Masan Group’s 2022 profit down 58.3% after feed business consolidation

Vietnamese multi-business corporation Masan Group saw its 2022 net profit after tax decline by 58.3% year-on-year to VND3,567 billion ($152 million), primarily due to one-off financial income gains from deconsolidation of its feed business in the last quarter of 2021.

Excluding its 2021 feed revenue for a like-for-like comparison due to deconsolidation, Masan’s 2022 net revenue reached VND76,189 billion ($3.25 billion), a year-on-year increase of 2.6%. On a reported basis, its 2022 revenue decreased by 14%, according to its 2022 financial report seen Monday.

On a like-for-like comparison, its 2022 net profit after tax was VND4,754 billion ($202.7 million), down 52.9% on a reported basis instead of 58.3%.

“I am proud of how we have and are innovating our way out of a volatile macro and micro backdrop,” Masan Group chairman Nguyen Dang Quang said.

“In 2022, we solidified our integrated consumer-retail platform with the Win store innovation. Digitalizing our entire consumer infrastructure, from product manufacturing to the end consumer, and developing an integrated modern trade - general trade platform are Masan’s next defining innovations for 2023 and beyond.”

He added, “If we execute, we will be the consumer platform of choice by delivering a personalized consumer experience, while lowering the price of daily products and services by at least 5%. The speed and magnitude of our innovation is what give us confidence in our medium and long-term growth prospects.”

The CrownX, or TCX, Masan’s integrated consumer-retail platform that consolidates Win Commerce and Masan Consumer Holdings, recorded a decline in a challenging macro environment and weakened consumer sentiment, delivering revenue of VND56,221 billion ($2.4 billion) last year, down 3.1% year-on-year.

Win Commerce opened 730 minimarkets across Vietnam last year, including 253 in Q4, totaling 3,268 WinMart+ locations by the end of 2022.

Phuc Long tea and coffee chain, part of Masan Group, in 2022 achieved VND1,579 billion ($67.3 million) in revenue and VND195 billion ($8.3 million) in earnings before interest, taxes, depreciation and amortization (EBITDA).

The group said its Masan High-Tech Materials, or MHT, delivered net revenue of VND15,550 billion ($663.1 million), up 14.6% year-on-year due to higher APT price. APT is ammonium paratungstate, a material gained from tungsten ore.

Masan High-Tech Materials owns Nui Phao Mining Company in Vietnam and the tungsten business of Germany-based H.C. Starck Group.

H.C. Starck Tungsten Powders, wholly owned by Masan High-Tech Materials, last July invested 45 million pounds ($53.34 million) in the U.K.-based fast-charging Li-ion battery solutions Nyobolt. The investment represents a 15% equity interest on a fully diluted basis, and aims at accelerating H.C. Starck’s vision of becoming a high-tech, value-added business by developing new tungsten applications critical for future technologies.

Meanwhile, Techcombank, Masan’s associated company, contributed VND4,310 billion ($183.8 million) in EBITDA last year, representing a 11.5% year-on-year increase, Masan said.

Dutch animal nutrition giant De Heus said in November 2021 it had agreed to acquire a 100% interest in Masan's animal feed business. The value of the transaction was not disclosed but Masan said De Heus would invest $600-700 million in Vietnam's animal protein supply chain following the deal.