Masan: Profit of 4Q2024 increased nearly 14-fold YoY

Ho Chi Minh City, 24 January 2025 – Masan Group Corporation (HOSE: MSN, “Masan” or the “Company”), today released its unaudited management accounts for the fourth quarter (“4Q2024”) and the full year (“FY2024”).

“In 2024, we prioritized developing a profitable, sustainable groupwide business model, that is now complete as WinCommerce (“WCM”) and Masan MEATLife (“MML”) turned profitable. The focus now is to increase our share of the consumer wallet by maximizing the synergies between our brand, retail and technology platform. Creating a one-tech and one-consumer (“Win Membership”) platform for GT and MT will lead to each business platform growing double digits in 2025 and beyond.”, said Dr. Nguyen Dang Quang, Chairman of Masan Group.

Net Revenue: In 4Q2024 and FY2024, Masan Group’s net revenue reached VND22,666 billion and VND83,178 billion, respectively. The topline growth was supported by sustained topline momentum from consumer-retail businesses and MHT’s fulfilled contractual obligation by counterparty, offset by MML’s strategic direction to rationalize chicken farm footprints.

EBITDA: EBITDA reached VND4,580 billion and VND15,921 billion in 4Q and FY2024, increasing by 44.6% YoY and 19.3% YoY. This uplift was driven by positive earnings growth momentum of all consumer-retail businesses.

Net Profit After Tax (“NPAT”): NPAT Post-MI of VND691 and VND1,999 billion in 4Q2024 and FY2024 grew by 1,282.0% YoY and 377.5% YoY, respectively. This was driven by strong profitability momentum across the consumer-retail businesses, VND365 billion lower in debt-incurring net financial expenses and VND89 billion in one-off gains from sale of HCS, offset by one-off expenses during MHT’s transformation period, and income from wholesale discount for feed input from MML’s farm business. Furthermore, MSN also recorded VND100 billion in one-off charitable donation expense and reduced profit by VND288 billion as TCB recorded a one-off expense of ceasing the contract with Manulife. The momentum of core businesses since the beginning of the year gave management confidence in the transformation of Masan’s consumer – retail platform.

4Q2024 earnings soared nearly 14 times year-over-year (“YoY”) to VND691 billion, with full-year profit achieving approximately 200% of the base-case guidance.

• WinCommerce and Masan MEATLife achieved profitability in FY2024, contributing VND993 billion in post-MI profit uplift. These businesses have transitioned to become key profit drivers for the Company moving forward.

• Masan Consumer Corporation (UpCOM: MCH) reported 4Q2024 and FY2024 revenue of VND8,942 billion and VND30,897 billion, respectively, reflecting 5.3% and 9.4% YoY growth. Healthy full-year performance was driven by premiumization in Convenience Foods (+8.4% YoY) and Seasonings (+7.2% YoY), innovations in Beverages (+14.2% YoY), and a strong 22.4% YoY increase in revenue from international markets.

• MCH improved its full-year gross margin to 46.6%, a 70bps increase from FY2023, supported by a favorable shift in portfolio mix towards higher-margin products, premiumization in Convenience Foods, and price adjustments across key sub-categories.

• Trade promotion spending was reduced to allocate resources to higher ROI initiatives such as new channel development and brand building, resulting in a 260bps decline in sales expenses as a percentage of revenue in 4Q2024. Distributor stock levels remained healthy at 15 days as of 4Q2024, even with the earlier-than-usual Lunar New Year.

• 4Q2024 revenue growth slowed to 5.3% YoY, reflecting a strategic decision to shift portions of innovation launches to 2025, aligning with expectations for a rebound in consumption trends.

• Full-year NPAT Post-MI margin remained at 25.3%, with NPAT Post-MI growing by 10.1% in FY2024. In 4Q2024, NPAT Post-MI increased slightly by 2.4% YoY, primarily impacted by approximately VND23 trillion dividend payout, which reduced financial income.

• WinCommerce (“WCM”) reported 11.8% and 9.7% YoY revenue growth in 4Q2024 and FY2024 to reach revenue of VND8,557 and VND32,961 billion, respectively. 4Q2024 performance continued to be driven by new store formats of WIN (catering to urban shoppers) and WinMart+ Rural (catering to rural shoppers), posting 10.4% and 12.5% LFL YoY growth. WCM reported positive NPAT Pre-MI of VND209 billion in 4Q2024, marking the second consecutive quarter with positive profit. Management will now focus on re-expanding the store network to be in line with its 5-year network guidance presented at Masan’s 2024 Annual Shareholder Meeting.

