Photo: Masan
The Group’s profit after taxes before minority interests fell nearly 65.8% to VND1,353 billion in the reviewed period. Masan’s consolidated cash balance, including cash and cash equivalents, was VND14,258 billion at the end of the third quarter of 2023.
In the first quarter, the Vietnamese conglomerate recorded 486 billion in after-tax profit, down 42.3% from a year earlier. Third-quarter revenue increased 3.2% to 20,155 billion.
The CrownX’s recorded revenue of VND41,704 billion in the period and VND14,869 billion in the third quarter, up 2.4% YoY and 1.2% YoY, respectively. The company posted EBITDA of VND5,622 billion in 9M2023 and VND2,116 billion in 3Q2023, up 11.4% YoY and 13.6% YoY, respectively.
“In a time of such global sensitivity, uncertainty, and calamity, our mission to serve consumers their basic, daily life necessities has never been more important. Our DNA of doing well by doing good has guided us across each challenging period. It is no different this time around” said Dr. Nguyen Dang Quang, Chairman of Masan Group.
Masan’s consumer businesses, WinCommerce, Masan Consumer Holdings, Masan MEATLife, and Phuc Long Heritage, grew its combined operating profits by 45.5% YoY in 9M2023 and 47.3% YoY in 3Q2023.
WinCommerce reached EBIT breakeven for the first time post Covid-19. Net revenue increased by 2.1% YoY in 9M2023 and 3.3% YoY in 3Q2023 thanks to new store openings. It was more cautious about new store openings with 245 new minimart locations and 2 new supermarket outlets opened in 9M2023, ending September 2023 with 3,586 stores nationwide for both minimarts and supermarkets.
Masan Consumer Holdings increased topline by 10.5% YoY in 9M2023. On a LFL basis, MCH net revenue registered 10.5% YoY growth to VND20,376 billion in 9M2023. MCH was able to deliver gross margin of 44.3% in 9M2023, an increase of 430 bps from 40.0% in 9M2022 (LFL).
In 3Q2023, gross margin reached an all-time high of 45.6% resulting in ~26% EBITDA margin for this quarter. This exceptional gross margin is attributable to several factors, including sustained higher price due to its brand powers, higher margin product mix, ability to secure low raw material costs, and optimized demand & supply planning to improve manufacturing conversion cost.
Masan MEATLife’s revenue increased by 61.1% YoY in 9M2023 and 47.5% YoY in 3Q2023, driven by stronger sales across almost all segments, notably processed meat with a remarkable 35.9% YoY growth in 9M2023 and 23.1% YoY growth in 3Q2023.
Meanwhile, in 3Q2023, gross margin was 18.6%, up 260 bps from 16.0% in 3Q2022. Stronger YoY margin in 3Q2023 compared to 9M2023 was driven by significant QoQ improvement in gross margins of farm pig and farm chicken in 3Q2023 as a result of higher live hog and chicken broiler price compared to 1H2023.
Phuc Long Heritage improved profitability by rationalizing kiosk footprints. EBITDA margin improved to 20.8% in 3Q2023 compared to 17.0% in 2Q2023 due to the rationalization of the kiosk footprints (PLH stores inside WCM). In 3Q202, PLH opened 6 new locations. PLH stores outside WCM experienced slight growth in revenue, reaching VND876 billion in 9M2023.
The announcement of Bain Capital’s equity investment into Masan Group, which can be upsized to USD500 million, will serve to strengthen the Company’s balance sheet as most of the proceeds will be used for deleveraging. MSN targets Net Debt to EBITDA of ≤ 3.5x.
Masan Group Corporation believes in doing well by doing good. The Company’s mission is to provide better products and services to the 100 million people of Vietnam, so that they can pay less for their daily essentials. Masan aims to achieve this by driving productivity with technological innovations, trusted brands, and focusing on fewer but bigger opportunities that impact the most lives.
Masan Group’s member companies and associates are industry leaders in branded fast moving consumer goods, branded meat, modern retail, F&B retail, financial services, telecommunications, and value-add chemical processing, altogether representing segments of Vietnam’s economy that are experiencing the most transformational growth.
