Customers shop at a WinMart supermarket. — Photo courtesy of Masan
Masan Group Corporation (HOSE: MSN) earned revenues of VNĐ21.5 trillion (US$843.5 million) in the third quarter of the year, a year-on-year increase of 6.6 per cent, supported by sustained topline momentum from consumer-retail businesses, according to its unaudited management accounts released on October 24.
Net profit after tax post minority interest (NPAT Post-MI) increased by 1,349 per cent to VNĐ701 billion ($27.5 million), driven by strong profitability momentum across the consumer-retail businesses and a VNĐ788 billion decline in debt-incurring net financial expenses and absence of non-cash deduction as a result of forex volatility.
Masan has hedged 100 per cent of its long-term USD-loan since the beginning of the year, securing its profit and loss account against negative impacts of forex movements.
In the quarter its consumer-retail businesses, Masan Consumer Corporation (MCH), WinCommerce (WCM), Masan MEATLife (MML), and Phúc Long Heritage (PLH), maintained growth, and were supported by non-core activities’ profit jump.
MCH saw revenues grow 10.4 per cent to nearly VNĐ8 trillion, driven by premiumisation of convenience foods (+11.0 per cent) and seasonings (+6.7 per cent), and innovations in beverages (+18.8 per cent) and home & personal care (+12.4 per cent).
It maintained a relatively high gross margin of 46.8 per cent, 20 basis points (bps) higher than in Q3, 2023.
Its NPAT Post-MI margin was 25.9 per cent, a 90bps increase.
WCM reported 9.1 per cent YoY revenue growth across the whole network to VNĐ8.6 trillion, mainly driven by new store formats of WIN (catering to urban shoppers) and Winmart+ Rural (catering to rural shoppers), with 12.5 per cent and 11.5 per cent like-for-like growth compared to 8 per cent growth in the traditional format.
WCM saw positive NPAT – for the first time since COVID-19 -- in Q3 of VNĐ20 billion, providing a clear pathway to sustainable and increasing profitability.
MML saw a VNĐ43 billion rise in EBIT and VNĐ105 billion rise in NPAT Pre-MI in Q3, a third consecutive quarter of positive EBIT and first quarter of positive NPAT Pre-MI (VNĐ20 billion) since 2023, driven by an increased sales mix in processed meats and higher chicken and pork market prices.
PLH’s net revenues grew by 12.8 per cent to VNĐ425 billion, mainly driven by contributions by 21 new stores (all outside of WCM) that were opened during the quarter.
PLH has 174 stores nationwide now.
Dr. Nguyễn Đăng Quang, chairman of Masan Group, said: “The most significant shareholder value creation driver is WinCommerce and Masan MEATLife achieving positive NPAT in Q3, 2024, which will accelerate as we continue to execute our medium-term strategy. Masan Consumer continues to deliver double-digit top- and bottom-line growth and is entering the next phase of growth as premiumisation, innovations and out-of-home consumption pick up.
“With this momentum, I am confident we will approach our high-case NPAT target of VNĐ2 trillion, and are now focused on synergising our entire consumer-retail platform to deliver consolidated double-digit top- and bottom-line growth in 2025.”
For the first nine months of the year Masan’s NPAT Pre-MI and NPAT Post-MI were VNĐ2.7 trillion and VNĐ1.3 trillion, or 130.8 per cent of the base-case full-year NPAT guidance approved by shareholders at the beginning of the year.
Management will continue to improve the bottom line in Q4 with the expectation of approaching the full-year high-case guidance. — VNS