Vietnam's Masan records rocketing profits in H1 as sales jump

By Toan Dao   August 3, 2016 | 01:00 pm GMT+7

Masan Group’s revenue surged nearly 84 percent to $850 million in the first half of 2016.

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Vietnam’s leading private firm Masan Group Corp. achieved net profit of VND1,863 trillion ($83 million) in the first six months of this year, up 104 percent on-year, according to a company report released earlier this week.

The increase in net profit has been attributed to higher sales value from January-June, which rose 83.8 percent on-year to VND19.141 trillion.

The company expects its net profit in the second half will also rise sharply as revenue in the second half usually accounts for approximately 60 percent of the whole year due to seasonal demand for its food and beverage products at the year-end, Masan said.

Revenue from food and beverages in the second quarter of this year surged to VND3,566 trillion, up 14.7 percent on-year, and increased by 28.3 percent compared to the first quarter. This increase was supported by new product launches. Masan Consumer expects to launch its first seasoning brand in Thailand in Q3 with the establishment of Masan Consumer (Thailand) Co., Ltd, Masan's first foreign subsidiary.

The subsidiary will help Masan expand its business in the Inland ASEAN market and deepen its relationship with Thai beer company Singha Asia Holding Pte Ltd, which announced it had acquired a 25 percent stake in Masan Consumer Holdings and a 33.3 percent stake in Masan Brewery for $1.1 billion last December.

A customer choosing a Masan product. Photo by VnExpress

A customer chooses a Masan product. Photo by VnExpress

In the first half, revenue from animal protein products jumped by 231.7 percent to VND11,051 trillion from VND3,332 trillion a year earlier. Masan Nutri-Science (MNS), the unit operating in animal protein business, increased sales value by 18.4 percent on-year in the second quarter. MNS’ net profit in the second quarter rose by 103.8 percent from the same period last year. The growth of the animal protein business was also backed by a strategic partnership with leading local meat producer Vissan and the establishment of Masan Nutri-Farm, which produces branded consumer meat.

Masan’s revenue from mineral production and processing in the first half stood at VND1,745 trillion, up 45.3 percent on-year. Masan Resources, the subsidiary operating in the segment, offset low tungsten prices in the period by boosting production volume by 14 percent.

Techcombank, in which Masan owns a 30 percent economic interest, achieved net profit growth of 73.1 percent in the second quarter. The bank targets gross profit of VND3.5 trillion this year.

Masan Group was founded in 1996 and is based in Ho Chi Minh City. Its key subsidiaries include Masan Consumer Holdings, Masan Nutri-Science and Masan Resources. Techcombank is its associate company. The group was listed on the Ho Chi Minh Stock Exchange in November 2009.