Masan (MSN) records revenue doubling amid crisis

Feb 1st at 07:46

01-02-2021 07:46:44+07:00

Despite the impact of the global health crisis, Masan Group’s 2020 revenues more than doubled over the previous year.

Masan records revenue doubling amid crisis

Masan Group achieved higher earnings in 2020 despite the global health crisis

Reporting its management accounts for the fourth quarter and 2020 as a whole, Masan Group achieved the targets set in its AGM, with net revenues of VND77 trillion ($3.34 billion) for the full year, within the range of VND75-85 trillion ($3.25-$3.69 billion) set, and net profit after tax post minority interest of VND1.23 trillion ($53.42 million), also within the VND1-3 trillion ($43.3-$130.29 million) goal.

The CrownX – which consolidates Masan’s interest in Vincommerce (VCM) and Masan Consumer Holdings (MCH) – was the second-largest consumer business in Vietnam with a net revenues of VND54.27 trillion ($2.5 billion) delivered in the fourth quarter, up 18.1 per cent on-year and increasing earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin by 280 basis points to 8.3 per cent.

VCM delivered a positive EBITDA of VND16 billion ($695,000) in the fourth quarter, marking completion of the first phase of its digital transformation.

Meanwhile, MCH achieved the strategic milestone of $1 billion (VND23.97 trillion) in net revenues for the year, along with net revenue growth of 27.2 per cent and EBITDA growth of 22.4 per cent on-year.

Masan MEATLife (MML) accelerated its vision to become a branded fast-moving consumer goods (FMCG) platform as its integrated meat business delivered a net revenue of $100 million (VND2.37 trillion), contributing to consolidated net revenue quintupling on-year from 3 to 15 per cent for the year.

Techcombank, meanwhile, delivered net profits after tax growth of 23.0 per cent, underpinned by its consumer-centric financial services strategy. The current and savings account ratio now represents about half of its funding base.

Meanwhile, Masan High-Tech Materials (MHT) solidified its strategy to become a global high-tech industrial materials platform with the acquisition of H.C. Starck, which was validated by Mitsubishi Materials Corporation’s $90 million capital injection into MHT for a 10 per cent fully diluted stake. The company delivered 57.8 per cent growth in net revenues, primarily driven by the consolidation of H.C. Starck in June 2020 and posted an EBITDA margin of 19.3 per cent for 2020.

Masan Group expects revenues to rise 20-40 per cent in 2021, driven by The CrownX’s growth. At the same time, it plans for its meat business to reach 20-40 per cent of MML’s net revenue, as well as MHT to turn around as a result of the H.C. and Mitsubishi partnership, supported by an upswing in commodity prices.

Chairman Dr. Nguyen Dang Quang said, “We have completed the first round of CrownX’s integrated consumer retail platform and the transformation of VCM has delivered positive EBITDA in the fourth quarter. MCH’s innovation and power brands has delivered approximately 30 per cent topline growth.”

This marks the starting point of building a high-growth and highly profitable consumer ecosystem to serve consumer needs, Quang added. “In 2021, we aim to develop VCM from a pure offline grocery chain into a seamless online-to-offline consumer solution spanning FMCG and fresh foods as well as financial and value-added services accounting for over 50 per cent of the consumer wallet,” he said. “This was the end game we envisioned when we entered the retail space.”