Why Masan Consumer is set to return to growth trajectory in Q4/2025

Masan Consumer (UPCoM: MCH) is expected to return to its growth trajectory in the fourth quarter of 2025 after a comprehensive restructuring of its distribution system.

According to a Vietnam Supermarket and Hypermarket Industry report (Insight Asia, September 2025), Vietnam’s fast-moving consumer goods (FMCG) market is showing a clear recovery following a slowdown during 2023-2024.

The total retail market size is projected to reach $309.7 billion in 2025, with modern retail channels accounting for 27% of total sales, up sharply from 15% in 2005. Notably, 62% of Vietnamese consumers now shop at supermarkets and modern stores every week, reflecting both stable purchasing power and a shift toward modernized consumption habits.

Against this backdrop, Masan Consumer, a subsidiary of Masan Group (HoSE: MSN), has adopted a new strategic direction by launching a nationwide Direct Distribution model to better control its supply chain, data, and point-of-sale efficiency.

Q3/2025 results: Signs of a clear recovery

In Q3/2025, Masan Consumer reported revenue of nearly VND7.52 trillion ($285.66 million), down 5.9% year-on-year, reflecting the initial phase of implementing the Direct Distribution model in its traditional trade channel. This strategic transformation typically takes three to six months to stabilize and optimize operations.

Despite the short-term decline, the company showed clear improvement as the revenue contraction narrowed significantly compared with Q2 (down 15.1%), signaling a recovery trend. Modern trade sales rose 12.5%, while exports increased 14.8% year-on-year - evidence of Masan’s adaptability amid a restructuring FMCG market.

At a recent investor meeting, Masan Consumer’s management noted that after rolling out the Direct Distribution project nationwide, operational indicators have improved markedly, and the company expects to return to positive growth from Q4/2025.

By the end of Q3, the company’s active sales points averaged around 345,000, up 40% year-on-year; salesforce productivity rose 50%; and distributor inventory days dropped to 15 (down eight days year-on-year). These metrics underscore the early effectiveness of the new model and its potential to drive sustainable growth ahead.

“Direct Distribution” – Masan Consumer’s new growth engine

The Direct Distribution model, launched nationwide in 2024, connects Masan Consumer directly to hundreds of thousands of retail outlets, eliminating intermediaries and enabling real-time control of market data.

Unlike the traditional distribution model, this approach allows the company to capture consumer demand shifts instantly, optimize production-inventory-promotion cycles, and enhance the performance of each sales point. It also fosters a two-way relationship with small retailers - the frontline partners serving end consumers.

Explaining the initiative, Danny Le, CEO of Masan Group, said the project transforms three key areas: people, technology, and connectivity. The company has restructured its salesforce into regional business representatives, adopted new technology platforms with intelligent order recommendations, and enabled direct connectivity between sales reps and retail points.

According to Masan Consumer’s latest report, the model is delivering strong results: average SKUs per order rose to 3.4, up 50% year-on-year, while early rollout regions recorded high single-digit sales growth. Core brands such as CHIN-SU, Omachi, Wake-up 247, and Chanté achieved volume and revenue growth outpacing the overall market - reflecting the new system’s flexibility and effectiveness.

From Q4/2025, Masan Consumer plans to complete the nationwide rollout of its Direct Distribution model, aiming to return to positive revenue growth and improve margins through a more optimized channel structure. The company will also continue to innovate its product portfolio, focusing on seasonings, convenient foods, and beverages, targeting premium segments and international standards.

In parallel, Masan Consumer is advancing its premiumization strategy across FMCG categories and leveraging its digitalized distribution network to reach consumers more efficiently.

The company is also accelerating plans for an IPO and listing on the Ho Chi Minh City Stock Exchange (HOSE) to strengthen transparency and broaden access to global investors. According to chairman Nguyen Dang Quang, the integration of Masan’s WiN membership program with the WinCommerce retail system and Masan Consumer’s Direct Distribution platform will create a unified consumer-retail ecosystem serving over 100 million Vietnamese people - a solid foundation for sustainable growth and long-term shareholder value creation.

About Masan Consumer (UPCoM: MCH)

Masan Consumer, a subsidiary of Masan Group (HoSE: MSN), is one of Vietnam’s leading consumer goods and retail companies. With a mission to serve consumers, the company continuously innovates to deliver high-quality products that meet the essential needs of millions of households.

Its diversified FMCG portfolio spans seasonings, convenient foods, beverages, and home & personal care, with household brands such as CHIN-SU, Nam Ngu, Omachi, Kokomi, and Wake-up 247. Masan Consumer’s products are present in over 98% of Vietnamese households and exported to more than 26 countries, reinforcing its position as one of the most profitable FMCG companies in the region.