Masan Group has announced its revenue target of VND 100,000 billion for the third consecutive year, after failing to achieve the target in the past two years. The company expects its main revenue pillar, WinCommerce, to drive growth this year.
During the company’s annual meeting, Masan’s revenue plan was approved with a more conservative scenario of VND 90,000 billion. Profit after tax is expected to range from VND 4,000-5,000 billion.
Masan’s first attempt at a VND 100,000 billion revenue target in 2021 fell short, with the company achieving only VND 90,000 billion. In 2022, Masan set a similar target, but only achieved approximately VND 76,000 billion. The management believes that the main reasons for the business results not meeting expectations are due to the transfer of the animal feed segment and people tightening their spending habits during the pandemic.
Despite the previous failures, Masan’s CEO, Danny Le, expressed confidence in the ability to complete the revenue target this year. He stated that this year marks the beginning of the acceleration phase after restructuring WinCommerce, which owns the WinMart+ store chain and WinMart supermarket.
Le emphasized that Masan is expanding its store network, building a membership program to retain customers, and utilizing technology and user data to optimize the shopping experience. The company plans to open 800-1,200 new stores this year, which will boost sales and improve profit margins by developing private labels and investing in fresh food.
Masan’s management has identified three key areas for growth: expanding the modern retail network combined with traditional grocery stores, growing customer loyalty, and increasing market share through add-on services and cross-selling products. The company also established a logistics company to optimize costs for freight forwarding activities.
In addition, Phuc Long is expected to be a driving force for revenue growth. Masan owns 85% of Phuc Long’s capital, and the beverage chain recorded revenue of nearly VND 1,600 billion last year. This year, Phuc Long is expected to contribute VND 2,500-3,000 billion to total revenue, up 58-90% over the same period, thanks to the opening of about 90 stores and becoming the second-largest beverage chain in the market in terms of the number of points of sale.
Furthermore, Masan plans to gain more market share in key categories, such as convenience foods, beverages, personal and home care products, to increase sales. The company’s meat and minerals segments are expected to contribute approximately VND 9,000 billion and VND 18,000 billion respectively to total revenue.
To supplement capital for large investment projects, Masan plans to issue up to $500 million in convertible bonds to the international market. The company also plans to offer up to 142 million shares at a price not lower than book value.