Vietnam conglomerate Masan’s revenue grows 3.5% in Jan-Sep, affirms SK as long-term partner

By Tri Duc
Tue, October 31, 2023 | 10:23 am GMT+7

Leading Vietnamese private conglomerate Masan Group recorded a revenue of VND57.47 trillion ($2.34 billion) in the first nine months of 2023, up 3.5% year-on-year, the firm announced on Monday.

Masan, listed on the Ho Chi Minh Stock Exchange (HoSE) as MSN, said its earnings before interest, taxes, depreciation and amortization (EBITDA) in the period declined 6% year-on-year to VND10.18 trillion ($414.2 million), with its EBITDA margin falling from 19.5% in January-September 2022 to 17.7% in the same period of 2023.

The firm’s post-tax profit shrank 65.8% year-on-year to VND1.35 trillion ($55.1 million), as the income in 2022 featured a one-off boost related to the De Heus transaction and its cafe chain Phuc Long Heritage’s valuation uplift, MSN noted. Another impactful factor was the lower profits of its high-tech unit Masan High-Tech Materials and affiliate Techcombank.

Prime Minister Pham Minh Chinh attends a booth of Masan High-Tech Materials at Vietnam International Innovation Expo 2023, October 28, 2023. Photo courtesy of the company.

Prime Minister Pham Minh Chinh attends a booth of Masan High-Tech Materials at Vietnam International Innovation Expo 2023, October 28, 2023. Photo courtesy of the company.

Masan highlighted that its consumer businesses, including retail chain WinCommerce, Masan Consumer Holdings, Masan MEATLife, and Phuc Long Heritage, grew their combined operating profit by 45.5% year-on-year.

The company said it has and will continue to take strategic actions to narrow the gap between its core profit and post-tax profit, by upsizing the recent Bain Capital equity transaction with long-term investors, hedge about 30% of its foreign currency debt exposure, and seek to divest from non-core assets.

“There are no hedging structure or stock borrow of MSN shares as part of the equity investment that would result in MSN share needing to be sold in the open market at the date of issuance,” MSN said in a statement. Bain Capital and potential follow-on investors are fully aligned with current MSN shareholders, the firm said.

Similarly, South Koreas’s SK Group, which spent VND11 trillion ($447.7 million) on buying shares to become a major stakeholder of MSN five years ago, is a long-term partner, MSN said.

With respect to MSN shares, both sides are working together to achieve a multi-year solution to mutually maximize their shareholder value, MSN clarified following a story in late 2022 that SK Group was looking to sell some assets in Vietnam to reinvest elsewhere.

MSN shares ended up 0.35% at VND58,000 ($2.36) on Monday.

Comments (0)
  • Read More
World Bank’s IFC plans $200 mln loan to LG Innotek Vietnam

World Bank’s IFC plans $200 mln loan to LG Innotek Vietnam

The International Finance Corporation (IFC), the private sector arm of the World Bank Group, plans to make a sustainability-linked loan (SLL) of up to $200 million to LG Innotek Vietnam Haiphong Co., Ltd.

Industries - Tue, October 29, 2024 | 10:11 am GMT+7

Vietnam banks' earnings outlook ‘relatively positive’: PYN Elite Fund

Vietnam banks' earnings outlook ‘relatively positive’: PYN Elite Fund

The Q3/202 earnings growth of Vietnam’s listed companies will likely settle around 20-30% and banks’ earnings outlook for the next 12 months is also relatively positive, said the Finland-based PYN Elite Fund.

Finance - Tue, October 29, 2024 | 9:39 am GMT+7

Chinese e-commerce giant Temu's Vietnam entry: unfair competition or market economy norm?

Chinese e-commerce giant Temu's Vietnam entry: unfair competition or market economy norm?

Vietnam's social media is currently inundated with ads from Temu, the e-commerce platform under China’s PDD Holding, showcasing a diverse array of products – from electronic chips to refrigerator mats – at discounts of up to 90%, and raising concerns about its strategy and compliance.

Opinion - Tue, October 29, 2024 | 7:55 am GMT+7

China’s BYD to repair Apple tablets with $375 mln northern Vietnam project

China’s BYD to repair Apple tablets with $375 mln northern Vietnam project

Chinese giant BYD is set to repair Apple tablets at its factory in Vietnam’s northern province of Phu Tho.

Industries - Mon, October 28, 2024 | 10:27 pm GMT+7

Singapore spends $270 mln on AI infrastructure, human resources

Singapore spends $270 mln on AI infrastructure, human resources

Singapore’s National Research Foundation (NRF) will allocate $270 million to the National Supercomputing Centre (NSCC) in the next three years to train specialists and develop next-gen supercomputers in order to boost AI through supercomputing talent and infrastructure.

