Thanks to promoting innovation, the "Go Global" strategy, and business strategies surrounding the culture of "Vietnamese people using Vietnamese products", the gross profit margin in 2023 of the Masan Consumer retail segment of Masan Group ( stock code MSN) has set a new record high.
Masan Consumer's gross profit margin exceeded historical peak
The consolidated financial report for the fourth quarter of 2023 shows that, despite macroeconomic challenges, the retail consumer segment - Masan Consumer continues to have a "booming" business year, breaking a series of previous records. .
Specifically, cumulatively for the whole year 2023, Masan Consumer recorded VND 29,066 billion in net revenue, an increase of 5.4% over the same period last year and an increase of 9% on a Like-for-Like basis (LFL, growth in the existing store). Meanwhile, inventory size is still maintained at a healthy level.
Notably, Masan Consumer's gross profit margin rebounded to 44.9% in 2023, compared to 40.1% in 2022 on an LFL basis. According to the Group's representative, the impressive growth comes from a product structure with high profit margins, strong brands, low input raw material prices, and improved production operating efficiency.
In terms of product groups, family & personal health care product groups; Spice; and Convenience foods are the main growth drivers with growth rates in 2023 of 39.4%, 18.2%, and 8.8% respectively compared to 2022.
The group said that to ensure the stability of profit margins in 2024, Masan Consumer has locked in most prices for production materials until the second half of this year.
Over the past year, Masan Consumer's innovation strategies have reaped positive results. Typically, implementing the new product launch model on the WinCommerce system chain and online sales channels has helped increase the success rate and optimize launch time. Thereby, helping innovation revenue (revenue of newly launched products, applying innovation and creativity) in 2023 increase by 39% compared to 2022, reaching nearly 1,300 billion VND.
Creating mid- and long-term growth momentum with the "Go Global" strategy
For export channels, the "Go Global" strategy has brought in more than 1,000 billion VND in revenue for Masan Consumer in 2023. Thereby, achieving a compound annual growth rate of up to 31% for the period 2020 - 2023.
“Go Global” is currently one of Masan Consumer's key business strategies to achieve the goal of increasing the proportion of export channel sales to 15% in total revenue by 2027. With the current proportion of 4%, Masan Consumer need to set a growth rate of 2 - 3% per year, equivalent to an increase of nearly 4 times by 2027.
According to the current assessment of some financial institutions, the above strategic goal of Masan Consumer may soon be achieved when Masan Consumer has successfully penetrated two "billion dollar" markets of Asia, Japan and Korea. in 2023.
In addition, in the US market, Masan Consumer's Chinsu chili sauce product has surpassed more than 400 chili sauce brands (Chili Sauces) being sold on the Amazon e-commerce platform and reached the Top 8 Best Sellers.
For the domestic market, a representative of Masan Group said, Masan Consumer continues to promote business strategies surrounding the culture of "Vietnamese people using Vietnamese products" such as the strategy of premiumizing products specifically for consumers. Using Vietnamese has been implemented drastically in the past year.
Typically, Masan Consumer has cooperated with Pho Thin Bo Ho - a traditional pho brand in Hanoi with nearly 700 years of history, to develop a new instant product line called Pho Story. This is the first time in the market that a large-scale modern consumer brand has combined with a traditional brand to launch a new convenient product.
In 2024, Masan Consumer aims to achieve expected net revenue of VND 32,500 - 36,000 billion, with growth mainly contributed by the product groups of Convenience Foods, Beverages and Home & Personal Care.
At the same time, Masan Consumer plans to promote the export of food products (F&B) through the "Go Global" strategy to achieve medium and long-term growth momentum.
(Source: Industry and Trade Magazine)
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