Illustrative image (Photo: Masan) HCM City (VNS/VNA) - Masan Group Corporation's consolidated net revenueincreased by 13.3 percent in Q1 to 19.977 trillion VND (862.53 million USD),primarily due to double-digit organic growth in its branded consumer and meatbusinesses and 178.2 percent growth by Masan High-Tech Materials (MHT) due toH.C. Starck (HCS).
Its consolidated earnings before interest, taxes, depreciation, andamortisation (EBITDA) in the first quarter grew 62.2 percent year-on-year. ItsEBITDA margin was 15.7 percent as against 11 percent a year earlier.
In the first quarter EBITDA margins improved to 1.8 percent at VinCommerce(VCM) and remained stable at Masan Consumer Holdings (MCH) and Masan MEATLife(MML). But MHT saw lower margins as a result of the consolidation of HCS andthe lag effect of the recent price recovery, which is expected to be realisedin the following quarters.
MSN delivered 187 billion VND (8.08 million USD) in net profit post minorityinterest. Profitability is expected to grow faster than topline, due to totalcommercial margin (TCM) improvement by VCM, stable margins at MCH and increasedprofitability at MML and MHT.
Among its affiliates, the CrownX delivered EBITDA of 1.216 trillion VND (52.6million USD), or double the 614 billion VND (26.6 million USD) achieved in thesame period last year as EBITDA margin expanded by 5.1 precentage points to 9.7percent.
VinCommerce has delivered two consecutive quarters of positive EBITDA,improving from 0.2 percent in the fourth quarter of 2020 to 1.8 percent in Q1this year.
VCM completed negotiations with strategic suppliers representing 40 percent ofsales in Q1, increasing TCM by 1 percent on a run rate basis. VCM still targetsto enhance TCM by 2.5-3 percent for fiscal year 2021.
“VCM’s Q1 results demonstrate our capability to run a scalable and profitableretail platform,” Dr Nguyen Dang Quang, MSN chairman, said.
“We are now laser focused on re-expanding our footprint nationwide to serve30-50 million consumers by 2025. By year end our store network will be at leastequal to the network we acquired. The only difference is our expansion planswill also deliver profits.”
Masan Consumer Holdings posted 18.8 percent topline growth and EBITDA margin of20.8 percent despite higher raw material costs. Topline expansion was driven byan innovation-led growth strategy as 42 percent of growth in Q1 was contributedby new products launched in 2020.
The beverage segment recovered and grew by 35.5 percent while growth ofconvenience foods slowed as expected due to COVID-19 related stockpiling byconsumers in Q1, 2020. Management expects to raise profitability levels back to2020 levels in the following quarters as it optimises brands and sellingexpenses.
On April 6, 2021, SK Group of Korea, a major shareholder of MSN, acquiredanother 16.26 percent stake in VinCommerce for a total cash consideration of$410 million. SK Group’s investment is not only a testament to the company’sexecution capabilities but also its vision of creating a ‘Point of Life’ off toonline platform to serve consumers’ grocery, financial and entertainment needs.
Masan MEATLife delivered stable EBITDA margins of 10.6 percent in Q1 in spiteof a rising soft commodity price environment. MML delivered 38.5 percentrevenue growth versus Q1 2020 as branded meat sales doubled and feed volumesincreased by over 20 percent due to a recovery in the pig population.
Techcombank, which is associated with MSN, delivered profit before tax growthof 76.8 percent underpinned by its consumer-centric financial servicesstrategy. Current account and savingsaccount (CASA) represents approximately 44 percent of the funding basecontributing to a strong NIM of 5.8 percent.
Masan High-Tech Materials delivered 178.2 percent growth in topline driven bypent-up customer demand post-COVID and consolidation of HCS.
Its EBITDA margin reached 16.1 percent but the company still reported a lossfor the quarter as higher commodity prices during the period will not be fullyrealised until the next quarter.
However, MHT reported a net profit of approximately 70 billion VND in March2021. Management forecasts higher commodity prices in the following quarters.
