Masan Group, one of the three largest privately-run conglomerates in Vietnam in terms of market capitalization, has said its core consolidated NPAT Post – MI grew by 3.4 times year-on-year in the first half of 2018 to reach VND1.55 trillion (US$66.6 million).
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In the second quarter, Masan Group posted net revenue of VND9.18 trillion (US$395.5 million), up 11% compared to the previous quarter of VND8.2 trillion (US$353.2 million).
This helped the firm's consolidated net revenue in the first half of 2018 reach VND17.45 trillion (US$751.6 million), down 3.1% year-on-year, due to the pork price crisis lasting from the last half of 2017 to April 2018, according to the report.
Nevertheless, during this period, the group’s combined earnings before interest, taxes, depreciation and amortization (EBITDA) from its three subsidiaries climbed 38.4% year-on-year to VND5.14 trillion (US$222.2 million) from the VND3.78 trillion (US$163.4 million) in the same period of last year. The three subsidiaries are Masan Nutri-Science, Masan Consumer Holdings and Masan Resources.
Overall, Masan Group's NPAT post-MI reached VND3.03 trillion (US$130.5 million) in the six-month period, representing a whopping increase of 566% year-on-year. This included net one-time gains of VND1.47 trillion (US$63.32 million) primarily from the "deemed disposal" of the group's interest in Techcombank as a result of the bank 's recent equity issuances at a price higher than its carrying value.
Among the group’s subsidiaries, Masan Consumer Holdings (MCH) continued to be the growth engine for Masan during the first half of 2018, backed by strong revenue growth in core consumption products and new growth drivers in beverages, processed meat and beer portfolio.
MCH posted growth rates in revenue and EBITDA of 36.9% and 174.3%, respectively.
Followed by Masan Resources (MSR), of which revenue jumped to VND3.23 trillion (US$139.1 million) in the first six months of 2018, up 26.6% year-on-year. Higher tungsten prices, which were supported by China's environmental inspection and more stringent export quota policy, contributed to this result. Moreover, upgrades to the tungsten circuit have increased tungsten recovery from ore processed by 4.5% year-on-year.
Masan Nutri-Science (MNS), which manufactures and markets animal feed, was impacted by a pig price plunge in the first half of this year, but started to show signs of market recovery since the second quarter. The company posted net revenue of VND3.49 trillion (US$150.8 million) in the second quarter from VND3.2 trillion (US$138.8 million) in the first quarter.
By excluding MNS's net revenue, the group's net revenue in the second quarter climbed 16.9% over the previous quarter and the revenue growth in the January - June period increased by 33.6% year-on-year.
