Back to Previous Page
Company Quarterly Earnings Update – MCH VN – 2020 9M
Summary of the 2020 9M results of Masan Consumer Corp. (MCH VN)
9M/2020 results highlights:
- MCH’s business continued prospering, with revenue amounted to VND15,946bn, +29.4% y/y. The second wave of the COVID-19 outbreak also resulted in consumer’s preference for dining in, enabling the convenience food and seasonings segment to expand by 41.9% y/y and 14.3% y/y, respectively. The non-alcoholic beverage segment managed to grow by 8.8% y/y, thanks to energy products. Processed meat and home care segments’ contribution to the total sale was still insignificant, despite their strong growth during this period.
- The bottom line increased by 21.7% y/y, while its net margin reduced to 19.2% from 20.5% in 9M/2019 due to a higher contribution of lower-margin products.
- MCH’s financial position remained healthy. The leverage was moderate (D/E = 0.5x). Cash and cash equivalents accounted for 12.0% of total assets. Loans to parent company was VND8,557bn, reducing by ~VND3,000bn since the end of June, as MCH collected this amount through net-off with the dividend payable. However, loans to its parent company still accounted for 36.7% of total assets.
Outlook
- While the COVID-19 is well contained in Vietnam, we expect the preference for dining in will continue in Q4/2020 and Q1/2021 before normalizing for the rest of 2021. Therefore, the seasonings and convenience food segment will benefit from this, though both are getting to a mature stage. Non-alcoholic beverage segment will continue expanding on the back of the company’s extensive distribution network. The partnership with Jin-Ju will continue to bear fruit, enabling MCH to introduce new product variants continuously. The home & personal care segment’s success is unclear as multinational firms like Unilever dominate the market.
- As for the FY2020, we estimate revenue and net profit will reach VND23,211bn (+25.6% y/y), and 4,581bn (+12.8% y/y), respectively.
- Overall, for the FY2021, we expect MCH’s business will be normalized as 2020 is a high base. We expect revenue to increase by 6.6% y/y, reaching VND24,752bn. The bottom line should grow by 6.2% y/y, hitting VND4,867bn.
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
