Masan Q2 earnings rise by 5 times from last year

Customers shop at WinMart Phú Mỹ Hưng in District 7. — Photo courtesy of Masan

HCM CITY — Masan Group Corporation (HOSE: MSN) has released its unaudited management accounts for the second quarter of 2024, with net revenues reached VNĐ20.13 trillion (US$794.1 million), a 8.2 per cent increase from Q2 last year, driven by a robust performance in its core consumer-retail businesses.

Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) topped VNĐ3.82 trillion ($150.4 million), a year-on-year increase of 20.9 per cent.

Net profit after tax post minority interest (NPAT Post-MI) was VNĐ503 billion ($19.8 million), up 378.6 per cent year-on-year and surpassing fiscal year 2023 NPAT Post-MI, driven by improvements across consumer – retail businesses, the recovery of non-core/non-operating activities in Q2, and a VNĐ138 billion reduction in debt-incurring net financial expenses.

Masan said its consumer-retail businesses, referring to Masan Consumer Corporation (MSC), WinCommerce (WCM), Masan MEATLife (MML), and Phúc Long Heritage (PLH) maintained growth momentum and were supported by a rise in non-core business units’ profits.

MSC saw 14 per cent year-on-year revenue growth to over VNĐ7.38 trillion driven by convenience foods (+20.7 per cent), beverages (+17.6 per cent) and coffee (+16.0 per cent). It maintained its gross margin at a relatively high level of 46.3 per cent.

NPAT Pre-MI margin was 24.2 per cent.

WCM reported 9.2 per cent growth in revenues to VNĐ7.84 trillion across the network, mainly driven by new store formats of WIN (catering to urban shoppers) and Winmart+ Rural (catering to rural shoppers), which saw 6.3 per cent and 10.7 per cent growth.

WCM was NPAT-positive in June 2024, providing a clear pathway to sustainable profitability.

MML delivered a VNĐ105 billion year-on-year uplift in EBIT in Q2, a second consecutive quarter in which it has been EBIT-positive, driven by increased sales mix from processed meat while benefiting from higher chicken and pork market prices and declining feed costs.

PLH’s net revenues grew by 5.3 per cent to VNĐ391 billion, mainly due to contributions from 15 new stores opened since Q2 last year.

Management continued to maintain a prudent approach with four new stores outside of WCM added in Q2 to the network, which now stands at 163 stores nationwide.

Guests experience the WiN store system with the message “All you need.” — Photo courtesy of Masan

MHT’s EBIT improved by VNĐ193 billion, 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 MHT is expected to book a one-time gain of approximately $40 million in the second half of 2024 and benefit from long-term NPAT increase of $20-30 million.

TCB, Masan’s associated company, contributed nearly VNĐ1.24 trillion to EBITDA in Q2, representing 38.5 per cent growth.

Masan’s cash and cash equivalent increased to VNĐ21.98 trillion as of Q2, compared to VNĐ16.9 trillion as of Q4, 2023, as a result of improvement in free cash flows and cash injection from corporate funding activities.

Net debt / LTM (last 12 months) EBITDA declined to 3.3x, compared to 3.9x as of Q3, 2023, achieving the target of pushing net debt to EBITDA to below 3.5x.

LTM free cash flow increased to VNĐ7.4 trillion as of Q2, up 71 per cent year-on-year.

Cumulatively, Masan achieved VNĐ1.42 trillion in NPAT Pre-MI and VNĐ607 billion in NPAT Post-MI in in H1, or over 60 per cent of the base case full-year NPAT guidance as approved by shareholders at the beginning of the year.

“Masan Consumer continues to deliver double-digit top line 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 EBIT for the second straight quarter,” Dr. Nguyen Dang Quang, chairman of Masan Group, said.

“We are confident of delivering our 2024 profit guidance and growing profitably in the short and medium terms to deliver superior shareholder returns.” — VNS