Vietnam conglomerate Masan almost doubles net profit in H1

Masan Group, a leading consumer goods conglomerate in Vietnam, posted H1/2024 after-tax profit of VND607 billion ($24 million), up 89.7% year-on-year.

The group, listed on the Ho Chi Minh Stock Exchange (HoSE) as MSN, said in a second quarter review Friday that the profit was made on revenues of VND38,989 billion ($1.54 billion), up 4.5% year-on-year.

"Masan Consumer continues to deliver double-digit top and bottom-line growth, while our other consumer platforms start to reach sustainable profitability levels," the review quoted Nguyen Dang Quang, chairman of Masan Group, as saying.

"WinCommerce delivered profits in June and Masan MEATLife achieved positive EBIT (earnings before interest and taxes) for the second straight quarter. We are confident in delivering our 2024 profit guidance and growing profitably in the short and medium term to deliver superior shareholder returns," he noted.

Masan Consumer Corporation, the food arm of Masan, delivered 14% year-on-year revenue growth in Q2/2024 to VND7,387 billion ($291.8 million), driven by convenience foods (+20.7%), beverages (+17.6%), and coffee (+16.0%).

WinCommerce, the retail arm, reported 9.2% year-on-year revenue growth in Q2/2024 to reach VND7,844 billion ($309.9 million) across the whole network, mainly driven by new store formats of WIN (catering to urban shoppers) and Winmart+ Rural (catering to rural shoppers), with 6.3% and 10.7% year-on-year growth per like-for-like (LFL) calculation, respectively, the review said.

Meanwhile, its ready-to-drink beverage subsidiary Phuc Long Heritage, known for Phuc Long tea, saw net revenue grow 5.3% year-on-year to VND391 billion ($15.5 million) in Q2/2024. The growth was mainly driven by contributions of 15 new stores opened after Q2/2023.

The review said “management continued to maintain a prudent approach,” opening just four new stores outside the WinCommerce umbrella in Q2/2024, increasing total network strength to 163 stores nationwide.