• As of December 2024, WCM operated 3,828 WCM stores, a net opening of 95 stores since 3Q2024. New store opening has re-accelerated due to sustainable LFL growth momentum and successful scale-up of new store formats, which enables WCM to cater to different consumer profiles and behaviors.

• Driven by 9.6% & 8.7% YoY LFL growth for minimart and supermarket and shrinkage improvement in 4Q2024, minimart and supermarket achieved 6.5% & 5.0 % store-EBIT margin respectively.

• WCM has achieved a notable improvement in operational efficiency, reducing the cash conversion cycle by 14 days in 4Q2024, primarily due to enhanced inventory management in stores and improved demand forecasting. This contributed to strong operating cash flow generation of VND2,202 billion in FY2024.

• Masan MEATLife (“MML”) delivered VND192 billion and VND565 billion YoY uplift to achieve NPAT Pre-MI of VND85 billion and VND25 billion in 4Q2024 and FY2024, respectively. This marked the second consecutive quarter of delivering positive NPAT Pre-MI.

• MML’s revenue increased by 24.0% and 9.5% YoY to VND2,204 and VND7,650 billion in 4Q2024 and FY2024. Fresh and processed Meat revenue increased by 15.4% YoY while farm revenue decreased by 7.3% YoY in FY2024 as MML rationalized its farming operations to increasingly shift focus to its B2C business portfolio. Fresh pork saw a 26% YoY uplift in daily sales per WCM store in FY2024.

• MML’s processed meat business surpassed VND200 billion in monthly revenue, accounting for 34.6% of MML’s revenue in FY2024 vs. 32.9% in FY2023. Innovations contributed VND538 billion in revenue in FY2024, the primary driver of the 12.9% year-over-year growth in processed meat. Porker utilization for processed meat increased from 5.4% in 4Q2023 to 6.7% in 4Q2024, aligning with MML’s strategy to boost overall gross margin and strengthen vertical integration.

• Phuc Long Heritage (“PLH”)’s net revenue grew by 11.5% and 5.6% YoY to VND417 billion and VND1,621 billion in 4Q2024 and FY2024, respectively. Main growth drivers were the opening of 33 new stores and successful store renovations.

• In FY2024, a cluster of 11 renovated stores saw a 13.4% improvement in dine-in average daily sales, compared to flat growth in similar but non-renovated stores. This represents PLH's latest effort to uphold its commitment to identifying the winning strategy.

• NPAT Pre-MI saw a more than 4x improvement in FY2024, with VND28 billion uplift in 4Q2024 and accumulation of VND97 billion for the full year. Net margin achieved 7.6% for FY2024.

• Masan High-Tech Materials (“MHT”)’s revenue saw an increase by 21.3% YoY and 1.7% YoY, amounting to VND3,868 billion and VND14,336 billion in 4Q2024 and FY2024, respectively.

• Despite operational challenges caused by the disruption of blasting services at Nui Phao Mining Company and the impact of Typhoon Yagi on mining productivity, which delayed ore accessibility in open areas, MHT demonstrated improvement in 4Q2024. Production of all products increased compared to the previous quarter.

• Copper revenues for FY2024 reached VND1,442 billion, marking a substantial improvement. Increased sales to local customers played a key role in enhancing the company's free cash flow and reducing outstanding debt.

• As part of its "Fit for Future" program, MHT finalized a new contract with a mining and blasthole drilling contractor, achieving up to a 10% reduction in mining costs compared to previous agreements. MHT is also evaluating similar cost optimization opportunities for other key contracts.

• On December 18, 2024, MHT announced the completion of the sale of 100% equity in H.C. Starck Holding GmbH (“HCS”) to Mitsubishi Materials Corporation for a purchase price of USD 134.5 million. The transaction included an off-take agreement for APT and tungsten oxide between MHT and HCS, ensuring long-term benefits for both parties and providing MHT with a solid foundation to maximize order volumes.

• Techcombank (“TCB”), Masan’s associated company, contributed VND732 billion in EBITDA in 4Q2024, representing a -21.0% YoY growth due to a one-off expense in ceasing the contract with Manulife, which reduced MSN’s NPAT by VND288 billion. For detailed results, please refer to the bank’s website.

• Balance Sheet Highlights:

• Cash and cash equivalent balance stood at VND19,226 billion as of FY2024, increased by 13.6% YoY compared to VND16,919 billion as of FY2023.

• Net debt / LTM (last 12 months) EBITDA stood at 2.9x, compared to 3.9x as of 4Q2023, achieving the target of Net Debt to EBITDA below 3.5x due to improvement in cash flow from business operations and capital injections from corporate funding activities.

• LTM Free Cash Flow (“FCF”) increased to VND9,580 billion as of FY2024, up 28.5% YoY.

