and fruit productionarm, it is focused on building the leading safe and fresh produce platform in Vietnam./.
This was primarily due high double-digit growth at Masan Consumer Holdings(MCH) and consolidation of VinCommerce the company acquired recently.
Masan reported its first quarter results on April 29.
Of its subsidiaries, MCH achieved net revenue growth rate of 22.4 percent andearnings before interest, taxes, depreciation, and amortisation (EBITDA) growthof 5.3 percent.
This was driven by 59.7 percent growth in convenience foods and 300 percentgrowth in processed meats and 75 percent growth in sales through moderndistribution channels.
Profitability grew less than the topline since the company investedsignificantly on innovation and strategic marketing campaigns to maintainsimilar growth rates for the remainder of the year.
VinCommerce (VCM) delivered revenue growth of 40.3 percent over the same periodlast year to 8.709 trillion VND (372.6 million USD).
Its growth was driven by strong double-digit same store sales growth in Hanoi,tier 1 and tier 2 cities and a ramp-up of 27 VinMart supermarkets and 1,192VinMart minimarkets opened in 2019.
Masan MEATLife (MML)’s meat business continued to surge, with net revenuesrising by nearly 85 percent quarter-on-quarter to 453 billion VND (19.4 millionUSD) in Q1.
The integrated meat business (feed, farm, and meat) achieved breakeven EBITDAin Q1. MML will focus on developing a productive and sustainable supply chainto deliver sustainable profits as volume scales up over the next 18 months.
Masan Resources experienced a 10.4 percent decline in net revenues as mineralprices remained low due to the COVID-19 pandemic.
But it expects earnings and cash generation to rise from Q2 onwards due torealisation of current copper inventory and synergies from impending closure ofthe acquisition of H.C. Starck’s global tungsten business.
MSN’s cash earnings, or cash net profit after tax post-minority interest (NPATPost-MI), are expected to accelerate in the second half of 2020 with VCM’sprofitability forecast to further improve and MCH realising returns onstrategic investments made in the first quarter.
Masan expects double-digit growth in consolidated net revenue for 2020, withprofitability to catch up in the second half of the year. As a majority ofMSN’s businesses are focused on basic needs and consumer staples, the companydoes not expect to be materially impacted by COVID-19.
Among its subsidiaries, MCH is forecast to deliver over 15 percent revenuegrowth and double-digit profit growth in 2020. To ensure the growth, it willcontinue to focus on premiumisation and margin improvement in granules to thelevels of its overall seasonings portfolio.
As for convenience foods and processed meat, MCH will focus on premiumisationof its existing portfolio coupled with making the transition to a full-mealsolution provider.
The management expects consumers to increasingly switch to ready-to-eatpackaged products from dining out post-COVID-19.
In the beverages segment, it will round out its energy drinks portfolio andgain market share with breakthrough innovations and products.
In the home and personal care (HPC) segment, it has successfully integrated NETDetergent Joint Stock Company (NETCO) and leveraged MCH’s points of sale toincrease availability of NETCO’s brands and products nation-wide as a firststep. The second step will be to enter other attractive sub-categories in theHPC segment, which will most likely occur in the second half of the year.
In MML’s meat business and VINECO, VCM’s fresh vegetables and fruit productionarm, it is focused on building the leading safe and fresh produce platform in Vietnam./.
VNA
