The maintenance and expansion of stores helped WinMart+ scale to reach more than 3,000 points of sale, sharply increasing market share in the nationwide chain of small supermarkets/convenience stores.
Masan Group (MSN) has just announced third-quarter net revenue of more than 19,500 billion VND, down 17% year-on-year due to the absence of the animal feed segment. Excluding this impact, the group’s revenue only decreased slightly by 2%.
The bright spot was that the cost structure was also lowered, helping the gross profit margin to improve strongly from 25.8% in the same period to 27.8%, which means the gross profit reached 5,424 billion VND.
Operating expenses remained high, causing EBITDA (profit before tax, depreciation and interest) to drop 22% to 3,486 billion VND. Plus large financial expenses pushed net profit to 543 billion VND, halved over the same period and the lowest level in 6 quarters.
However, in the first 9 months of the year, the group’s revenue still increased by nearly 5% to over 55,500 billion VND (excluding the animal feed segment). Profit after tax for shareholders of the parent company reached nearly 3,120 billion VND, up 47% over the same period.
For the retail segment, the group has converted 30 WinMart+ stores into integrated WIN stores. The new model saw an approximate 20% increase in revenue/m2 during the pilot period, mainly due to increased customer traffic. The next plan is to open 80-120 WIN stores by the end of the year.
Masan also launched a loyalty program with 300,000 people signing up after 1.5 months. WIN members contributed nearly 60% of the revenue of WIN stores, and the spending level was also 2.3 times higher than that of unregistered customers.
This group has opened 477 WinMart+ stores since the beginning of the year and brought the total number to 3,049 points of sale. Thus, in terms of selling points alone, WinMart+ has increased its market share from 40% at the end of 2021 to 48% at the end of the third quarter, leading the chain of small supermarkets/convenience stores nationwide.
For Phuc Long, this beverage chain recorded revenue of 1,143 billion VND in revenue and 199 billion VND in EBITDA profit, of which flagship stores made the main contributions. The group plans to push Phuc Long into WIN stores and expand the flagship system.
Another notable point is that Masan has successfully raised 600 million USD in syndicated loans from nearly 40 financial institutions. This 5-year agreement will refinance part of the outstanding debt at a competitive interest rate of 6.5%, thereby reducing financial pressure on the group.
Billionaire Nguyen Dang Quang’s group also re-evaluated its forecast for 2022 results with expected revenue of only 75,000-80,000 billion VND, profit after tax before benefits allocated to non-controlling shareholders from 4,800-5,500 billion VND.
This estimate is lower than the target set earlier this year due to unfavorable market conditions and tight consumer spending. However, the above figure still achieves growth when normalized against the high base level of 2021.
The group plans to open more than 300 new Wincommerce stores in the last quarter of the year, open 50-70 WIN stores and expand its membership program, and launch 23 private label products.
Phuc Long chain will open 30 flagship stores, build a platform system and optimize the kiosk model for rapid expansion in 2023.
@ Zing News
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Source: Vietnam Insider