2025 Guidance:

Subject to customary corporate approvals, macroeconomic conditions, and consumer market recovery, Masan forecasts FY2025 consolidated net revenue to range between VND80,000 billion and VND85,500 billion, representing 7% to 14% YoY LFL growth after adjusting for the deconsolidation of HCS. In FY2025, total consolidated revenue, excluding MHT, is expected to be within the range of VND74,013 billion and VND78,013 billion, representing 8% to 13% YoY growth. NPAT Pre-MI is projected to be VND4,875 billion to VND6,500 billion, reflecting a robust growth of 14% to 52% compared to VND4,272 billion in FY2024.

• Strategic pillars:

• Continued focus on double-digit top and bottom-line growth driven by core consumer businesses

• MCH continues to deliver double-digit revenue growth while maintaining high profitability.

• WCM focuses on profitable growth by accelerating NSO while maintaining strong LFL growth.

• Develop one-tech end-to-end operating system to drive operational efficiencies and strengthen synergies within MSN’s consumer-retail platform via its one-consumer platform WIN Membership and deepened collaboration between Masan brands and WinCommerce.

• Further deleverage to improve balance sheet and reduce financial expenses.

• Reduce ownership interest in non-core businesses following sale of H.C. Starck to simplify group structure and become a more focused consumer-retail platform.

• MCH aims to achieve double-digit revenue growth of 10% to 15% in 2025, reaching VND33,500 billion to VND35,500 billion by executing against strategic growth drivers and develop end-to-end digital supply chain “Retail Supreme”. The initiative aims to digitalize GT, supply & demand planning, production and distribution, improving supply chain planning, salesman productivity, and marketing ROI.

• Premiumization in Seasonings & Convenience Food: Extend market leadership in premium segment by expanding beyond instant noodles into ready meals such as self-heat ready meals (“Lẩu Tự Sôi”, “Cơm Tự Chín”) and handy hotpot (“Lẩu Cầm Tay”). Such innovations in Convenience Food to capture growth in out-of-home consumption trend.

• Innovations in Beverages & HPC: Extend WakeUp247 portfolio and win market share in RTD tea segment with Tea365 innovations; rationalize portfolio to focus innovations on Chante and Net while entering the personal care market.

• Go Global: Deliver 20%+ growth by focusing on key markets such as USA, South Korea, Japan and the EU with its seasonings, convenience food and instant coffee portfolio.

• Maintain healthy stock level at distributors during Tet’s One Masan campaign to target 15% growth target in 1Q2025.

• WCM is projected to achieve net revenue of VND35,600 billion to VND36,900 billion, reflecting growth of 8% to 14% YoY and achieve full year NPAT positive. This will be driven by store network expansion, accelerated LFL topline growth.

• Re-accelerate NSO with 400-700 minimarts for 2025 with a focused regional opening strategy.

• Accelerating LFL growth for minimarts via winning assortment, deepened collaboration with Masan brands to create unique assortment & innovation launches, and personalized promotion & marketing to WIN Members.

• Achieving high-single-digit LFL growth for supermarkets via successful renovation to new format: WMT Urban and WMT Rural.

• Piloting new version of WIN Membership with targeted promotions & benefits for consumers beyond fresh Membership price in 1H2025, followed by nationwide launch in 2H2025.

• Piloting agent banking to crystalize Point-of-Life strategy.

• MML is expected to generate revenue of VND8,250 billion to VND8,749 billion, reflecting 8% to 14% YoY growth. This will be achieved through its continued journey to becoming a processed meat company and deeper collaboration with WinCommerce.

• Improving porker value to 10 million VND per porker equivalent to ~10% growth YoY by maximizing value of leftovers.

• Continuing investment in processed meat with target sales contribution of 36-37% of MML’s sales mix.

• Building "Meat Corner" inside WCM where MML's meat brands will be present, targeting to drive the share of processed meat sales in WCM from 16.6% to 20% in FY25, with a long-term goal of reaching 40%.

• PLH aims to achieve a growth range of VND1,910 billion to VND2,200 billion, representing a YoY growth of 18% to 36%, by driving LFL growth and improving profit margins.

• Improving SSSG with local store marketing, national promotion, joining WIN Membership, and other seasonal projects.

• Rebranding and roll out new store concepts to redefine its value proposition and re-engage with both core and new customers.

• MHT anticipates an LFL topline growth of 3% to 19% YoY following the deconsolidation of HCS, with a revenue target ranging from VND6,487 billion to VND7,487 billion, driven by earnings improvement supported by higher commodity prices.

• Scaling up mining operations and improving recoveries.

• Continuing rationalization of operating costs.

• Maximizing sales of copper and byproducts.

• Exploring strategic alternatives to deleverage.