Masan Group, the diversified giant with interests ranging from instant noodles to tungsten mining, is realigning its business structure to focus more on consumption and resources in the hope of garnering higher profits.
The private group is preparing to set up Masan Consumer Holdings to build a broader and deeper consumer platform. Upon establishment, the new company will directly control Masan Consumer and Masan Consumer Ventures, with the latter to be established as a wholly owned subsidiary.
Masan Consumer will continue to serve as Masan Group’s food and non-alcoholic beverage businesses. Meanwhile, Masan Consumer Ventures will be an incubation platform for high growth opportunities.
Madhur Maini, who has been the group’s CEO for five years, will assume the roles of chairman of Masan Consumer Holdings and vice chairman of Masan Resources, while remaining a board member of the group.
The group said last week that this year’s second quarter, it obtained good sales and gross profits thanks to product launches and positive results from Nui Phao mining project’s business.
The second quarter saw its net revenues increase to VND2,736 billion ($130 million), up 8.4 per cent versus last year’s second quarter, while gross profits reached VND1,111 billion (almost $53 million), up 7.1 per cent, driven by growth from Masan Consumer.
The group said lower profits from associate Techcombank affected overall results, with the group’s second quarter pro forma after-tax profit at VND484 billion ($23 million), down 43.4 per cent on last year’s second quarter.
Masan Consumer continued investing in the second quarter to build out its brands. It has introduced Wake-Up Saigon instant coffee brand as a product targeting the mid-tier segment. It has also launched Phinn, a 2-in-1 instant coffee targeting roast and ground drinkers.
The consumer company has further invested in its convenience food portfolio, expecting to grow its instant noodle market share from 20 per cent to around 30 per cent by the end of the year.
Meanwhile, revenues at Vinh Hao Mineral Water Company where Masan Consumer is a major shareholder are expected to grow by some 20 per cent this year.
In mining, Masan Group’s Nui Phao project has commenced production of tungsten and copper concentrate to international specifications, and achieved its first product sales. Nui Phao has just produced sodium tungstate, a deep processed tungsten chemical product. Further off-take contracts for tungsten are now in place, with Germany’s H.C. Starck, one of the leaders in the global tungsten industry, and Nui Phao Mining Company announcing in July a joint venture for production of value-added tungsten chemicals in Vietnam.
Masan and H.C. Starck will own 51 per cent and 49 per cent, respectively. The foreign side will operate the venture and has committed to buy a large share of the production for its own internal use.
By Nguyen Thuy
Đăng ký: VietNam News