Masan Consumer profit climbs 32% in Q1

Masan Consumer Holdings, one of Vietnam's leading F&B companies, recorded a profit after tax of VND1,185 billion ($51.6 million) in the first quarter of this year, up 32% year-on-year.

Its revenue reached $269.5 million, a 17.5% increase against the same period last year, according to the company's Q1 financial report.

Revenue climbed faster than cost of goods sold, resulting in a 20.5% rise in gross profit to $113.3 million. Its gross profit margin improved from 41% to 42%.

Masan Consumer, Masan Group’s subsidiary, is currently listed on the Unlisted Public Company Market (UPCoM: MCH).

Masan Group in late 2019 merged two Vingroup subsidiaries, VinCommerce and VinEco, into Masan Consumer to form The CrownX, a retail and consumer platform. Accordingly, Masan Group will take over the retail network’s operation, with Vingroup acting as its shareholder.

Following the acquisition, VinCommerce was renamed WinCommerce, followed by its retail chains including Winmart and Winmart+.

Masan's CIO at a digital transformation forum in 2019 said that manufacturers like Masan were concerned about sharing its profit with distributors and retailers who could dominate the market. Therefore, Masan’s acquisition of the Winmart chain was intended to assist the group in becoming the market dominator.

Masan currently has a great advantage by owning 12 product brands ranked top in various consumer goods sectors. Therefore, selling Masan's products in the Winmart chain will both benefit Masan Consumer and Wincommerce. The duo will save intermediary costs and transportation time when Vinmart sells Masan’s products.

The CrownX achieved a net revenue of $586 million in Q1/2022, up 7.3% year-on-year due to Masan Consumer's revenue growth and an additional 109 WinCommerce stores.

WinCommerce in Q1 reached $318 million and $70.6 million in revenue and profit after tax respectively, up 0.8% and 25% year-on-year.

Masan Consumer’s sales through Winmart and Winmart+ systems in Q1 reached $11.8 million, up 32% year-on-year, but only equal to 4.4% of Masan Consumer’s net revenue.