Masan Group Shareholders Approve 100% Dividend Distribution for 2023
On April 25, in Ho Chi Minh City, Masan Group Corporation (HOSE: MSN) and its two subsidiaries, Masan Consumer (stock code: MCH- UPCoM) and Masan MEATLife (stock code: MML- UPCoM), jointly hosted their 2024 Annual General Meeting of Shareholders.
At the meeting, Ms. Nguyen Thi Phuong, WCM General Director, reported that the mini-supermarket chain completed its restructuring phase in 2023, leading to significant improvements in financial performance with revenues reaching VND 7,957 billion, marking a 9% growth in Q1/2024 compared to the same period last year. Moreover, WCM achieved positive EBIT (earnings before interest and taxes) for the essential goods segment for three consecutive quarters, while 2,205 stores recorded positive EBIT. WCM is projected to report positive net income after taxes starting from Q1/2025.
Masan Group’s shareholders approved a 100% dividend distribution for 2023: the Board of Directors will plan to consider the distribution of remaining after-tax profit as of December 31, 2023, and make an interim dividend payment for 2024. The plan is to be developed within one month.
In the consumer goods manufacturing and distribution segment, Mr. Truong Cong Thang, General Director of Masan Consumer Holdings (MCH), stated that MCH has successfully established five strong brands with annual revenues ranging from USD 150 million to 250 million: Kokomi, Omachi, CHIN-SU, Nam Ngu, and Wakeup 247, contributing to 80% of total revenue growth.
MCH aims to further expand its target market by entering the out-of-home consumption market, providing premium products as a “home meal replacement” (HMR) and “restaurant meal replacement” (RMR) for consumers. Masan Consumer’s strategic goal is to establish six billion-dollar brands, execute the “Go Global” strategy, and become the leading FMCG growth and profit contributor in Southeast Asia. Masan Consumer targets 10–20% of revenue from the global market, bringing Vietnamese brands to the world.
Mr. Danny Le, CEO of Masan Group, emphasized that to realize these ambitious goals, Masan is focused on the following formula: strengthening distribution networks, increasing market share spending (expanding target markets for Masan’s strong brands), increasing membership (connecting brands, retailers, and consumers), and continuing to invest in logistics and artificial intelligence.
The Group’s management also reported strengthening and deleveraging Masan’s balance sheet while safeguarding the company against potential macroeconomic headwinds. On April 22, Masan completed a USD 250 million equity capital raise from Bain Capital. This investment will strengthen Masan’s financial resources, enhancing its liquidity with an additional VND 6,228 billion in cash and reducing net debt/EBITDA to 3.7x. Masan continues to explore alternative strategic solutions to reduce debt, thereby decreasing interest expenses.
According to the company’s report at the end of 2023, Masan has hedged 100% of its long-term USD-denominated debt exposure with favorable terms, in line with the company’s risk management policy. Consequently, the recent appreciation of the US dollar had no material impact on the company’s consolidated profit.
In 2024, Masan projects consolidated net revenue to be in the range of VND 84,000 – 90,000 billion, representing a growth of 7% – 15% year-on-year. The core consumer businesses are still expected to drive revenue growth. Core net profit after tax before minority interest (Core NPAT Pre – MI) is projected to be in the range of VND 2,290 billion – 4,020 billion, a significant increase from VND 1,950 billion in 2023.
