Vietnam’s Masan MEATLife posts $4.14 million in Q3 after-tax profit

Masan MEATLife (MML), a subsidiary of Vietnamese consumer retail giant Masan Group, recorded net profit after tax and pre-minority interest (NPAT Pre-MI) of VND105 billion ($4.14 million) in the third quarter of 2024.

It was the first quarter since 2023 that the company had posted a net profit.

The company’s Q3 financial statement showed a 13.6% year-on-year increase in revenue from its meat segment, which includes pork, chicken and processed meat.

Growing market

The pork and chicken segment, valued at over $15 billion, is the largest in Vietnam's food and beverage industry. With population nearing 100 million and steadily rising average incomes, the demand for clean, traceable meat is growing significantly in Vietnam.

With domestic production yet to meet demand, the company sees substantial opportunities for investment in the livestock sector.

And despite the potential, Vietnam’s meat market remains largely unbranded, with over 90% of pork products lacking brand recognition.

Consumers increasingly prioritizing traceability opens up opportunities for MML, a leading producer of branded meat in Vietnam, to set new standards in high-quality, safe meat production and offering it to the market at reasonable prices.

From a leading animal feed supplier in the country, MML has successfully transitioned to branded meat production following a consumer goods model.

Since 2023, the company has focused on processed meat, coming up with two brands – Heo Cao Boi and Ponnie, besides MEATDeli, which have already established a significant market presence.

The growing popularity of MEATDeli, recognized for its quality, has led consumers to explore more products under the brand.

High-quality processed meat items, including pork pie, sausage, pork floss, and dried chicken, have received positive consumer feedback.

Notably, the two loved brands – Ponnie and Heo Cao Boi – have captured around 50% of the sterilized sausage market share.

Positive performance

In Q3, MML reported an EBIT (earnings before interest and taxes) increase of VND43 billion ($1.7 million) compared to the same period last year and a VND105 billion rise in NPAT Pre-MI.

This marked the third consecutive quarter of positive EBIT and the first positive NPAT Pre-MI since 2023.

Senior executives of the company said the positive performance was driven by rising sales in processed meat, supported by higher market prices for chicken and pork.

While processed meat sales rose by 13.6% year-on-year, farm revenue declined by 28.2% as MML restructured its poultry segment, focusing on the end value chain, they said.

Overall, MML's revenue grew by 1.7% year-over-year to VND1.94 trillion ($76.5 million) in Q3.

By integrating into the WIN membership program in partnership with WinCommerce, the groceries retailing arm of Masan Group, MEATDeli products are now available at over 3,700 WinMart supermarkets and WinMart+/ WIN stores, greatly enhancing access to consumers and contributing to impressive sales growth, the executives added.