Masan Group (MSN) said that the brands Masan Consumer Holdings (MCH), WinComerce (WCM), Masan Meatlife (MML) and Phuc Long recorded operating profit (EBIT) of about VND 1,396 billion, an increase of more than 40% compared to 2022. This is considered the core consumer business segment of this enterprise since restructuring.

Management said the results came from record profits from Masan Consumer Holdings and good profitability from WinCommerce despite weak consumption.

For MCH, this segment had a record profit in the fourth quarter of 2023 with a 30.5% increase in after-tax profit. The rotation of high-margin products and pricing strategy contributed greatly to this result. For the whole year, MCH recorded more than VND 29,000 billion in net revenue and more than VND 7,400 billion in profit before tax, depreciation and interest (EBITDA), up 3% and 13%, respectively.

Meanwhile, at the Winmart supermarket chain and Winmart+ stores, WCM recorded revenue of more than VND30,000 billion, up more than 2% compared to 2022 thanks to the impact of opening new stores, converting and upgrading models for more than 1,600 existing points of sale. This retail chain brought in VND694 billion in EBITDA, down nearly 14% compared to the previous year. However, gross profit improved and the grocery product group had positive after-tax profit in the fourth quarter of 2023 - an important milestone for the full-year break-even roadmap.

In the meat segment, Masan Meatlife reported a 46% increase in revenue to nearly VND7,000 billion in 2023. From a loss, this segment had an EBITDA profit of VND266 billion. The management said that the competitive pricing strategy, which helps narrow the price gap between Meatdeli products and meat at traditional markets, has brought good results. However, the farm chicken segment is being affected by lower prices and sales than the same period last year.

The "youngest" Phuc Long recorded revenue of more than VND1,500 billion, down nearly 3% due to consumers cutting back on outside spending. This tea and milk tea chain increased profitability by optimizing the number of kiosks. Last year, EBITDA reached VND255 billion, up 31%. The management continued to be cautious and opened only 28 new stores, bringing the total number of points of sale outside WCM to 156 stores.

In total, Masan had more than VND78,250 billion in consolidated revenue, a slight increase of nearly 3% compared to 2022. However, core after-tax profit before allocation to minority shareholders decreased by nearly half, to VND1,950 billion due to the decrease in contribution from the mining segment Masan High-Tech Materials and Techcombank.

This year, Masan expects to achieve consolidated net revenue of VND84,000-90,000 billion, up 17-15% over the same period in 2023. As for core after-tax profit before allocation to minority shareholders, it is expected to reach VND2,290-4,020 billion, up more than 17% and double compared to 2023. This enterprise has set up different scenarios for macroeconomic conditions and the plan will be based on each scenario.

Siddhartha