Masan targets double digit growth

Saturday, Feb 23, 2019 09:40

An animal feed production line of Masan Nutri-Science, an affiliate of Masan Group Corporation. MSN targets double digit growth this year. — Photo Courtesy of Masan

Masan Group Corporation targets net revenues of VND45.2-50 trillion (US$1.9 - $2.15 billion) this year, an increase of 18-31 per cent from last year.

Its net profit after tax post-minority interest (NPAT Post - MI) is expected to reach VND5-5.5 trillion this year, up 44-58 per cent from last year and taking the profit margin to over 10 per cent.

Net revenues and NPAT Post - MI of Masan Consumer Holdings, a subsidiary, are expected to grow by 20-35 per cent and 30-35 per cent, respectively.

It plans to speed up premiumisation of seasoning products, convenience foods and beverages this year, but has said that a key risk is slower consumer off-take and continued slow momentum in beer.

Masan Nutri-Science targets an increase in net revenues of 20-30 per cent, with revenues from fresh meat expected to contribute nearly 10 per cent. The feed business is expected to grow by 10-15 per cent.

It plans to invest VND30-70 billion ($1.29- 3.01 million) from internal resources to scale up meat distribution.

But a key potential risk is a pig disease outbreak, which would impact feed sales growth and slower consumer adaptation to chilled fresh meat.

Masan Resource’s net revenues are expected to grow by 12-22 per cent driven by increased sales volumes. Its profit is expected to go up by VND700 billion to VND1 trillion.

MSN Group’s net profit after tax post-minority interest was VND4.9 trillion last year, including VND3.47 trillion ($151.2 million) from its core business sectors, a year-on-year increase of 57.1 per cent.

It successfully launched its fresh meat brand “MEATDeli” last year as it seeks to gradually make over Masan Nutri-Science into an FMCG business.

MSN Group chairman and CEO Nguyen Dang Quang said: “We have completed the first year of the five-year growth plan and this is just the beginning. Masan Consumer will continue its strategy of maximising product portfolio through new products that bring added value to achieve revenue growth of 20 per cent plus each year.

“With the launch of MEATDeli, Masan Nutri-Science will become a branded FMCG business by converting the $10.2 billion pork market through setting the new standard for safe fresh and processed meat products.” — VNS

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