Stock Market

MSN – Strengthening its Position for Sustainable Growth (Part 1)

The Masan Group Corporation (HOSE: MSN) is Vietnam's leading consumer-retail company, with a diverse portfolio spanning fast-moving consumer goods (FMCG), food and beverage retail, branded meat products, financial services, and high-tech industrial materials. MSN's core businesses continue to deliver positive results, showcasing their adaptability to market fluctuations and reinforcing their prospects for sustainable growth.

Administrator

30 August, 2025

Breakthrough profits driven by retail and meat segments

In the first half of 2025, MSN recorded net revenue of VND 37,212 billion, a 5% decrease compared to the same period last year. However, net profit surged impressively by 83% to VND 2,602 billion, completing 53% of the full-year plan. This growth was mainly driven by superior business performance at WinCommerce (WCM) and Masan MEATLife (MML). This has contributed to a new high in the valuation of MSN shares (to be discussed in detail in Part 2).

Revenue structure of MSN in the period of 2021-6M2025

Source: MSN

“Rural-oriented” strategy is the main growth driver for WinCommerce

In the first half of 2025, WinCommerce’s revenue reached VND 17,915 billion, a 13% increase year-on-year, thanks to an effective network expansion strategy. As of the end of Q2 2025, WCM had a net opening of 318 stores, completing 80% of its full-year plan and bringing the total number of stores nationwide to 4,146, solidifying its position as Vietnam’s leading modern retailer.

Number of WCM store models as of the end of Q2 2025

Source: MSN

With over 60% of Vietnam’s population living in rural areas, this region is becoming a strategic driver, as the average daily revenue of mini-supermarkets here has reached nearly 90% of the urban level. In the first half of 2025, about 75% of WCM’s newly opened stores were WinMart+ rural models, and these mini-supermarkets in rural areas recorded LFL^(**) revenue growth of 13.5% in Q1 and 12.4% in Q2, indicating positive consumer reception.

Thus, after years of searching, WinCommerce has found its main growth driver with the “rural-oriented” strategy. The writer assesses that this is the most notable turning point for WinCommerce since 2019.

Notes:

(*) Net opening: number of new stores opened minus the number of closed stores in the period.

(**) LFL (Like for like) growth: This is an indicator measuring revenue growth from existing stores that have been operating in both comparison periods, excluding the impact of new store openings, acquisitions, or closures. WCM’s LFL refers to the group of stores opened before 2024 and still operating.

Masan MEATLife achieves double-digit growth

Regarding Masan MEATLife, revenue in the first half of 2025 reached VND 4,409 billion, a 25.6% increase year-on-year, thanks to high pig prices and increased production in both livestock and meat segments. Notably, profit margins continued to improve significantly to 27.4%, reflecting the effectiveness of the strategy to focus more on the processed meat segment with higher added value and profit margins. Fresh pork remains the main growth driver, while processed meat products are increasingly contributing more, in line with consumer trends towards convenience and high-quality products.

Revenue and gross profit margin of MML in the period of 2021-6M2025

Source: MSN

In addition, MML continued to strengthen its integration with WinCommerce. As of the end of Q2 2025, MML held a 62% market share in the animal protein category at WCM, leading in both fresh and processed meat, with market shares of 91% and 29%, respectively. Going forward, MML and WCM will continue to leverage their cooperative advantages to optimize supply, expand premium product portfolios, and enhance in-store execution.

Masan Consumer slows down due to tax policy changes

Masan Consumer Corporation (MCH) recorded revenue of VND 13,764 billion in the first half of 2025, a 1.5% decrease year-on-year. In Q2 alone, revenue decreased by 15% due to disruptions in the traditional retail channel (General Trade – GT) caused by new tax regulations for individual business households, leading to a significant decline in inventory at traditional retailers.

In response, MCH accelerated the transition to a more direct and flexible distribution model, reducing reliance on the GT channel. In the second half of 2025, MCH will continue to expand direct distribution, optimize inventory at the point of sale, and drive product innovation to strengthen the foundation for sustainable growth.

Revenue and gross profit margin of MCH in the period of 2021-6M2025

Source: MSN

Despite distribution channel disruptions, some product categories maintained stability, such as personal & home care, coffee, and exports. This partly offset the decline from core categories like condiments, convenience foods, and bottled beverages, which were heavily impacted by market fluctuations and changes in consumer behavior.

Revenue of MCH by product category in 6M2025

(Unit: Billion VND)