Photo: Duc Anh
Animal feed accounts for 60% of Group's total revenue in first six months as FMCG growth stalls.
The Masan Group earned revenue of more than $855 million in the first half of this year, an 84 per cent increase year-on-year, of which revenue from animal feed accounted for 60 per cent of total revenue.
Net profit stood at over VND1 trillion ($45 million), three-fold higher than the VND364 billion ($16.3 million) recorded in the first half of last year.
Company leaders predict annual revenue will come in at 25 per cent higher than the target set earlier in the year.
One factor pushing up Masan’s profits was growth in animal feed from its subsidiary Masan Nutri-Science (MNS), which brought in VND11 trillion ($495 million), up 14 per cent year-on-year.
While the animal feed sector grew strongly, fast-moving consumer goods (FMCG) saw lower growth in the first six half, especially in sauces, with revenue from instant noodles declining. Total revenue from FMCG stood at over VND6.3 trillion ($283.5 million), up 7.9 per cent year-on-year, with growth in sauces at just 4 per cent while instant noodle sales shrunk 11 per cent.
Techcombank, in which Masan owns 34.4 per cent, also announced its business results for the first half. Pre-tax profit reached over VND1.5 trillion ($67.5 million), up 53.8 per cent year-on-year. Its bad debt ratio remained at 1.87 per cent and its capital adequacy ratio (CAR) was 14.3 per cent as at June 30, much higher than the State’s requirement of 9 per cent.
Masan’s mining concern, Masan Resources (MSR), recorded revenue of over VND1.7 trillion ($76.5 million), up 45.3 per cent year-on-year despite low commodity prices. Net profit was VND70 billion ($3.15 million).
The Nui Phao mine project in northern Thai Nguyen province has an important role to play for the group and MSR is to continue improving its production efficiency and reduce costs.
The Ministry of Natural Resources and Environment (MoNRE) recently announced it will conduct an inspection at Nui Phao in August, after claims of environmental pollution were made.
The ministry also asked the Nui Phao Mining Company, the project owner and a subsidiary of MSR, to evaluate the impact of the project on the environment and the lives of local people. Based on the company’s report, the ministry and local authorities will decide whether it is necessary to relocate nearby villages. It also asked for plans for an automatic observation system for wastewater, under Decree No. 38/2015 from the government.
In response, MSR announced it is ready to welcome the inspection team and the media to the Nui Phao project.
The project was licensed in 2005 and has significant deposits of tungsten, fluorspar, bismuth and copper, and is the world’s largest tungsten mine outside of China. It covers an area of 9.21 sq km in Dai Tu district.
In 2010 MSR acquired the project from Dragon Capital, a Vietnam-focused financial institution, and other stakeholders. The mine began commercial operations in the first quarter of 2014.
The Masan Group is one of Vietnam’s largest companies, focused on domestic consumption and building leading businesses in the branded food and beverage sector and in the animal nutrition value chain.
In addition to MSR its businesses include Masan Consumer Holdings, the producer of some of Vietnam’s most trusted and loved brands in food and beverages, such as Chin-su, Nam Ngu, Tam Thai Tu, Omachi, Kokomi, Vinacafe, Wake-up, Vinh Hao, and Su Tu Trang, and Masan Nutri-Science, Vietnam’s largest animal feed company, with brands including Proconco and Anco.