Mining, new products boost Masan Q2 profits

Mining, new products boost Masan Q2 profits

Private equity firm Masan (MSN) has announced second quarter profits thanks to the launch of popular new products and its chemical Nui Phao Project.

The group's net revenues surpassed VND2.7 trillion (US$127.3 million), up 8.4 per cent year-on-year, while gross profits reached VND1.1 trillion ($51.8 million), rising 7.1 per cent thanks to growth from its food processing subsidiary Masan Consumer.

Its operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was up 3.7 per cent at VND660 billion ($31.1 million).

Masan Consumer continued investing in building its brands, with significant focus on its instant coffee business. It introduced a new formula for its Wake Up Saigon brand and also launched Phinn, a 2-in-1 instant coffee.

It expects to see its instant noodle share surge 30 per cent by the end of this year.

In addition, the Nui Phao project has achieved several key milestones in the second quarter. It commenced production of tungsten and copper concentrate to international specifications, and achieved its first product sales.

More recently, Nui Phao has successfully produced sodium tungstate. Further off-take contracts for tungsten, bismuth and fluorspar are already in place.

However, the performance of one affiliate, Techcombank, was not as good as expected. The challenging economic environment impacted the bank's results, as deposits from customers grew 0.2 per cent while loans rose 2.2 per cent from December 2012 to June 2013.

Lower interest rates and the tougher lending environment resulted in the second quarter's net profit of VND194 billion ($9.1 million), down 57.6 per cent from the corresponding period last year.

Shares of the group, one of the largest blue chips on the HCM City Stock Exchange, shed 0.6 per cent to VND87,500. 

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