Profit in the second quarter of 2024 of Masan exceeds the whole year of 2023

DNHN - Masan Group Corporation (HOSE: MSN) announced the unaudited financial report for the second quarter of 2024.

“Masan Consumer continues to record double-digit growth in both revenue and profit, while our other consumer platforms also achieve sustainable profitability – WinCommerce brought in profit in June and Masan MEATLife recorded positive operating profit (EBIT) for the second consecutive quarter. We are confident in completing the 2024 profit plan, growing both in the short term and medium term to create outstanding value for the company’s shareholders,” shared Dr. Nguyen Dang Quang, Chairman of Masan Group.

This result comes from the improvement of retail consumer business segments, the recovery of non-core activities/segments, and a reduction in net financial costs by 138 billion VND.

As of June 30, 2024, cash and cash equivalents increased to 21,977 billion VND (up 5,000 billion from 16,919 billion at the beginning of the year) thanks to improved free cash flow and cash flow from financial activities of the enterprise.

Net debt to EBITDA ratio for the past 12 months decreased to 3.3x, compared to 3.9x in Q4/2023, achieving the target of Net Debt to EBITDA ratio below 3.5x. Free cash flow for the past 12 months increased to 7,429 billion VND this quarter, up 71% compared to the same period last year.

Specifically about the situation of the segments in Q2/2024:

Masan Consumer achieved revenue of 7,387 billion VND, growing 14% compared to the same period. This growth was contributed by the Convenient Foods, Beverages, and Coffee segments with increases of 20.7%, 17.6%, and 16% respectively compared to the same period. MSC continues to maintain a high gross profit margin of 46.3%.

WinCommerce recorded revenue growth of 9.2% compared to the same period, reaching 7,844 billion VND across the network. This is the result of upgrading and improving WiN stores (targeting consumers in urban areas) and WinMart+ Rural stores (serving consumers in rural areas). These two store models achieved outstanding efficiency compared to the traditional model.

Masan Group stated that WinCommerce recorded a positive net profit in June 2024.

Masan MEATLife (MML) recorded an EBIT increase of 105 billion VND compared to the same period. This is the second consecutive quarter that MML achieved positive EBIT. The positive contribution to this result is the increase in revenue from the processed meat segment thanks to favorable factors such as the increase in chicken and pork prices and the reduction in feed costs.

Phuc Long Heritage (PLH) net revenue increased by 5.3% compared to the same period last year to 391 billion VND, thanks to contributions from 15 new stores opened since Q2/2023. The management continues to be cautious with 4 stores outside of WCM added to the system. PLH currently has 163 stores nationwide.

Masan High-Tech Materials (MHT) recorded an EBIT improvement of 193 billion VND thanks to the increase in APT and copper prices. The sale transaction of H.C. Starck Holding GmbH to Mitsubishi Materials Corporation for 134.5 million USD is expected to be completed before the end of 2024.

Accordingly, MHT is expected to record a one-time profit of approximately 40 million USD in the second half of 2024 and benefit from an increase in net profit of 20-30 million USD in the long term. The proceeds from the transaction will be used to reduce MHT’s debt. The divestment of HCS helps MHT be relieved from HCS’s debt obligations as of Q2/2024.

Techcombank - an affiliate of Masan, contributed 1,236 billion VND to EBITDA in Q2/2024, corresponding to a growth rate of 38.5% compared to the same period last year.

Accumulated for 6 months, Masan Group achieved 38,989 billion VND in revenue - up 4.5% compared to the first 6 months of 2023, profit after tax reached 1,425 billion VND - up 64% and net profit attributable to the parent company's shareholders reached 607 billion VND - up 90%.

P.V