With the investment of VND500 billion ($21.74 million) in Agriculture Nutrition Corporation (Anco), Masan MeatLife will increase its stakes to nearly 100 per cent from the previous 70 per cent.
|Masan MeatLife will pour nearly $22 million in Anco |
Masan MeatLife JSC has approved the plan to invest VND500 billion ($21.74 million) in Anco to increase the chartered capital of the company.
Established in 2003 under the joint venture model, Anco specialises in manufacturing livestock feed for animals, seafood, and poultry. In 2009, it switched to the joint-stock model, after which Masan Nutri-Science purchased 70 per cent of the stakes.
According to the latest information published by Anco, its chartered capital was raised to VND800 billion ($34.8 million) with general director Pham Trung Lam and Masan MeatLife owning nearly 100 per cent.
In 2019, Anco reported a revenue of VND1.87 trillion ($81.3 million), up 7 per cent on-year and only half of its expectations. Gross profit plunged by 79 per cent to VND53 billion ($2.3 million). As a result, the company reported a loss of VND468 billion ($20.35 million) (against a loss of VND39 billion [$1.69 million] in 2018).
The main reason for this bleak business result is the African swine fever. The revenue from livestock feed saw a near 30 per cent decrease. Income from the meat sector started rolling in from the fourth quarter of 2019 but could not offset production expenditures.
MeatLife has been planning to expand the number of MeatDeli selling points to over 3,000 this year. Masan MeatLife’s meat value chain is completed under the 3F (Feed – Farm – Food)model with 10 cattle-feed manufacturers operating at the capacity of 3 million tonnes a year. The annual output of its high-tech farm in the central province of Nghe An is 230,000 pigs, while its meat processing factory in the northern province of Ha Nam can process 1.4 million pigs.
The company’s target is to become the leading brand in cooled packaged meat in Vietnam by 2022 and occupy 10 per cent of the local market with a revenue of $1.5-3 billion. After-tax profit is targeted to reach about $200-450 milion.
This target is feasible because VinMart and VinMart + are the core base to help MeatLife complete its chain expansion and start receiving benefit from the $10 billion pork market.