The introduction of the “Go Global” strategy, focusing on the Chin-su brand, yielded positive results last year as exports surged 13.6% to over one trillion dong. — Vietnam News
HO CHI MINH CITY: Vietnam Food and beverage firm Masan’s net revenue for the financial year 2023 (FY23) has climbed 2.7% to 78.25 trillion dong.
Revenue for the fourth quarter (4Q) edged up to 20.78 trillion dong, according to its unaudited accounts for the year released on Tuesday.
Its free cash flows rose to 7.45 trillion dong last year, a significant increase from the 887 billion dong it reported in 2022.
Earnings before interest and taxes for Masan’s core consumer businesses increased by 40.1% in 2023, mainly driven by record-breaking profitability at Masan Consumer Holdings (MCH) and resilient profitability at WinCommerce (WCM), despite consumer headwinds.
CrownX, Masan’s integrated consumer retail platform that consolidates WCM and MCH, recorded top-line growth of 2.6% year-on-year (y-o-y), delivering revenue of 57.68 trillion dong despite a challenging environment due to low consumer confidence.
WCM recorded revenue of 30 trillion dong in 2023 and 7.65 trillion dong in 4Q, for y-o-y increase of 2.3% and 3%, respectively, 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 revenue of 29.06 billion dong in 2023 and earnings before interest, taxes, depreciation and amortisation (ebitda) of 7.43 trillion dong. Revenue was up 3.4%.
On a like-for-like (LFL) basis, MCH’s revenue increased by 9% in 2023 and 5.4% in 4Q, 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% to over one trillion dong.
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% 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%, 18.2% and 8.8%, respectively.
MCH’s gross margins reached a record 44.9% in FY23, a significant increase from 40.1% in FY22, on an LFL basis.
With most raw material prices secured until the second half of 2024, MCH has ensured margins will be stable this year.
On an LFL basis, Masan MeatLife achieved 6.98 trillion dong in FY23, up 10.9%, with revenue increasing across all segments, except farm chicken.
As a result of the integration into WIN membership, MEATDeli products at WCM’s outlets saw a robust 33% increase in daily sales per point of sale in January.
Masan MeatLife’s ebitda turned positive to 266 billion dong, driven by the addition of 157 billion dong from processed meats and significant improvements in branded fresh pork margins.
In FY23, Phuc Long (PLH) recorded revenues of 1.53 trillion dong.
PLH enhanced profitability by optimising its kiosk footprint, achieving 255 billion dong in ebitda in 2023, a notable 30.6% growth.
Subject to customary corporate approval and macro conditions, Masan’s financial forecasts for FY24 expect consolidated net revenues ranging between 84 trillion dong and 90 trillion dong, a growth of 7% to 15%.
The projected core net profit is expected to be within the 2.29 trillion dong to 4.02 trillion dong range, up from 1.95 trillion dong 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 Nguyen Dang Quang, chairman of Masan Group, said: “WinCommerce is moving to sustainable profitability in 2024. Masan Consumer Holdings is back in a growth phase.
“Consumer goods platforms are starting to become clearer as Chin-su chili sauce is now in the top eight on Amazon and MEATDeli is starting to win consumers at scale”. — Viet Nam News/ANN
