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Masan Group (MSN) records huge profits in first half of 2022
Masan Group Corporation on August 1 released its unaudited management accounts for the first half of 2022, revealing a rise in profits of 123 per cent.
Masan’s consolidated net revenue reached $1.54 billion in H1 2022, a decline of 12.5 per cent versus $1.76 billion in H1 2021, mainly due to the deconsolidation of the feed segment. Excluding 2021, net revenue grew by 9.1 per cent in H1 2022 on-year, driven by growth at Masan High-Tech Materials (MHT), and high-single digit growth at Masan Consumer Holdings (MCH).
The CrownX (TCX), Masan’s integrated consumer-retail ecosystem that consolidates WinCommerce (WCM) and MCH, grew net revenue on-year by 2.2 per cent to $1.11 billion in 1H2022.
Despite a challenging inflationary environment, TCX delivered $136.14 million in EBITDA in 1H2022, up 11.7 per cent, and $49.2 million in net profit after tax before minority interests, up 68.7 per cent on-year.
Meanwhile, WCM's revenue reached $612.6 million, down 1.1 per cent while EBITDA was $13.5 million, up 5.7 per cent on-year. WCM continues to expand its store count year-to-date, opening five supermarkets (WinMart) and 301 minimarkets (WinMart+) in 1H2022 to reach a total retail network of 127 WinMart and 2,873 WinMart+ locations.
Revenues of WinMart stores located inside Vincom malls increased 2 per cent on-year. Removing the high base effect, WinMart revenue grew by 1.4 per cent and 9.9 per cent on-year in H1 2022 and Q2 2022, respectively.
In addition, MCH also delivered solid H1 2022 results, achieving $528.68 million in net revenue, up 7.7 per cent on-year, and $122 million in EBITDA, up 11.5 per cent. Despite inflationary pressures, MCH grew its H1 2022 gross profit margin by 60 bps to 40.2 per cent vs. H1 2021 due to effective commodities hedging and higher average selling prices. EBITDA was margin maintained at 23.1 per cent in H1 2022.
In H1/2022, Phuc Long Heritage achieved $35.1 million in revenue, up 38.5 per cent on-year, and $5 million in EBITDA, an on-year decline due to heavy investment in kiosks which still require time to ramp up.
As a result of the deconsolidation of the feed business, Masan MEATLife’s (MML) revenue declined by 81 per cent on-year to $83 million in H1 2022, and was comprised entirely of sales of meat products.
However, Masan expects more favourable market conditions and a better distribution network to support the results of MML in H2 2022. MEATDeli and 3F Viet performance is expected to improve due to higher utilisation rates at MML’s processing facilities with product portfolio expansion and increased availability (growth of WCM network and other channels) driving higher revenues from Q3 2022 onwards.
Driven by rising commodity prices and strong demand, MHT delivered net revenue of $347.6 million in H1 2022, up 33.0 per cent on-year, EBITDA of $77.9 million, up 52.6 per cent on-year.
Meanwhile, Techcombank, Masan’s associated company, recorded $604.5 million in profit before taxes, up 22.3 per cent on-year. For detailed results, please refer to the bank’s website.
With the results, Masan's H1 2022 consolidated EBITDA grew by 17.5 per cent on-year to $314.2 million as EBITDA margin reached 20.4 per cent in H1 2022 versus 18.9 per cent in H1 2021, primarily driven by MHT increasing EBITDA by 52.6 per cent and TCX increasing EBITDA by 11.7 per cent on-year. On a reported basis, consolidated EBITDA was up 6.5 per cent in H1 2022 on-year.
Net profit after tax (NPAT) pre-mI grew by 122.7 per cent on a reported basis and 211.8 per cent on a like-for-like basis in H1 2022 to $133 million. NPAT Post-MI (after minority interests) grew by 163.3 per cent on a reported basis and 345.4 per cent on a like-for-like basis to $110 million in H1 2022.
Moving forward, WCM opens 800+ new stores in H2 2022. Among the new stores to be opened, 100 targeted be franchised stores. The new mini-mall store concept is underpinned by Masan’s Point of Life strategy to be launched in Q3 2022.
For the remainder of the year, MCH also focuses R&D efforts on a few key categories such as seasonings, convenience foods, and processed meat to generate big wins. Meanwhile, PLH accelerates the opening of high-performing flagship stores in H2 2022 to generate revenue and profit growth.
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