Masan's (MSN) net revenues reach $1.57 billion in first half of 2023
Masan's (MSN) net revenues reach $1.57 billion in first half of 2023
Masan Group Corporation (HSX:MSN) on July 28 released its unaudited management accounts for the first half of 2023, when challenging macro conditions continued to put a dent in both consumer and business confidence.
According to the report, Masan’s net revenue reached VND37.32 trillion ($1.57 billion) in the first half of 2023, an increase of 3.6 per cent versus VND36 trillion ($1.52 billion) in the same period last year.
The CrownX’s revenue recorded VND26.84 trillion ($1.13 billion) in the period and VND13.54 trillion ($571.4 million) in Q2, up 3.1 per cent on-year and 7.6 per cent on-year, respectively. TCX’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) posted VND3.51 trillion ($148.19 million) in the first half and VND1.97 trillion ($83.2 million) in Q2, up 10.3 per cent on-year and 28.3 per cent on-year, respectively.
Despite weakened consumer sentiment affecting sales productivity, WinCommerce (WCM)’s revenue recorded 1.5 per cent on-year growth in H1 and 2.5 per cent on-year growth in Q2, while profitability was largely protected.
WCM’s net revenue reached VND14.52 trillion ($612.7 million) in H12023 and VND7.18 trillion ($303 million) in Q2, up 1.5 per cent on-year and 2.5 per cent on-year, respectively. WCM has opened 152 new WinMart+ and two new WinMarts so far this year, totalling over 3,500 locations nationwide for both minimarts and supermarkets.
WCM continued to improve gross profit margin to 24.8 per cent in the second quarter, a 270 basis point increase from the margin of 22.1 per cent in Q1. As a result, WCM’s EBITDA margin increased 120bps to 2.2 per cent in Q2 from 1 per cent in the previous quarter. Some 106 WIN stores grew sales by 4 per cent on-year.
The EBITDA margin in June reached 3.6 per cent, demonstrating a continual and strong profitability improvement trend despite store openings and weaker consumer demand.
Masan Consumer Corporation (MCH) increased topline significantly by 11.6 per cent on-year in H1 and 21.7 per cent on-year in Q2 on a like-for-life basis and delivered a sustainable gross margin expansion to 43.5 per cent so far this year.
MCH's net revenue registered 4.7 per cent on-year growth to VND12.94 trillion ($546.1 million) in H1 and 13 per cent on-year growth to VND6.68 trillion ($281.9 million) in Q2. On a LFL basis, net revenue grew by 11.6 per cent on-year in 1H2023 and 21.7 per cent on-year in 2Q2023.
Seasonings, Convenience Foods, and HPC recorded 21.3 per cent on-year, 7.8 per cent on-year, and 52.1 per cent on-year growth rates, respectively, in 1H2023. In 2Q2023, these categories reported revenue growth rates of 29.8 per cent on-year, 24.6 per cent on-year, and 73.6 per cent on-year, respectively.
MCH gross margin continuously expanded and achieved 45 per cent in 2Q2023, up 530 bps from 39.7 per cent in 2Q2022. MCH’s EBITDA margin increased to 25 per cent in 2Q2023, up ~150 bps from 23.5 per cent in 2Q2022.
Phuc Long Heritage (PLH) posted 4.6 per cent on-year revenue decline in 1H2023 with slower new store opening amidst challenging F&B retail environment.
PLH outside WCM segment experienced positive growth in revenue, reaching VND581 billion ($24.5 million) in 1H2023, which represented a 3.9 per cent on-year growth.
In 1H2023, for kiosks, the Hub & Spokes model has increased spokes’ average daily sales by 40.0 per cent compared the pre-conversion performances.
Masan MEATLife (MML) increased revenue by 70.2 per cent on-year in 1H2023 and 68.7 per cent on-year in 2Q2023 thanks to higher topline across all segments and the addition of the processed meat segment.
MML revenue increased to VND3.3 trillion ($139.27 million) in 1H/2023, up 70.2 per cent from VND1.94 trillion ($81.87 million) in 1H/2022. Revenues increased by 22.2 per cent in H1 thanks to higher sales across all segments.
For processed meat, revenues increased by 45.5 per cent to VND1.11 trillion ($46.8 million), primarily driven by increased volume.
For branded meat, as MML closes the gap with wet markets via exclusive prices for WIN members, daily revenue for MML products in WCM’s outlets improved by 30 per cent to VND1.55 million ($65.41) in June alone thanks to an increase in volume sold.
Meanwhile, Masan High-Tech Materials revenues declined 9.9 per cent on-year in the first half of 2023 due to subdued global demand for its products.
Techcombank, Masan’s associated company, contributed VND1.85 trillion ($78.07 million) in EBITDA in the half, representing a decline of 23.4 per cent on-year.
In terms of the balance sheet, Masan will continue to actively explore alternatives in the capital market to extend its debt maturities, improve interest rates, and unlock earnings via deleveraging.
