Masan Group Corporation has set a target of double-digit growth in the second quarter of 2023 after announcing promising business results in the first three months of this year.

Its net revenue reached VND18,706 billion between January and March, an increase of 2.8 percent over the same period last year.

“Not everyone may understand the Masan Way and how we are building the next version of our consumer platform," Nguyen Dang Quang, chairman of Masan, said during the release of its first quarter’s unaudited management accounts on Friday.

“I implore you to listen to our CEO's annual shareholder presentation as it clearly lays out what we are doing to become the consumer platform of choice."

From January to March, Vietnam experienced a slow start with its gross domestic product growth falling to 3.3 percent, the lowest in the last five years.

The consumer price index rose to 4.2 percent, indicating persistent inflationary pressures. 

Meanwhile, the country’s import and export both reported declines of 14.7 percent and 11.9 percent year on year, respectively, signaling a reduction in the demand for Vietnamese products.

Despite the number of tourists increasing 30 times compared to the same period last year, the recovery of the tourism sector was slow and in the first quarter, the number of international tourists was only 60 percent of that during the pre-COVID period.

As a result, consumers are more concerned about their income and employment prospects, leading to a downturn in sentiment and demand.

The concern was reflected in the business performance across the consumer industry.

As market liquidity increased and interest rates began to soften in March, the management anticipated that the interest pressures would decrease in the upcoming quarters.

In general, Masan’s operating results remained resilient despite a challenging macro-environment.

The net profit was further dragged down by higher interest expenses of VND369 billion.

The management will focus on improving the bottom line across the business portfolio and expects tailwinds for the banking sector and declining interest rates, which will enhance overall profitability in the second half of 2023.

The CrownX, Masan’s integrated consumer-retail platform that consolidates WinCommerce (WCM) and Masan Consumer Holdings (MCH), recorded a slight top-line decline in a challenging macro-environment and weakened consumer sentiment, delivering revenue of VND13,300 billion, down 1.1 percent year on year.

WCM remained resilient during this challenging time, with its net revenue reaching VND7,335 billion, up 0.5 percent year on year.

WCM opened 55 new WinMart+ and one new WinMart in the first quarter, totaling 3,442 locations nationwide for both minimarts and supermarkets. 

Due to the transfer and deconsolidation of processed meat to Masan MEATLife, MCH’s net revenue decreased 2.8 percent to VND6,265 billion compared to VND6,448 billion in the first three months of 2022.

On a like-for-like basis, which excludes the revenue of processed meat, MCH's net revenue increased 2.6 percent.

MCH has maintained healthy stock levels across different categories, achieving VND1,300 billion versus VND2,000 billion by the end of last year’s first quarter. 

Regarding the Phuc Long Heritage, the flagship turnover recorded VND311 billion, a climb of 11.8 percent.

For kiosks, Masan is testing the 'Hub-and-Spokes' model with some positive initial results. 

Masan MEATLife’s revenue, meanwhile, jumped to VND1,600 billion, up 71.8 percent from VND931 billion in the first quarter of 2022.

Masan High-tech Materials saw its revenue down 3.6 percent due to negative impacts from lower feed grade impacting Nui Phao Mining Company’s production volumes and H.C.Starck’s higher base effect.

Techcombank, Masan’s associated company, contributed VND961 billion in EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) from January to March, representing a decline of 18.4 percent year on year.

(US$1 = VND23,495)

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