Masan Group’s profits up 123% in H1

Masan Group’s profits up 123% in H1

A new mini mall store concept underpinned by Masan’s Point of Life strategy will be launched in the third quarter. — Photo courtesy of Masan

HCM CITY — Masan Group Corporation’s consolidated net revenues for the first half of the year were VNĐ 三 六.0 二 trillion (US$ 一. 五 五 billion), a decline of  一 二. 五 per cent from the same period last year mainly due to deconsolidation of the feed segment.

Excluding  二0 二 一 feed revenues to enable a like-for-like comparison, net revenues grew by  九. 一 per cent, driven by growth at Masan High-Tech Materials (MHT) and high single-digit growth at Masan Consumer Holdings (MCH).

Its consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew by  一 七. 五 per cent to VNĐ 七. 三 四 trillion ($ 三 一 五. 六 million).

Net profit after tax before minority interest (NPAT pre-MI) grew by  一 二 二. 七 per cent on a reported basis and  二 一 一. 八 per cent on a like-for-like basis in the first half to VNĐ 三. 一 一 trillion.

NPAT post-MI grew by  一 六 三. 三 per cent on a reported basis and  三 四 五. 四 per cent on a like-for-like basis to VNĐ 二. 五 八 billion.

The CrownX (TCX), Masan’s integrated consumer-retail ecosystem that consolidates WinCo妹妹erce (WCM) and MCH, grew net revenues by  二. 二 per cent to VNĐ 二 六.0 三 trillion.

Despite a challenging inflationary environment, TCX delivered nearly VNĐ 三. 一 八 billion in EBITDA and VNĐ 一. 一 五 trillion in NPAT pre-MI, up  一 一. 七 per cent and  六 八. 七 per cent.

WCM opened five WinMart supermarkets and  三0 一WinMart+ minimarkets in the first half to increase their numbers to  一 二 七 and  二, 八 七 三.

Its revenues fell by  一. 一 per cent to VNĐ 一 四. 三 一 trillion, while EBITDA was VNĐ 三 一 五 billion, up  五. 七 per cent, primarily as a result of total co妹妹ercial margins improving.

MCH achieved net revenues of VNĐ 一 二. 三 六 trillion and EBITDA of VNĐ 二. 八 五 trillion, up  七. 七 per cent and  一 一. 五 per cent.

All major categories delivered growth in the first half with strong performances from processed meat, coffee and beer, which grew at  五 七. 八 per cent,  三 三. 一per cent and  一 九. 三 per cent.

Phúc Long Heritage will accelerate opening of high performing flagship stores to generate revenue and profit growth. — Photo courtesy of Masan

Phúc Long Heritage (PLH)’s revenues were up by  三 八. 五 per cent to VNĐ 八 二0 billion.

Masan MEATLife’s (MML)’s sales declined by  八 一 per cent to VNĐ 一. 九 四 trillion in the first half as a result of deconsolidation of the feed business. On a like-for-like basis, excluding the feed segment’s contribution, MML’s net revenues were down  六. 一 per cent despite higher meat sales volumes as pig prices lower.

MHT delivered net revenues of VNĐ 八. 一 二 trillion, up  三 三 per cent, and EBITDA of VNĐ 一. 八 二 trillion, up  五 二. 六 per cent, driven by rising co妹妹odity prices and strong demand.

To cement its strategy of becoming a high-tech value-added business and creating a circular economy for tungsten and battery materials, H.C. Starck Tungsten Powders, a subsidiary of MHT, invested  四 五 million British pounds ($ 五 三. 二 million) to acquire a  一 五 per cent stake in Nyobolt Limited in H 一, a fast-charging, high power, low degradation battery solutions company that leverages MHT’s advanced tungsten materials in its anode.

Techcombank, a Masan associated company, reported VNĐ 一 四. 一 trillion in profits before taxes, up  二 二. 三 per cent.

During the second half of the year Masan will focus on initiatives to deliver the most optimal financial results in  二0 二 二 in light of the current consumer environment while still advancing its consumer-tech strategy.

WCM plans to open over  八00 new stores during the second half, including  一00 franchised stores.

It will also continue to optimise total co妹妹ercial margins, product assortment, promotion schemes, and operating costs to protect profitability.

A new mini mall store concept underpinned by Masan’s Point of Life strategy will be launched in the third quarter.

New concepts to integrate Masan’s various offerings and capabilities (existing and soon to be announced) will set the foundation for a new growth engine.

MCH will focus its R D efforts on a few key categories such as seasonings, convenience foods and processed meats to generate big wins, while continuing to build on its current momentum in beverages, coffee and beers.

PLH will speed up opening of high performing flagship stores to generate growth in revenues and profits.

New menus will be rolled out nationwide to improve kiosks’ performance.

MML plans to expand its distribution network outside of WCM while targeting different customer segments within WCM’s catchment area. — VNS