Masan Consumer transfers listing to HoSE, issues additional shares

Between July 2023 and 2024, Masan Consumer made two significant cash dividend payments totaling over VND7.1 trillion (US$287.8 million) for 2023, resulting in a combined dividend payout ratio of 100%. With the latest payment due on Oct. 4, this brings the total dividend ratio to 268%.

The company recently sought shareholder approval to distribute 2024 dividends using retained earnings, with a maximum advance of 100%. This means that for each share, shareholders could receive a maximum dividend advance of VND10,000 in 2024.

Starting with seasonings as its core product line, Masan Consumer now operates across eight major consumer goods industries in Vietnam. The company boasts five brands, each generating over VND2 trillion ($81 million) in revenue.

Masan Consumer's flagship brands include Chin-Su, Nam Ngu, Tam Thai Tu, Omachi, Kokomi, Vinacafé, Wake-Up Coffee, Wake-Up 247, Joins, and Chante.

Visitors check Masan Consumer products at the shareholders' meeting event. Photo courtesy of Masan

In addition to heavy investments in marketing and promotions, Masan Consumer focuses on research and development to rapidly introduce new products to the market.

According to Euromonitor, Vietnam's seasoning industry, including fish sauce, soy sauce, and chili sauce, recorded a compound annual growth rate (CAGR) of 5% from 2018-2023, with a 4% CAGR driven by rising average prices. However, Masan Consumer achieved a higher CAGR of 8% in seasoning sales, thanks to innovation and product quality improvement. This market is projected to grow by 7-9% from 2024-2026 and by 6% from 2027-2028.

In the convenience food industry, instant noodles represent one of the largest segments, valued at $1.3 billion. Masan Consumer increased its market share from 19% in 2018 to 21% in 2023. Despite the large market size, fierce competition continues to drive Masan Consumer to innovate and launch new product lines tailored to different segments and customer preferences.

The beverage sector, particularly energy drinks and bottled beverages, is another success story for Masan Consumer. Euromonitor reports that Vietnam's energy drinks market reached $750 million in 2023, with Wake-Up 247 capturing a 10.3% market share. As a pioneering brand in caffeine-containing energy drinks, Wake-Up 247 still has considerable growth potential.

In 2020, Masan Consumer acquired a 52% stake in Net Detergent JSC, marking its entry into the $3.9 billion home and personal care (HPC) market, long dominated by foreign brands. In 2023, the company reported VND1.8 trillion ($73 million) in HPC sales, reflecting an 18.3% increase compared to 2022.

HPC products are primarily sold through modern retail channels like WinCommerce, the country's largest distribution network, a strategy that helps to boost brand recognition and sales for Masan Consumer.

Chin-Su Chili Sauce has conquered Japanese cuisine for over four years. Photo courtesy of Masan

From 2017 to 2023, Masan Consumer grew at a rate 2.2 times faster than the market. According to a recent HSBC report, the company boasts high profit margins and stable revenue growth, outperforming its peers in the fast-moving consumer goods and packaged food sectors in the region, with a CAGR of 15.4%.

The report also highlighted Masan Consumer's growth momentum in 2023, with positive business results extending into the second quarter of 2024. The company posted a 14% increase in revenue and maintained a high gross profit margin of 46.3%.

Looking ahead to the second half of 2024, Masan Consumer plans to accelerate revenue growth through strategic initiatives, premiumization, and the restructuring of underperforming units to optimize profits. The company will also continue to advance its "Go Global" strategy, aiming to introduce Vietnamese flavors to consumers worldwide.