Doubling profit target by 2024, how is Masan doing business?

Despite a challenging macroeconomic environment, Masan's business performance in 2023 remained positive with a net revenue of VND 78,252 billion, representing a 2.7% increase compared to the VND 76,189 billion achieved in 2022.


Masan Group recently announced its financial report for the fourth quarter of 2023 and the whole year of 2023, showing a continued strong growth momentum. Masan’s consumer business, including WinCommerce (“WCM”), Masan Consumer Holdings (“MCH”), Masan MEATLife (“MML”), and Phuc Long Heritage (“PLH”), recorded a 40.1% growth in operating profit (“EBIT” or “earnings before interest, taxes, and repayment”) in 2023 compared to the same period last year, thanks to the record-breaking profits of MCH and the sustainable profitability of WCM.

Masan Consumer breaks profit margin record

According to Masan’s financial report, the fourth quarter of 2023 continued to be a booming quarter for MCH. In 2023, MCH achieved VND 29,066 billion in net revenue and VND 7,431 billion in EBITDA (earnings before taxes, interest, and depreciation). On a like-for-like basis, MCH’s revenue increased by 9.0% in 2023 and 5.4% compared to the same period last year while maintaining a healthy inventory level. Gross profit margin exceeded historical highs, reaching 44.9% in 2023, a significant increase from 40.1% in 2022 on a like-for-like basis, thanks to high-profit margin product portfolio, strong brand, low raw material prices, and efficient production operations.

In 2023, the Health & Personal Care, Seasonings & Convenient Food segments led the growth race, achieving growth rates of 39.4%, 18.2%, and 8.8% compared to the same period last year, respectively. To ensure profit margin stability in 2024, MCH has locked in the majority of raw material prices until the second half of this year.

In the past year, MCH’s innovative strategies have yielded positive results. For example, the introduction of new product launches through the WCM system and digital channels helped generate VND 1,284 billion in revenue from new products launched in 2023 (revenue from newly launched products like Omachi self-heating hot pot, Kokomi instant noodles, etc.), a 39% increase compared to the same period last year. In addition, the “Go Global” strategy has also brought in VND 1,005 billion in export revenue for MCH, with an annual compounded growth rate of 31% from 2020 to 2023.

WinCommerce EBITDA margin continues to increase for 4 consecutive quarters

According to Masan’s financial report, despite challenging macroeconomic conditions, WCM continued to achieve profitability in the fourth quarter of 2023 with a slight increase in EBIT across the network and an improved EBITDA margin of 3.2%, which has been increasing for 4 consecutive quarters since the beginning of the year. The net profit margin of the LFL convenience store group (stores opened prior to 2022 and still in operation) reached 3.7% in the fourth quarter of 2023.

WCM’s revenue reached VND 30,054 billion in 2023 and VND 7,653 billion in the fourth quarter of 2023, increasing by 2.3% and 3.0% respectively compared to the same period last year, thanks to the positive impact of new store openings, strong growth in converted stores, and successful store model upgrades.

In 2023, WCM focused on finding the right model for consumers in rural and urban areas (WIN stores and WinMart+ Rural). Prioritizing store renovation and upgrading rather than expanding the network scale, WCM opened 312 new WinMart+ (“WMP”) stores, including 67 new stores in the fourth quarter of 2023. WCM ended the year with a total of 3,633 stores and supermarkets nationwide. With outstanding results from the WIN and WinMart+ Rural store models, WCM renovated 309 WIN stores and 1,100 Rural stores in the second half of 2023, surpassing the initial plan of 250 WIN stores and 676 Rural stores. Throughout 2023, WCM upgraded a total of 1,615 stores, accounting for 46% of the convenience store network, demonstrating resilience and superior efficiency. This instills confidence in the leadership for continued growth in 2024.

In 2023, WCM actively implemented strategies that align with consumer needs in a challenging economic environment, and the WIN membership program is one of them. It is worth noting that the number of WIN members nationwide has reached 8 million and is expected to continue achieving new growth milestones this year.

Masan MEATLife revenue growth reaches 46%

According to Masan’s financial report, MML’s revenue and EBITDA growth remained stable in 2023, with stable EBIT in the fourth quarter of 2023. MML’s revenue increased by 46% in 2023, driven by strong sales growth in most product segments (except for poultry). The EBITDA of MML showed positive progress, reaching VND 266 billion, thanks to an additional VND 157 billion from the processed meat segment and a significant improvement in the profit margin of branded pork. On a like-for-like basis, MML achieved VND 6,984 billion in 2023, an increase of 10.9% compared to the same period last year.

Throughout the year, MML has achieved positive results through combining strategies with the WIN membership program. MML has narrowed the price gap with traditional markets through an exclusive pricing program for WIN members for branded meat products, resulting in a sustainable 33% daily sales growth rate at each WCM store from January to the end of 2023. This is also one of the company’s efforts to support consumers in a challenging economic context.

In 2024, Masan expects its core Pre-Minority Interest (Pre-MI) profit after tax to range from VND 2,290 billion to VND 4,020 billion. In a favorable scenario, Masan’s profit will double from VND 1,950 billion in 2023.

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