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Masan Group & SK Group to set up Strategic Cooperation Committee

Released at: 14:12, 30/10/2018

Masan Group & SK Group to set up Strategic Cooperation Committee

Photo: Masan Group

Masan also releases report on management accounts for first nine months.

by Doanh Doanh

The Masan Group Corporation and the SK Group will set up a Strategic Cooperation Committee in the fourth quarter, responsible for implementing operational synergy and exploring additional partnership opportunities across the Masan Group’s business units. 

The announcement was released together with the group’s report on its management accounts for the first nine months of the year.

The group delivered VND26.63 trillion ($1.14 billion) in net revenue in the period, down 3 per cent year-on-year, mainly due to the impact of the pig price crisis on Masan Nutri-Science (MNS)’s topline. Excluding MNS, consolidated net revenue would have grown 29 per cent during the period.

Core profit (excluding net one-time gains (non-core) was VND1.472 trillion ($63 million), primarily from the “deemed disposal” of the company’s interest in Techcombank as a result of the bank’s recent equity issuances at a price higher than the company’s carrying value.

Core net profit after tax post-minority interest (NPAT Post-MI) in the first nine months reached VND2.307 trillion ($99 million), up 90.2 per cent year-on-year, as the Core NPAT Post-MI margin increased to 8.7 per cent from 4.4 per cent in the same period of 2017.

Management expects consolidated fourth-quarter net revenue to grow 15 per cent year-on-year and deliver full year Core NPAT Post-MI of VND3.3-3.4 trillion ($141.6-$145.9 million) and Reported NPAT Post-MI of VND4.7-4.8 trillion ($201.7-$206.2 million), both representing growth of over 50 per cent year-on-year.

“We continue to execute on our medium-term growth plan,” said Dr. Nguyen Dang Quang, Chairman and CEO of the Masan Group. “Masan Consumer’s premiumization and beverage strategy is showing sustainable traction, positioning us to grow 2-3x Vietnam’s FMCG retail sales growth rate over the next few years.”

He added that Masan Resources’ acquisition of a high-tech tungsten chemical plant is a strategic step to generate strong cash flows across commodity cycles. “We aim to double the plant’s capacity to further consolidate our ex-China tungsten market share,” he said.

Techcombank’s customer and technology-centric business model has made it the fastest growing and most profitable bank in the country. This trend will continue as it prioritizes fee income and services over interest income. “However, not all has gone according to our plans,” Dr. Quang said. “Masan Nutri-Science is still feeling pain from the pig price crisis. The feed market has since been recovering, but our strategic bet is on meat not feed. We have started selling pig livestock with great results but this will cease in 2019 as we begin to fully process our pig supply into branded meat products for consumers.”

The group looks forward to closing the year on a strong note and crystallizing its foundation to deliver double-digit top and bottom-line growth for 2019 and beyond.

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