Dr Nguyễn Đăng Quang, chairman of Masan Group, lays out the company’s five-year plan at the AGM of the company and its two subsidiaries held in Lào Cai on April 1. — Photo courtesy of MSN
SAPA — Masan Group Corporation (HOSE: MSN) targets net revenues of VNĐ92-102 trillion (US$3.98-4.4 billion) this year, an increase of 19 – 32 per cent from last year, and profit after tax and minority interest of VNĐ2.5-4 trillion ($108.3-173.3 million), a rise of 103– 224 per cent.
It targets an earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin of 15-20 per cent and NPAT margin of 3-5 per cent due to a positive EBITDA margin for VinCommerce (VCM) and an improving EBITDA margin for Masan MEATLife (MML).
The company and its two subsidiaries, Masan Consumer Holdings (HNX-UPCoM: MCH), and Masan MEATLife (HNX-UPCoM: MML), held their annual general meeting on April 1 in Sapa, Lào Cai Province.
The AGMs, which had the theme ‘To the Indochina summit,’ coincided with the 25th anniversary of Masan Group.
In his opening remark, Dr Nguyễn Đăng Quang, chairman of Masan Group, spoke about the company’s vision: “Exactly 25 years ago Masan began its journey with the belief that serving consumers was the best way to succeed in business.
“Technology and innovations are the drivers of breakthrough growth and superior added values. At the same time, we take pride in Vietnamese values, and aspire to be a part of Việt Nam’s pride.
“The entry into modern retail has increased our addressable market from 1 per cent of the consumer wallet to nearly 25 per cent.
“Our five-year plan is to develop a winning model to serve 30-50 million consumers and unlock significant value for our consumer value chain. This means consumers will pay 5 – 10 per cent less for essential goods, manufacturers and agricultural producers will earn 5-10 per cent more and our retail franchisees will make 5-10 per cent more profit.”
The Masan management presented a transformative development plan and key directive actions for 2021 – 25 at a pivotal time after 25 years when the company continues to write new chapters in its journey of “serving consumers.”
Dany Le, CEO of Masan Group Corporation, shared the strategic roadmap to build the Point of Life (POL) foundation, aiming to bring more benefits to consumers, manufacturers, and small and medium-sized enterprises.
By modernising general trade retail, accelerating offline-to-online integrated commerce between modern trade retail and e-commerce platforms, and at the same time driving financial inclusion across Việt Nam, Masan aims to serve 30 – 50 million consumers on one single platform (one-stop shop) to meet consumers’ everyday essential needs, he said.
In 2020 Masan established The CrownX, the leading integrated consumer-retail platform that currently consolidates Masan’s interests in MCH and VCM.
Some products of Masan Consumer Holdings. — Photo courtesy of the company
MCH is one of the largest branded consumer goods company in Việt Nam with a focus on power brands and innovation, while VCM is the country’s largest modern trade grocery retailer with a nation-wide network.
The acquisition of VCM has already delivered significant synergies to MML’s businesses, as MEATDeli products are now available at more than 1,200 VinMart+ minimarkets.
Trương Công Thắng, CEO of The CrownX Corporation, shared the 2021 – 25 vision of the company.
The CrownX is where a retail network (VCM), an FMCG platform (MCH), a branded meat product (MML), and a financial services provider (Techcombank) integrate and synergise to create an inter-connected business platform, he explained.
Thus, it is considered the first chapter in the ‘Point of Life’ journey that is taking shape at Masan, he said.
With a consumer-centric model, The CrownX with its Point of Life is expected to create positive transformations to meet the big needs of consumers in the most holistic way, he said.
Through it, Vietnamese consumers have access to the best products and services, can shop for grocery that truly is the very best of fresh at prices 5 – 10 per cent lower than the market, he said.
High-quality products from manufacturers and farmers will be distributed widely and efficiently, cutting intermediary costs, and reaching consumers faster, and retailers are offered partnership and support to increase their profits.
The CrownX targets achieving $8 billion in net revenues by 2025, $3 billion from MCH and $5 billion from VCM, owning the 25 top consumer brands, serving 30-50 million loyal customers, and generating 10 per cent of its revenues online, he added.
Last year MSN’s consolidated net revenues were VNĐ77.2 trillion ($3.34 billion), 106.7 per cent up from 2019, and the net profit attributable was VNĐ1.23 trillion ($53.4 million).
MCH reached a significant milestone as net revenues hit $1 billion for the first time in 2020, while net revenues and EBITDA grew by 27.2 per cent and 22.4 per cent.
MML’s net revenues were VNĐ16.1 trillion ($698.4 million), 16.8 per cent higher than in 2019, while the EBITDA margin was 11.7 per cent. — VNS