Masan’s second quarter earnings surpass 2023 full-year

In the second quarter, Masan Group’s net revenue reached VND20.13 trillion ($795.2 million), an 8.2 per cent increase from $735.14 million in H1/2023, driven by robust topline performance in core consumer-retail businesses. In the first half of the year, Masan Group's revenue and profit grew strongly, with the company earning $8.45 million per day.

Masan Consumer Corporation (MSC) delivered 14 per cent on-year revenue growth in H1/2024 to VND7.4 $292.32 million, driven by convenience foods (up 20.7 per cent on-year), beverages (up 17.6 per cent on-year), and coffee (up 16 per cent on-year).

Masan Consumer maintained gross margin at a relatively high level of 46.3 per cent, driven by power brands and premium acceleration and commanding pricing power in the context of lower raw material costs. Net profit after tax post minority interest (NPAT Post-MI) margin recorded 24.2 per cent.

WinCommerce (WCM) reported 9.2 per cent on-year revenue growth in 2Q/2024 to reach revenue of $309.7 million across the whole network, mainly driven by new store formats of WIN (catering to urban shoppers) and Winmart+ Rural (catering to rural shoppers), with 6.3 per cent and 10.7 per cent like-for-like (LFL) on-year growth, respectively. LFL growth accelerated to 6.8 per cent in 2Q/2024 and to 9.7 per cent in June, primarily driven by an increase in traffic. WinCommerce reported NPAT-positive in June 2024, providing a clear pathway to sustainable profitability.

As of June 2024, WinCommerce operated 3,673 WinCommerce stores, a net opening of 40 new stores since December 2023 as management exercised prudence amid uncertainty in the operating environment. WinCommerce expects to accelerate store openings in 2H/2024.

In 2Q/2024, WinCommerce recorded $6.79 million in earnings before interest, taxes, depreciation, and amortisation (EBITDA), up 11.1 per cent on-year. Excluding the one-off profit from financial product distribution pilot in 2023, EBITDA increased by 33 per cent on-year.

Masan MEATLife delivered $4.15 million on-year uplift in earnings before interest and taxes in 2Q/2024, reporting the second consecutive quarter of positive earnings, driven by increased sales mix from processed meat while benefiting from higher chicken and pork market prices and declining feed costs.

Masan MEATLife continues its mission to revolutionise the under-developed Vietnamese processed meat market with tasty, healthy, high quality, non-additive products, with the two Love Brands Ponnie and Heo Cao Boi having captured about half of the respective market share in the sterilised sausage market.

Phuc Long Heritage (PLH)’s net revenue grew by 5.3 per cent on-year to $15.45 million in 2Q/2024, mainly driven by contribution from 15 new stores opened since 2Q/2023. Management continued to maintain a prudent approach with four new stores outside WinCommerce added to the network in 2Q/2024, now standing at 163 stores nationwide. LFL daily sales of Phuc Long Heritage stores outside WinCommerce increased by 2.4 per cent from the trough in 4Q/2023, signalling recovering domestic demand for food services.

Masan High-Tech (MHT) Materials earnings improved by $7.62 million, supported by increasing APT and copper prices. The sale of H.C. Starck Holding GmbH to Mitsubishi Materials Corporation for an equity purchase price of $134.5 million is expected to close before year-end 2024, upon which Masan High-Tech Materials is expected to book a one-time profit gain of approximately $40 million in the second half of 2024 and benefits from long-term NPAT uplift of 20-30 million.

Transaction proceeds will be used to reduce MHT’s outstanding debt balance, whilst the deconsolidation of HCS also means MHT is relieved from HCS’s pension liabilities of approximately $190 million as of 2Q/2024.

Techcombank, Masan’s associated company, contributed $48.9 million in EBITDA in 2Q/2024, representing 38.5 per cent on-year growth.

In 2Q/2024, EBITDA reached VND3.82 trillion in 2Q/2024, increasing by 20.9 per cent on-year. NPAT Post-MI of $19.87 in 2Q/2024 is up 378.6 per cent on-year, surpassing FY2023 NPAT Post-MI $16.55 million, driven by improvements across consumer – retail businesses, the recovery of non-core/non-operating activities in 2Q/2023, and $5.45 million lower in debt-incurring net financial expenses.

“Masan Consumer continues to deliver double-digit top and bottom-line growth, while our other consumer platforms start to reach sustainable profitability levels – WinCommerce delivered profit in June and Masan MEATLife achieved positive earnings for the second straight quarter. We are confident in delivering our 2024 profit guidance and growing profitably in the short and medium term to deliver superior shareholder returns," said Nguyen Dang Quang, chairman of Masan Group.

Masan eyes global expansion, WinCommerce to reach 4,000 stores by 2024 Masan Group Corporation, along with its publicly listed affiliates Masan Consumer and Masan MEATLife, convened their 2024 AGM in Ho Chi Minh City on April 26, projecting a unified vision titled "Consumer of Things".

Mitsubishi Materials Corporation spends $134.5 million acquiring H.C. Starck Mitsubishi Materials Corporation will acquire 100 per cent of H.C. Starck Holding (Germany) GmbH from Masan High-Tech Materials Group for an equity purchase price of $134.5 million.

Masan Group honoured in Fortune’s Southeast Asia 500 rankings Masan Group has made its way into Fortune’s Southeast Asia 500 rankings for 2024 thanks to its impressive business performance and strategy.