Masan secures $5B in foreign investment focused on consumer retail building blocks

Michael Hung Nguyen, Deputy CEO of Masan Group, emphasized that strategic planning has been crucial in garnering investor confidence. One notable example was Masan’s acquisition of VinCommerce, now known as WinCommerce, in late 2019.

At the time, the company was struggling with a negative EBITDA of 7%. However, in just four years, Masan transformed the business, improving EBITDA to a positive 4%. WinCommerce (WCM), which operates the WinMart and WinMart+ chains, now manages nearly 3,700 supermarkets across 62 of Vietnam's 63 cities and provinces.

Customers shopping at WinCommerce. Photo courtesy of Masan

In the second quarter of 2024, WCM reported revenues of VND7,844 billion (US$316.1 million), reflecting a 9.2% year-on-year growth. EBITDA also rose by 11.1% to VND172 billion (US$6.9 million). Masan reported that WCM had achieved three consecutive months of profitability and is expected to maintain positive profits in the third quarter of 2024.

After a decade in operation, WinCommerce's annual revenue has stabilized between VND26-31 trillion (US$1.05-1.25 billion). "These numbers signal a promising sustainable growth roadmap for the future," said Michael Hung Nguyen.

Masan is also projected to exceed its annual profit targets for the latter half of 2024, buoyed by a recovering consumer market and supportive government economic policies. These factors are likely to contribute to profitability during the second half of the year.

Customers examining Masan products. Photo courtesy Masan

Masan's strategic initiatives have attracted significant foreign investment from global players such as KKR, TPG, and SK Group, who seek long-term collaboration with the company.

In a notable recent development, the Bill & Melinda Gates Foundation Trust also made an investment by acquiring over 1 million shares of Masan Consumer (MCH), valued at VND212 billion (US$8.5 million), as reflected in MCH's 2023 additional dividend payment.

According to the Ministry of Finance, capital mobilization on the stock market reached VND181,345 billion (US$7.3 billion) by the end of June, with VND18,966 billion (US$764 million) raised through stock offerings and VND5,877 billion (US$236 million) through bond offerings.

As both the domestic and global economies continue to recover, numerous businesses have successfully raised significant capital through the stock market.