WinCommerce posts net profit in third quarter

According to Masan Group’s third quarter financial statement, the company posted net revenue of VND21.5 trillion ($845.3 million), a slight increase from last year. Chairman Nguyen Dang Quang highlighted this quarter’s results, stating, “The most significant shareholder value creation driver is WinCommerce and Masan MEATLife achieving positive net profit after tax (NPAT) in Q3. This will accelerate as we continue to execute our medium-term strategy."

He added that with Masan Consumer’s double-digit growth and a focus on premiumisation, innovation, and out-of-home consumption, Masan is well-positioned to meet its high-case NPAT target of VND2 trillion ($79 million) and is working towards consolidated double-digit growth for 2025.

WinCommerce reported a 9.1 per cent on-year revenue growth in the third quarter, generating $338.12 million across its retail network. For the first time since the pandemic, the company achieved positive net profit after tax of $790,514.

By the end of September 2024, WinCommerce operated 3,733 stores, with a net increase of 60 stores since the second quarter. Notably, WinMart supermarkets achieved positive earnings before interest and taxes, supported by improvements in inventory shrinkage.

Strategies driving profit momentum

WinCommerce has achieved four consecutive months of profitability by adopting effective business strategies, including innovative store models and tailored product offerings that cater to diverse local needs. The company focuses on a fast-moving consumer goods approach, leveraging Masan's expertise to enhance operational efficiency.

In a bid to boost customer loyalty, WinCommerce introduced the WIN Membership programme nationwide in early 2023, following a pilot in late 2022. Offering exclusive discounts on essentials, fresh products, and weekly promotions, the membership has drawn over 10 million customers, with a goal of reaching 30 million within five years. Through WIN Membership, customers enjoy discounts of up to 20 per cent on select products, including WinEco vegetables and MEATDeli chilled meats.

WinCommerce’s “good price” strategy, in collaboration with trusted suppliers, ensures competitive pricing across its network. By sourcing products from Masan Consumer and distributing them through WinCommerce, the chain maintains prices that align with or beat market levels.

To further enhance profitability, WinCommerce optimises logistics and reduces product loss through AI and machine learning within its supply chain management system, reducing logistics costs by up to 11 per cent.

Masan’s board of directors is focused on driving positive business results into the fourth quarter, emphasising growth in the retail consumer segment. WinCommerce is targeting positive net profit, consistent like-for-like growth, and a quarterly target of 100 new store openings. The company also plans to expand its reach in rural areas using the successful WinMart+ Rural model while enhancing the WIN Membership platform to deliver value for Masan’s brands and partner networks.

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".

How WinCommerce modernises grocery retail in Vietnam WinCommerce, Masan Group's retail arm, is modernising grocery retail in Vietnam with its "New Commerce" consumer model.

WinCommerce following in the steps of India’s largest retailer 'New Retail' is fast becoming a buzzword in Vietnam and internationally, as it is believed to be a great leap forward for the retail industry, with many companies already announcing their shift towards the model.