Masan Reports Strong Performance Amidst Consumer Recovery
Strategic Highlights
Masan’s core consumer business witnessed a substantial 69.7% year-over-year (YoY) growth in operating profit (EBIT) in Q1/2024, indicating robust consumer market recovery and the positive effects of strategic initiatives.
Masan Consumer Holdings (MCH) achieved a 7.4% YoY revenue growth in Q1/2024 and a gross profit margin of 45.9%, representing a 400 basis point improvement YoY. The EBITDA margin stood at 25.3% in Q1/2024.
WinCommerce (WCM) posted an 8.5% YoY increase in net revenue in Q1/2024. The total store network experienced a 5.7% YoY like-for-like (LFL) sales growth. Furthermore, the company’s EBITDA grew 3.6x YoY, primarily driven by improved gross margin and LFL growth.
Masan MEATLife’s (MML) revenue increased by 7.5% YoY in Q1/2024, supported by the growing contribution of the branded pork segment and elevated pork and poultry prices. EBITDA margin improved to 6.9% in Q1/2024, compared to 1.7% in Q1/2023, leading to a positive EBIT for MML.
Strengthening and deleveraging Masan’s balance sheet while safeguarding the Company against potential macroeconomic headwinds:
Masan successfully completed a $250 million equity capital raise from Bain Capital on April 22. This investment will bolster Masan’s financial resources, enhance the company’s liquidity with an additional VND 6,228 billion in cash, and reduce the estimated pro-forma net debt to EBITDA ratio to 3.7x. Masan remains committed to exploring alternative strategic solutions to reduce debt and mitigate interest expenses.
As reported at the end of 2023, Masan had fully hedged its long-term USD-denominated debt at favorable terms, in line with the Company’s risk management policy. As a result, the recent USD appreciation did not have a material impact on the Company’s consolidated earnings.
Financial Highlights
In Q1/2024, MSN‘s consolidated revenue witnessed a modest increase, amounting to VND 18,855 billion. The robust operating performance of the consumer business cushioned the decline experienced by Masan High-Tech Materials (MHT). Net profit after minority interest (NPAT Post – MI) demonstrated positive momentum, doubling sequentially from Q4/2023.
Both the consumer business and Techcombank (TCB) registered strong EBITDA growth of 31.7% and 27.9%, respectively.
The CrownX (TCX), Masan’s integrated retail consumer platform combining MCH and WCM, recorded a 6.4% YoY revenue growth to VND 14,152 billion in Q1/2024, up from VND 13,300 billion in Q1/2023, driven by strong revenue growth in MCH and WCM, with WCM regaining LFL growth momentum. TCX’s consolidated EBITDA reached VND 1,950 billion in Q1/2024, a 27.6% YoY increase:
Maintaining ample inventory across distribution points, MCH continued to grow revenue while sustaining high-profit margins in Q1/2024.
MCH’s net revenue grew by 7.4% YoY to VND 6,727 billion in Q1/2024. This was driven by improved sales across categories, particularly with double-digit growth witnessed in the Convenience Food, Beverage, and Home Personal Care (HPC) segments, which grew by 10.3%, 23.4%, and 15.2% YoY, respectively.
MCH’s inventory days remained stable at 16 days, indicating healthy growth.
MCH’s gross profit margin stood at 45.9% in Q1/2024, up 400 basis points YoY. MCH’s net profit after tax before minority interest (NPAT Pre-MI) increased by 31.5% to VND 1,505 billion in Q1/2024, compared to VND 1,144 billion in Q1/2023.
BupNon Tea365, the newly launched tea product, has demonstrated promising early results. Introduced in November 2023, it generated revenues of VND 106 billion in Q1/2024 with a near 60% retailer sell-in rate.
WCM Posts Expanding EBIT Margin in Q1/2024, Grocery Continues to Deliver Positive Net Income
In Q1/2024, WCM’s net revenue grew by 8.5% YoY to VND 7,957 billion from VND 7,335 billion in Q1/2023. The net revenue expansion was driven by the opening of new stores, with a significant increase in the number of stores compared to the previous year. The total network registered a 5.7% LFL sales growth YoY. Additionally, mini supermarkets (WinMart+) generated a net revenue of VND 5,364 billion, up 11.4%, while supermarkets (WinMart) achieved VND 2,523 billion in Q1/2024, marking a 3.1% YoY growth.
LFL sales growth during Q1/2024 for WinMart+ and WinMart was 6.4% and 4.2%, respectively, YoY.
In Q1/2024, 40 new mini supermarkets (“WinMart+” or “WMP”) were opened, bringing the total number of stores and supermarkets nationwide to 3,667. The store-level profitability of mini supermarkets improved compared to previous years due to higher gross margins and faster LFL growth. Furthermore, new store formats such as WIN and WinMart+ Rural showed positive momentum, providing differentiation and contributing to both LFL growth and profitability. The WIN store, positioned as a “Point of Life” focused on urban consumers, achieved 7