MSN expects topline growth to pick up in Q2, with a new innovation pipelinefrom MCH, LFL growth in VCM and store expansion plan, MML’s meat businessscaling up, and MHT benefiting from higher commodity prices./.
Its consolidated earnings before interest, taxes, depreciation, andamortisation (EBITDA) in the first quarter grew 62.2 percent year-on-year. ItsEBITDA margin was 15.7 percent as against 11 percent a year earlier.
In the first quarter EBITDA margins improved to 1.8 percent at VinCommerce(VCM) and remained stable at Masan Consumer Holdings (MCH) and Masan MEATLife(MML). But MHT saw lower margins as a result of the consolidation of HCS andthe lag effect of the recent price recovery, which is expected to be realisedin the following quarters.
MSN delivered 187 billion VND (8.08 million USD) in net profit post minorityinterest. Profitability is expected to grow faster than topline, due to totalcommercial margin (TCM) improvement by VCM, stable margins at MCH and increasedprofitability at MML and MHT.
Among its affiliates, the CrownX delivered EBITDA of 1.216 trillion VND (52.6million USD), or double the 614 billion VND (26.6 million USD) achieved in thesame period last year as EBITDA margin expanded by 5.1 precentage points to 9.7percent.
VinCommerce has delivered two consecutive quarters of positive EBITDA,improving from 0.2 percent in the fourth quarter of 2020 to 1.8 percent in Q1this year.
VCM completed negotiations with strategic suppliers representing 40 percent ofsales in Q1, increasing TCM by 1 percent on a run rate basis. VCM still targetsto enhance TCM by 2.5-3 percent for fiscal year 2021.
“VCM’s Q1 results demonstrate our capability to run a scalable and profitableretail platform,” Dr Nguyen Dang Quang, MSN chairman, said.
“We are now laser focused on re-expanding our footprint nationwide to serve30-50 million consumers by 2025. By year end our store network will be at leastequal to the network we acquired. The only difference is our expansion planswill also deliver profits.”
Masan Consumer Holdings posted 18.8 percent topline growth and EBITDA margin of20.8 percent despite higher raw material costs. Topline expansion was driven byan innovation-led growth strategy as 42 percent of growth in Q1 was contributedby new products launched in 2020.
The beverage segment recovered and grew by 35.5 percent while growth ofconvenience foods slowed as expected due to COVID-19 related stockpiling byconsumers in Q1, 2020. Management expects to raise profitability levels back to2020 levels in the following quarters as it optimises brands and sellingexpenses.
On April 6, 2021, SK Group of Korea, a major shareholder of MSN, acquiredanother 16.26 percent stake in VinCommerce for a total cash consideration of$410 million. SK Group’s investment is not only a testament to the company’sexecution capabilities but also its vision of creating a ‘Point of Life’ off toonline platform to serve consumers’ grocery, financial and entertainment needs.
Masan MEATLife delivered stable EBITDA margins of 10.6 percent in Q1 in spiteof a rising soft commodity price environment. MML delivered 38.5 percentrevenue growth versus Q1 2020 as branded meat sales doubled and feed volumesincreased by over 20 percent due to a recovery in the pig population.
Techcombank, which is associated with MSN, delivered profit before tax growthof 76.8 percent underpinned by its consumer-centric financial servicesstrategy. Current account and savingsaccount (CASA) represents approximately 44 percent of the funding basecontributing to a strong NIM of 5.8 percent.
Masan High-Tech Materials delivered 178.2 percent growth in topline driven bypent-up customer demand post-COVID and consolidation of HCS.
Its EBITDA margin reached 16.1 percent but the company still reported a lossfor the quarter as higher commodity prices during the period will not be fullyrealised until the next quarter.
However, MHT reported a net profit of approximately 70 billion VND in March2021. Management forecasts higher commodity prices in the following quarters.
MSN expects topline growth to pick up in Q2, with a new innovation pipelinefrom MCH, LFL growth in VCM and store expansion plan, MML’s meat businessscaling up, and MHT benefiting from higher commodity prices./.
VNA
