Masan Group Corporation remained resilient amid a challenging business environment, with its net revenues rising by 2.8 per cent to VND18.7 trillion (US$796.9 million) in the first quarter, according to its unaudited results released on April 28.

Net profit was dragged down by higher interest expenses of VND369 billion ($15.7 million).

The management will focus on improving the bottom line across the business portfolio, and expects H2 tailwinds for the banking sector and declining interest rates, which will enhance overall profitability.

The CrownX (TCX), Masan’s integrated consumer-retail platform that consolidates WinCommerce (WCM) and Masan Consumer Holdings (MCH), recorded a slight top-line decline amid the weakened consumer sentiment, delivering revenues of VND13.3 trillion ($566.9 million), down 1.1 per cent year-on-year.

WCM’s net revenues were VND7.3 trillion ($311.1 million), up 0.5 per cent.

WCM opened 55 new WinMart+ and one new WinMart stores during the quarter, taking the total number of minimarts and supermarkets to 3,442.

MCH increased its top line slightly on a like-for-like basis, which excludes processed meats.

Due to the transfer of the processed meats business to Masan MeatLife (MML), MCH’s net revenues decreased by 2.8 per cent to VND6.2 trillion ($264.2 million).

On a like-for-like basis, which excludes revenues from processed meats, net revenues increased by 2.6 per cent. Seasonings, HPC (home and personal care) and coffee recorded 12.6 per cent, 26.6 per cent and 21.9 per cent year-on-year growth rates.

The increase in sales in these categories was offset by declines of 7 per cent, 1.2 per cent, and 12.5 per cent in convenience foods, beverages and beer.

MCH has low inventories across categories, achieving VND1.3 trillion as of the end of Q1 compared to VND2 trillion a year earlier.

Phuc Long Heritage (PLH) posted 6.2 per cent year-on-year revenue growth.

Flagship revenues increased by 11.8 per cent to VND311 billion ($13.2 million), but EBITDA declined due to lower revenues. It is testing the “Hub-and-spokes” model for kiosk and achieving some positive initial results.

MML revenues increased by 71.8 per cent to VND1.6 trillion ($68.1 million) thanks to a higher top line across all segments and the transfer of processed meat business from MCH.

On a LFL basis, which includes processed meats in 2022, revenue increased by 25.6 per cent thanks to higher sales across all segments, especially processed meats.

Masan High-Tech Materials’ revenues decreased by 3.6 per cent due to the negative impacts of lower feed grades on NPMC production volumes and H.C.Starck’s higher base effect, which saw customers building inventory in early 2022 post-COVID.

Tungsten prices in Q1 averaged $335/mtu, 2 per cent higher than a year earlier. Copper revenues increased thanks to the sales of 6,000 tonnes to domestic customers.

Techcombank, Masan’s associated company, contributed VND961 billion ($40.9 million) in EBITDA in Q1, representing a decline of 18.4 per cent year-on-year. — VNS