The CrownX – the first chapter in the journey towards building Masan’s “Point of Life”
Sapa, April 1, 2021 – Today, Masan Group Corporation (HOSE: MSN) and its two subsidiaries: Masan Consumer Holdings (HNX-UPCoM: MCH), and Masan MEATLife (HNX-UPCoM: MML) organized the Annual General Meeting of Shareholders (AGM) in Sapa, Lao Cai, with the theme “To the Indochina summit”.
Even more special is the fact that this event takes place on the same day with the 25th anniversary of Masan Group (01/04/1996 – 01/04/2021), and Sapa – home of the Fansipan, the highest mountain peak of Indochina is the ideal destination chosen by Masan to mark a quarter of a century spent serving consumers, and to express the ambition to conquer new heights, to go far and beyond in the world.
In the opening remark, Dr. Nguyen Dang Quang, Chairman of Masan Group discussed the vision of Masan: “Exactly 25 years ago, Masan began its journey with a belief that “Serving consumers” is the best way to succeed in business. Technology and innovations are the drivers of breakthrough growth and superior added values. At the same time, we take pride in the Vietnamese values, and aspire to be a part of the Vietnam’s pride.
The entry into modern retail has increased our addressable market from 1% of the consumer wallet to ~25%. Our 5-year plan is to develop a winning model to serve 30-50 million consumers and unlock significant value for our consumer value chain. This means consumers will pay 5 – 10% less for essential goods, manufacturers and farmers agricultural producers generate 5-10% more profit; our retail franchisees make 5-10% more profit versus their current operations.”
Masan’s Management presented a transformative development plan, as well as key directive actions for the period of 2021 – 2025. Now is a pivotal time after 25 years as the company continues to write new chapters on the journey of “Serving consumers”.
Mr Dany Le, CEO of Masan Group Corporation shared the strategic roadmap to build the Point of Life (POL) foundation, aiming to bring more benefits to consumers, manufacturers, and the small and medium enterprises.
By modernizing GT retail, accelerating offline-to-online (O2O) integrated commerce between MT retail and e-commerce platforms, and at the same time driving financial inclusion across Vietnam, Masan aims to serve 30 – 50 million consumers on one single platform (one-stop shop) to meet consumers’ everyday essential needs holistically.
In 2020, Masan established The CrownX, the leading integrated consumer retail platform, in consolidate Masan’s interest in Masan Consumer Holdings (MCH) and VinCommerce (VCM). MCH is one of the largest branded consumer goods company in Vietnam with a focus on power brands and innovation, while VCM is Vietnam’s largest modern trade grocery retailer with a nationwide network. In addition, acquisition of VCM has already delivered significant synergies with Masan MEATLife (MML) business, as MEATDeli products are now available in more than 1,200 VinMart+ minimarkets.
Mr Truong Cong Thang – CEO of The CrownX Corporation shared the 2021 – 2025 vision in his keynote presentation. The CrownX is where a retail network (VCM), an FMCG platform (MCH), a branded meat (MML), and a financial service provider (Techcombank) integrate and synergize to create a inter-connected business platform. And thus, The CrownX is considered the first chapter in the “Point of Life” journey that is taking shape at Masan.
With a consumer-centric model, The CrownX with its Point of Life is expected to create positive transformations to meet the big needs of consumers in the most holistic way. Through which, the Vietnamese consumers will have access to the best product and services, shop for grocery that truly is “The very best of fresh” at prices 5 – 10% lower than current. High quality products from manufacturers and farmers will be distributed widely and efficiently, cutting the intermediary costs, and reaching consumers faster. Retailers are offered partnership and support, opportunities to uplift their profit.
The CrownX targets to deliver USD8 billion in net revenues by 2025, with USD3 billion from Masan Consumer and USD5 billion from VinCommerce. The CrownX expects to own 25 Top consumer brands, serve 30-50 million loyal customers, and generate 10% of revenue from online channels.
For the year 2020, consolidated net revenue of Masan Group was 77,218 billion VND, a 106.7% growth versus 37,354 billion VND of 2019; net profit attributable was 1,234 billion VND. MCH reached a significant milestone: net revenue hit 1 billion USD for the first time in 2020, net revenue and EBITDA grew 27.2%, and 22.4% respectively versus 2019. Net revenue in 2020 of MML was 16,119 billion VND, a 16.8% growth compared to 2019, EBITDA margin was achieved at 11.7%.
For the 2021 financial budget proposed to shareholders, the Company targeted net revenue to reach between VND92,000 to 102,000 billion (19% to 32% growth versus 2020); net profit after tax and minority interest to reach between VND2,500 to 4,000 billion (103% to 224% growth versus 2020 core). MSN will target EBITDA margin of 15-20% and NPAT margin of 3-5% due to positive EBITDA margin in VCM and improving EBITDA margin of MML meat business in 2021.
MASAN GROUP CORPORATION
Masan Group Corporation (“Masan” or the “Company”) believes in doing well by doing good. The Company’s mission is to provide better products and services to the 100 million people of Vietnam, so that they can pay less for their daily basic needs. Masan aims to achieve this by driving productivity with technological innovations, trusted brands, and focusing on fewer but bigger opportunities that impact the most lives.
Masan Group’s member companies and associates are industry leaders in branded food and beverages, branded meat, modern retail, value-add chemical processing, and financial services, altogether representing segments of Vietnam’s economy that are experiencing the most transformational growth.
T: +84 28 6256 3862
T: +84 28 6256 3862
This press release contains forward-looking statements regarding Masan’s expectations, intentions or strategies that may involve risks and uncertainties. These forward-looking statements, including Masan’s expectations, involve known and unknown risks, uncertainties and other factors, some of which are beyond Masan’s control, which may cause Masan’s actual results of operations, financial condition, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You should not rely upon forward-looking statements as predictions, future events or promises of future performance.
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