On June 3, Masan Consumer stock price (UPCoM: MCH)were at 203,500 VND, propelling the company's market capitalization to over 146 trillion VND. This substantial valuation positions Masan Consumer among the top 20 most valuable enterprises on the stock exchange.
Sustaining the growth momentum
The report of Masan Consumer Holdings (MCH) revealed an increase in both revenue and profits, indicating the company's robust performance amid a slowly recovering consumer market. In the first quarter of 2024, MCH's net revenue rose by 7.4% year-over-year, reaching VND 6,727 billion. The Convenience Food, Beverages, and Home Personal Care (HPC) segments spearheaded this growth, with increases of 10.3%, 23.4%, and 15.2% respectively compared to the same period in 2023.
The gross profit margin of MCH has increased significantly, approaching 50%. EBITDA was 25.3% in the first quarter, and the gross profit margin was 45.9%, up 400 basis points fr om the record 41.9% in the same period previous year.
The company's NPAT Pre-MI increased by 31.5% from VND 1,144 billion in the first quarter of the previous year to VND 1,505 billion by the end of the first quarter of 2024. Masan Consumer attributed these results to effective input material cost management, strong brand presence, and efficient operations.
Additionally, MCH maintains healthy inventory levels across many product lines, indicating a robust recovery in consumer demand following a period of significant macroeconomic fluctuations both domestically and internationally.
Capitalizing on opportunities in the consumer market, Masan Consumer consistently innovates and enhances its products to cater to the increasingly diverse needs of customers. In 2023 alone, MCH introduced over 60 new innovations to the market. Among these are the Omachi Self-boiling Hot Pot, designed for young people who are active and daring; the EnerZ energy drink, which has 70% less sugar; and the BupNon Tea365, a new range of tea products that has shown promising early results. Tea365, which went live in November 2023, brought in VND 106 billion during the first quarter of 2024, with a nearly 60% store restocking rate.
Masan Consumer is referred to as the "heirloom diamond" of the Group by Nguyen Dang Quang, Chairman of the Board of Directors of Masan Group. In 2023, the company set a new record with a profit after tax of VND 7,195 billion, marking a 30% increase compared to 2022.
Owning the “big brands”
The recent surge of Masan Consumer stock price can be attributed to positive developments, including the company's business performance and growth strategies announced at the 2024 General Meeting of Shareholders. MCH currently boasts five major consumer goods brands, each generating sales of approximately 150-250 million USD and enjoying widespread market presence. These brands—CHIN-SU, Nam Ngu, Omachi, Kokomi, and Wake-Up 247—have become household names for millions of Vietnamese people, contributing to 80% of MCH's domestic revenue over the past seven years. From 2017 to 2023, MCH's growth rate was 2.2 times that of the overall market, with more than 98% of Vietnamese households owning at least one MCH product.
Additionally, the Q1 business results indicate that MCH remains on a robust growth trajectory this year, with revenue rising by 7.4% compared to the same period in 2023, reaching VND 6,727 billion. Compared to the same period in 2023, Masan Consumer's gross profit margin increased by 400 basis points to a robust 45.9% in Q1. The company's executives also talked about the "Go Global" strategy, which aims to increase the company's current $8 billion USD valuation to $32 billion USD by broadening product lines and entering other markets.
Be among the top large-cap enterprises
With its recent strong increase of Masan Consumer stock price, its market capitalization has surpassed 146 trillion VND as of June 3. This valuation exceeds that of its "parent company," Masan Group ("MSN"), which stands at over 110 trillion VND based on the same day's stock price. Despite being listed on UpCOM, this significant market capitalization places MCH among the top enterprises on the stock exchange. The current valuation of Masan Consumer stock price is higher than many "big caps" on HOSE, including Vinamilk, Sabeco (SAB), Military Bank (MBB), Mobile World (MWG), and Vincom Retail (VRE).
MSN is MCH's major stakeholder, owning 68.1% of the company's stock, as well as several other well-known consumer brands in the consumer ecosystem, including WinCommerce, Masan MEATLife, WinEco, Phuc Long Heritage, and Masan High-Tech Materials. Despite having a smaller current market capitalization than MCH, MSN's stock price does not completely reflect the company's inherent value and valued assets. Moreover, MCH has numerous plans in place to sustain its growth momentum.
Promoting Vietnamese cuisine
Masan Consumer has successfully established robust brands with annual revenues ranging from $150 million to $250 million, contributing to 80% of the overall revenue growth. The company is now gearing up to confidently embark on a global journey as a "Vietnamese culinary ambassador," aiming for a vision wh ere "Every Vietnamese family, every Masan product. Every family in the world, at least one Masan product." For instance, CHIN-SU has evolved into a billion-dollar brand through premiumization, capturing over 65% of Vietnam's fish sauce market. Since 2007, the brand has continuously elevated its quality, flavor, and packaging, expanding into the premium seasoning category. The initial achievements of the "Go Global" initiative—bringing Vietnamese cuisine to the world's 8 billion consumers—include CHIN-SU securing the top position on Korea's Coupang e-commerce platform and ranking among the top 10 on Amazon in 2023.
Omachi's strategy to ascend to a billion-dollar brand involves elevating the instant noodle experience from a mere survival meal to a delectable, nutritious, and comforting culinary delight. Between 2017 and 2023, Omachi witnessed a doubling in meals served, reaching an impressive 544 million annually, highlighting its unique appeal among consumers seeking premium experiences. With this momentum, Omachi aims to broaden its market scope from a 1 billion USD segment in the Instant Noodles industry to a 17 billion USD realm in the Restaurant Meal Replacement (RMR) sector, facilitated by the launch of its Self-boiling Hot Pot in 2023, with Omachi self-cooked rice on the horizon.
In 2024, Masan Consumer anticipates net revenue to range between VND 32,500 billion and VND 36,000 billion. Alongside bolstering key products and ventures, the company is actively cultivating innovative capabilities and refining processes to optimize its forthcoming FMCG portfolio.