Back to Previous Page
Company Quarterly Earnings Update – MCH VN – 2019 Q2
Summary of the H1/2019 results of Masan Consumer Corp. (MCH VN)
H1/2019 results: highlights
- For H1/2019 net revenue went up by 6,4% y/y. Though the seasonings business, which contributed the largest share (40%) of the total revenue, delivered the lowest growth. Convenience food and non-alcoholic beverages are the two major growth drivers, contributed 27.3% and 19.9% of the total sales respectively. Other businesses, including coffee, processed meat collectively contributed ~12.9% to the company’s revenue.
- Though MCH’s gross margin was lower than previous year, its effort to reduce the operating expenses(as a % sale) helped to keep its net margin at 21.0%.
- MCH still maintain a strong financial position with a high cash level and a moderate leverage. However, loans/receivables due from the parent company remain high, at 48.0% of total assets. This loan started picking up again since 2016.
Outlook
- We forecast the revenue to grow by a CAGR of 8.0% between 2018-2023. In which, the seasonings and convenience food segment is forecasted to grow by a CAGR of 7.4% and 2.8% respectively because of the maturity of these two markets. We believe MCH will face an increasingly competitive market in both non-alcoholic beverages and coffee segment. Whilst the former one is forecasted to grow by a CAGR of 12.2%, the latter is forecasted to shrunk by a CAGR of 1.7% during this period. For the processed meat segment, we believe that the partnership with Jin-Ju has started to materialize and we forecast this segment to grow by a CAGR of 24.0% between 2018-2023.
- We forecast the net profit to grow by a CAGR of 9.0% between 2018-2023. We believe MCH will still be able to control its operation expenses at around 23.0% of its net revenue thanks to the economies of scale. Therefore, the company will be able to maintain its net margin at ~20% within the next 5 years.
Recommendation
Company ratings and target prices are accessible for clients only.
If you are interested in getting full access to our paid Primary Research Materials feel free to get in touch with us at your convenience.
Our team is actively covering 50 companies in the listed Vietnamese equity space for our clients.
Featured image credit: masangroup.com