Southeast Asia - Mon, October 28, 2024 | 10:21 pm GMT+7

Malaysia to leverage 2025 ASEAN chairmanship to advance regional carbon initiatives

Malaysia to leverage 2025 ASEAN chairmanship to advance regional carbon initiatives

Malaysia’s ASEAN 2025 chairmanship provides the best opportunity to promote carbon trading and carbon credits among its member countries, says Sarawak’s Deputy Minister of Energy and Environmental Sustainability Datuk Dr Hazland Abang Hipni.

Southeast Asia - Mon, October 28, 2024 | 10:20 pm GMT+7

Vietnam, UAE elevate relations to comprehensive partnership

Vietnam, UAE elevate relations to comprehensive partnership

The United Arab Emirates (UAE) has become Vietnam's first comprehensive partner in the Middle East, underscoring the two nations' commitment and high expectations for a strengthened, practical and effective collaboration.

Politics - Mon, October 28, 2024 | 10:16 pm GMT+7

UAE plans to hold conference to promote investment into Vietnam: minister

UAE plans to hold conference to promote investment into Vietnam: minister

The United Arab Emirates (UAE) has plans to organize a large-scale conference in Vietnam to canalize investment from the UAE and elsewhere into the Southeast Asian country, says a minister.

Investing - Mon, October 28, 2024 | 5:41 pm GMT+7

Sustainable packaging key focus area in Suntory PepsiCo Vietnam growth strategy: exec

Sustainable packaging key focus area in Suntory PepsiCo Vietnam growth strategy: exec

Suntory PepsiCo Vietnam is actively promoting various initiatives in sustainable packaging as a key focus area in its development strategy, says Do Thai Vuong, deputy general director in charge of external affairs and communications.

Companies - Mon, October 28, 2024 | 5:02 pm GMT+7

Nuclear power Vietnam’s choice to ensure sufficient energy: country top leader

Nuclear power Vietnam’s choice to ensure sufficient energy: country top leader

Nuclear power is the path for Vietnam to ensure sufficient electricity supply by 2045, Party General Secretary To Lam said Saturday at the ongoing National Assembly session.

Energy - Mon, October 28, 2024 | 4:33 pm GMT+7

Vietnam Electricity’s northern unit seeks German support in finance, technology

Vietnam Electricity’s northern unit seeks German support in finance, technology

Northern Power Corporation (EVNNPC), a unit of state utility Vietnam Electricity, is seeking further support from the German government and state-owned German development bank KfW to reach sustainable growth.

Energy - Mon, October 28, 2024 | 4:16 pm GMT+7

Leading UAE firms plan to expand investment cooperation in Vietnam

Leading UAE firms plan to expand investment cooperation in Vietnam

Four leading UAE corporations collaborating with Vietnamese firms have plans to expand investment cooperation in the country, executives told Prime Minister Pham Minh Chinh in Abu Dhabi Sunday.

Industries - Mon, October 28, 2024 | 3:53 pm GMT+7

Real estate developer Nam Long achieves only 3% of year's profit target

Real estate developer Nam Long achieves only 3% of year's profit target

Nam Long Group, a major real estate developer in southern Vietnam, recorded an after-tax profit of VND15.5 billion ($610,345) in the first nine months of 2024, reaching only 3% of its annual target.

Companies - Mon, October 28, 2024 | 3:00 pm GMT+7

Vietnam's largest private firm Vingroup launches VinVentures capital fund

Vietnam's largest private firm Vingroup launches VinVentures capital fund

Vingroup has launched a capital fund named VinVentures which is dedicated to investing in high-impact technology startups, with assets under management worth $150 million.

Finance - Mon, October 28, 2024 | 2:07 pm GMT+7

Vietnam’s Eximbank sees Q3 earnings triple on forex trading

Vietnam’s Eximbank sees Q3 earnings triple on forex trading

Ho Chi Minh City-based Eximbank says it earned a net profit of VND721.2 billion ($28.6 million) in Q3/2024, up 198.25% year-on-year, thanks to income from lending and forex trading.

Banking - Mon, October 28, 2024 | 12:25 pm GMT+7

Taiwan electronics firm Lite-On to start $690 mln Vietnam project soon

Taiwan electronics firm Lite-On to start $690 mln Vietnam project soon

Taiwan-based Lite-On Technology Corporation, a world-leading provider in optoelectronics and power management, is set to start its $690 million investment in Vietnam next month.

Industries - Mon, October 28, 2024 | 11:01 am GMT+7