Vietnam’s FMCG company wants to pay cash dividends after paying the cash dividend ratio of 268 per cent for 2023

Photo: Masan Consumer

Between July 2023 to July 2024, Masan Consumer made two cash dividend payments of more than VND7.1 trillion ($287.8 million) for 2023, with a total ratio of 100 per cent. This latest payment, due on October 4, brings the total ratio to 268 per cent.

Masan Consumer recently sought shareholders’ approval to pay 2024 dividends using the company's retained earnings, with a maximum dividend advance of 100 per cent. This means one share will receive a maximum 2024 dividend advance of VND10,000 ($0.41).

Masan Consumer's starting point and core product line is seasonings. As of present, Masan Consumer has eight main consumer goods industries in Vietnam. The company owns five brands with over VND2 trillion ($81 million) in revenue.

Masan Consumer's flagship brands include Chin-Su, Nam Ngu, Tam Thai Tu, Omachi, Kokomi, Vinacafé, Wake-Up Coffee, Wake-Up 247, Joins, and Chante.

Besides heavy investments in marketing and promotions, Masan Consumer pays special attention to research and development to roll out new products at a rapid pace.

Photo: Masan Consumer

According to Euromonitor, sales in Vietnam's seasoning industry, including fish sauce, soy sauce, and chilli sauce, recorded a compound annual growth rate (CAGR) of 5 per cent from 2018-2023 and a CAGR of 4 per cent due to an increase in average prices. However, Masan Consumer's seasoning sales recorded a CAGR of 8 per cent thanks to its strategy of innovation and product quality improvement. This market is forecast to grow by 7-9 per cent from 2024-2026 and 6 per cent from 2027-2028.

In the convenience food industry, instant noodles are one of the largest segments, worth $1.3 billion. Masan Consumer increased its market share from 19 per cent in 2018 to 21 per cent in 2023. Despite the large market size, fierce competition has prompted Masan Consumer to constantly improve, upgrade, and launch new product lines suitable for multiple segments and customer needs.

The beverage industry, including energy drinks and bottled drinks, is another bright spot for Masan Consumer. According to Euromonitor, Vietnam's energy drinks market reached $750 million in 2023. Of which, Wake-up 247 accounted for 10.3 per cent of the market share. This is also a pioneering brand in Masan Consumer's caffeine-containing energy drinks category. With the current market share, the company still has ample room for growth.

In 2020, Masan Consumer acquired 52 per cent of Net Detergent JSC, making its official entrance into the $3.9 billion home and personal care (HPC) market. The market was dominated by foreign brands for many years. In 2023, Masan Consumer announced that HPC industry sales had reached VND1.8 trillion ($73 million), an increase of 18.3 per cent compared to 2022. HPC products are currently mainly sold through the modern retail channel WinCommerce, which is the largest distribution system in the country. This move will help increase brand awareness of Masan Consumer products and improve sales.

Double-digit growth

From 2017 to 2023, Masan Consumer grew a rate of 2.2 times faster the market. According to a recent report by HSBC, Masan Consumer has high profit margins and stable revenue growth. The company significantly outperforms its peers in the fast-moving consumer goods and packaged food sectors in the region, with a CAGR of 15.4 per cent.

According to the report, Masan Consumer continued to record growth momentum in 2023 with positive business results in the second quarter of 2024. The company posted revenue growth of 14 per cent and maintained a high gross profit margin of 46.3 per cent.

Moving into the second half of 2024, Masan Consumer plans to accelerate revenue growth by implementing strategic initiatives and premiumisation, while rotating underperforming units to optimise profits. The company will also continue to boost its “Go Global” strategy to promote Vietnamese flavours to 8 billion global consumers.

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