Masan generates $3.19 billion revenues, targets doubling of profits in 2024

 

Customers shop at a WinMart supermarket belonging to Masan Group. Masan targets doubling of profits in 2024. — Photo courtesy of Masan Group.

HCM CITY — Masan’s net revenues for fiscal year 2023 were up 2.7 per cent at VNĐ78.25 trillion (US$3.2 billion).

Revenues for the Q4 edged up to VNĐ20.78 trillion ($850 million), according to its unaudited accounts for the year released on January 30.

Its free cash flows rose to VNĐ7.45 trillion last year, a significant increase from the VNĐ887 billion it reported in 2022.

Earnings before interest and taxes (EBIT) for Masan’s core consumer businesses increased by 40.1 per cent in 2023, mainly driven by record-breaking profitability at Masan Consumer Holdings (MCH) and resilient profitability at WinCommerce (WCM) despite consumer headwinds at both the macro and micro levels.

CrownX (TCX), Masan’s integrated consumer-retail platform that consolidates WCM and MCH, recorded top-line growth of 2.6 per cent YoY, delivering revenues of VNĐ57.68 trillion despite a challenging environment due to low consumer confidence.

WCM recorded revenues of VNĐ30 trillion in 2023 and VNĐ7.65 trillion in Q4, delivering a YoY increase of 2.3 per cent and 3 per cent YoY driven by the positive impact of new store openings, a ramp-up of the 2022 store cohort, and successful store format renovation.

MCH had net revenues of VNĐ29.06 billion in 2023 and EBITDA of VNĐ7.43 trillion. Revenues were up 3.4 per cent.

On a like-for-like (LFL) basis, MCH’s revenues increased by 9 per cent in 2023 and 5.4 per cent in Q4 while maintaining a healthy inventory level.

The introduction of the “Go Global” strategy, focusing on the Chin-su brand, yielded positive results last year as exports surged 13.6 per cent to over VNĐ1 trillion.

The company’s Chin-su chili sauce secured a place among the top eight best sellers on Amazon.

These achievements resulted in a robust 31 per cent compounded annual growth rate from 2020 to 2023 in export revenues.

MCH’s core categories of home and personal care items, seasonings and convenience foods grew by 39.4 per cent, 18.2 per cent and 8.8 per cent.

MCH’s gross margins reached a record 44.9 per cent in FY2023, a significant increase from 40.1 per cent in FY2022 on an LFL basis.

With most raw material prices secured until H2, 2024, MCH has ensured margins will be stable this year.

On an LFL basis, Masan MeatLife achieved VNĐ6.98 trillion in FY2023, up 10.9 per cent, with revenues increasing across all segments, except farm chicken.

As a result of the integration into WIN membership, MEATDeli products at WCM’s outlets experienced a robust 33 per cent increase in daily sales per point of sale from January.

Masan MeatLife’s EBITDA turned positive, to VNĐ266 billion, driven by the addition of VNĐ157 billion from processed meats and significant improvements in branded fresh pork margins.

In FY2023 Phúc Long recorded revenues of VNĐ1.53 trillion. In response, PLH enhanced profitability by optimising its kiosk footprints, achieving VNĐ255 billion in EBITDA in 2023, a notable 30.6 per cent growth.

Plans for 2024

On a preliminary basis, subject to customary corporate approvals and macro conditions, Masan’s financial forecasts for FY2024 expect consolidated net revenues ranging between VNĐ84 trillion ($3.4 billion) and VNĐ90 trillion ($3.68 billion), a growth of 7-15 per cent.

The projected Core NPAT Pre-MI is expected to be within the VNĐ2.29-4.02 trillion ($93.68-164.46 million) range, up from VNĐ1.95 trillion ($79.64 million) in 2023.

Masan will continue to actively explore alternative options to deleverage and reduce interest in non-core businesses while maintaining a stringent capital allocation strategy.

Dr Nguyễn Đăng Quang, chairman of Masan Group, said: “WinCommerce is moving to sustainable profitability in 2024. Masan Consumer Holdings is back to a growth phase. Global FMCG platform is starting to become clear as Chin-su chili sauce is now in the top 8 on Amazon. MEATDeli is starting to win consumers at scale. Digitalisation of Việt Nam’s consumer infrastructure is accelerating as WIN Membership reaches eight million members. We keep going and stick to our motto of creating value for Vietnam, consumers, shareholder, and Masaners!”. — VNS