Masan (MSN) fulfills all business targets for 2020
Masan (MSN) fulfills all business targets for 2020
Masan Group Corporation (MSN) achieved consolidated net revenues of VND77.218 trillion (US$3.54 billion) and net profit post minority interest (NPAT Post MI) of VND1.234 trillion ($53.6 million) last year, a year-on-year increase of 106.7 per cent and 13.4 per cent, fulfilling targets approved at its 2020 annual general meeting.
The company had set revenue and NPAT Post MI targets at VND75-85 trillion and VND1-3 trillion for 2020.
On a like-for-like basis (which assumes consolidation of VinCommerce (VCM) numbers for fiscal year 2019), its net revenue grew by 19.7 per cent.
The increase in revenue was primarily driven by strong double-digit organic growth in branded consumer and meat businesses and the consolidation of newly acquired segments.
Of the group’s subsidiaries, CrownX (which consolidates Masan’s interest in VCM and Masan Consumer Holdings (MCH)), the second largest consumer business in Viet Nam by revenue, delivered net revenue of VND54.277 trillion ($2.35 billion), a year-on-year growth of 18.1 per cent, and earnings before interest, taxes, depreciation, and amortisation (EBITDA) growth of 8.3 per cent.
Masan MEATLife (MML) accelerated its vision to become a branded FMCG platform as its integrated meat business delivered net revenue of $100 million, and contribution to consolidated net revenue increased by 5 times, from 3 per cent in 2019 to 15 per cent in 2020.
Techcombank (TCB) delivered net profit after tax (NPAT) growth of 23 per cent, underpinned by its consumer-centric financial services strategy.
Masan High-Tech Materials (MHT) delivered 57.8 per cent growth in net revenue, primarily driven by the consolidation of H.C. Starck (HCS) in June 2020 and posted EBITDA margin of 19.3 per cent for 2020.
MSN Chairman Dr. Nguyen Dang Quang said: “We have completed round 1 of CrownX’s, integrated consumer retail platform and transformation as VCM has delivered positive EBITDA in 4Q, and MCH’s innovation and power brands delivered approximately 30 per cent topline growth. This is just the starting point of building a high-growth and highly profitable consumer ecosystem to serve each and every consumer need.
“In 2021, we aim to develop VCM from a pure grocery offline store into a seamless on-to-offline 'Point of Life' - a total consumer solution pning FMCG, fresh foods, financial and value-added services, accounting for over 50 per cent of the consumer wallet. This was the end game we envisioned when we entered the retail space, and the critical foundations are and will be in place in 2021 to start our Point of Life journey.”
2021 Outlook
For 2021, MSN expects to achieve 20-40 per cent growth in terms of revenue driven by The CrownX’s growth. The meat business will reach 20-40 per cent of MML’s net revenue, and MHT’s will see a turnaround as a result of integration of HCS and Mitsubishi Material’s partnership, supported by an upswing in commodity prices.
The group targets an EBITDA margin of 15-20 per cent and NPAT margin of 3-5 per cent due to positive EBITDA margin in VCM and improving the EBITDA margin of MML meat business in 2021, besides potential uplift from deleveraging initiatives through raising equity from strategic investors, and thereby improving net financial income.
VCM’s like-for-like growth and store expansion of minimarts and repositioning of supermarkets are expected to result in net revenue growth of 15-20 per cent. Its positive EBITDA margin for 2021 and aforementioned strong revenue growth, and a total commercial margin that is on par with best-in-class peers, will improve the bottom line.
MCH expects to enjoy net revenue growth of 15-20 per cent led by innovation, food premiumisation and scaling up of the beverage and home personal care category.
MHT’s net revenue is expected to grow by 50-100 per cent thanks to accelerating HCS integration to transition to a mid-stream player and an upswing in commodity prices. And its EBITDA margin will be further improved as the aforementioned drivers own a flexible supply chain.
