On the morning of April 25, Masan Group Joint Stock Company (stock code MSN) held its 2024 Annual General Meeting of Shareholders with 7 presentations. Two member companies Masan Consumer (MCH) and Masan MEATLife (MML) co-hosted today.
Mr. Nguyen Dang Quang – Chairman of the Board of Directors of Masan said: “Masan Consumer – Masan’s heirloom diamond is a source of pride, deeply imbued with the principles of moments of concern, passion and sweetness in those moments. Serving consumers. It is also the ambassador of Vietnamese cuisine that enhances Masan’s journey to the world, once again working with Vietnamese consumers to find ways to take solid steps in the journey of bringing Vietnamese cuisine. to 8 billion consumers in the world with strong brands, Love brand”.
Mr. Quang said, Masan Group decided to IPO Masan Consumer Joint Stock Company (Masan Consumer Holdings).
Mr. Nguyen Dang Quang – Chairman of HDDQT Masan Group
Danny Le – General Director of Masan Group said that by 2024 WCM plans to open 4,000 stores with the goal of 90% of these stores breaking even EBITDA. In 2019, when Masan acquired the retail chain, the overall result was still a loss. Mr. Danny Le evaluated the results after 4 years as very encouraging.
In the first quarter of this year, consumer demand recovered and WCM opened an average of 1.6 stores/day, aiming for 75% of stores to break even EBITDA.
Mr. Danny Le said, Phuc Long’s business results are not as expected, so it is in the process of streamlining and closing some ineffective stores to optimize. Pharmacies in retail chains will also implement such measures.
MCH’S NEW PILLAR: GET OUT OF HOME
At the Congress, Mr. Truong Cong Thang – Chairman of the Board of Directors of Masan Consumer shared that MCH’s future path is to serve the great unmet needs of consumers. MCH has gone from the kitchen corner to products in the refrigerator, products in the living room, and bathroom. Coming here, the 5th pillar of MCH will be Out-of-Home such as tea, coffee, filtered water, self-boiling hot pot, snacks…
“The journey of the past 20 years may have been very strong with the presence in the family, but with new consumer trends, out-of-home is the market we are aiming for” – Mr. Thang said.
Besides, Mr. Thang said, the scale of the FMCG market that MCH serves (including spices, convenience foods, bottled beverages, home and personal care) is worth 8 billion USD. MCH still has a lot of work to do, competing with other companies to target the Vietnamese FMCG market of 32 billion USD.
What will MCH do in the next 10 years? That is to build a new FMCG model with the following strategies: (1) Build 6 billion USD Big Brands to help consumers stay safe when spending money to buy products, (2) Bring Big Brands and Vietnamese cuisine to the world. world, telling the world about the appeal of Vietnamese culture and cuisine, (3) Masan Consumer’s revenue and profit target is at the top of Southeast Asia.
Just like launching Omachi Self-boiling Hot Pot at last year’s Shareholders’ Meeting, Masan launched Self-cooked rice with pan-fried salmon in Teryaki sauce.
WCM WANT TO DO A COMPETITIVE PRICE STRATEGY
WCM leaders said they are focusing on “How to change customers’ price prejudice when purchasing goods at WCM”. Up to now, WCM has been considered not competitive in price with other retail systems. Since the end of 2023, WCM has rebuilt its price strategy, “assessing” its total price communication efforts to customers through employees in stores, as well as communicating on digital platforms about product prices. chemistry in WCM. Even in the rural market, WCM has products that compete in price with outside stores.
“By the end of 2024, WCM’s price image will completely change” – company leaders said.
WCM aims to have positive after-tax profit in the first quarter of 2025.
PROFIT PLAN FOR MAXIMUM GROWTH 115%
Regarding business plan, Masan plans to do business in 2024 with revenue in the range of VND 84,000 billion – VND 90,000 billion, increasing by 7.3% – 15% respectively. Core net profit before allocation to minority shareholders (core NPAT Pre-MI) is expected to range from VND 2,250 billion to VND 4,020 billion, an increase of 31% – 115% compared to 2023 results. The company expects will not pay dividends in 2024.
The CrownX expects net revenue to be in the range of 63,000 – 68,000 billion VND, an increase of 9-18% compared to 2023. Of which, Wincommerce (WCM) expects net revenue from 32,500 – 34,000 billion VND, up 8-13% respectively.
MCH expects net revenue from 32,500 – 36,000 billion VND, growth contributed mainly by the Convenience Food, Beverage and home and personal care industries. PLH (Phuc Long Heritage) expects revenue from 1,790 – 2,170 billion VND, an increase of 17-41$ and plans to open 30-60 new stores outside WCM, focusing on Hanoi and Ho Chi Minh City.
MML expects revenue from 7,100-7,800 billion VND, an increase of 2-12%. In which, revenue from branded pork and processed meat is expected to increase from 15-28% and from 12-33% over the same period.
MHT (Masan High Tech Material) is expected to receive revenue from 15,000-15,800 billion, an increase of 6-12%. MHT has hired a new blasting contractor to put it into operation in the first quarter of 2024.
In 2023, the business will achieve revenue of 78,252 billion VND, an increase of nearly 3% compared to 2022. However, profit after tax will only reach 1,870 billion VND, a decrease of more than 60%. The company submitted to shareholders a plan to not pay dividends in 2023.
Regarding the stock issuance plan, Masan plans to issue up to 10% more outstanding shares to offer to strategic shareholders at a price not lower than book value. Expected time is in 2024 or before the 2025 General Meeting of Shareholders. Shares will be restricted from transfer within 1 – 3 years.
The business is considering two options: (1) offering common shares privately or (2) offering dividend preference shares. With the plan to sell preferred dividend shares, investors will receive 0% for the first 6 years from the date of issuance. From the 7th year, the fixed dividend is 10%/year. In addition to the fixed portion, preferred shares still receive additional dividends equal to common shares (if any).
In addition, Masan also plans to issue ESOPs to employees with a maximum amount of 0.5% of outstanding shares, priced at 10,000 VND/share. Implementation time is in 2024 or the first 4 months of 2025.
Regarding the remuneration of the Board of Directors, Masan submitted to shareholders for approval not to pay remuneration to members of the Board of Directors in 2024. The budget for operating expenses of the Board of Directors is no more than 5 billion VND.
SOME NOTABLE RESULTS IN 2023
With 5 sales models, Wincommerce will achieve revenue of 30,054 billion VND in 2023. Accounting for the largest number is the Mini store model in urban areas with 1,886 stores, while Mini stores in rural areas also have up to 1,190 stores. row.
From mid-2023, daily revenue of urban WIN (Destination All-in-One) stores tends to surpass the same period in 2022.
Branded meat is one of the most attractive points at Wincommerce points of sale. Thanks to narrowing the price gap with traditional markets through exclusive prices for WiN Members, output increased by 25.7% in 2023 compared to the same period last year, and gross profit margin also increased from 3.2% in 2022 to 11.6% in 2023.
Revenue of Masan’s farm pig, branded pork, chicken and processed meat segments all increased this year.
Tags: Launching selfcooked rice outofhome pillar Wincommerce compete price aiming NPAT Q12025
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