Summary of MSN’s Q1 2023 results

- MSN released its Q1 2023 results, including net revenue of VND18.7tn (USD796mn; +3% YoY) and recurring NPAT-MI of VND215bn (USD9mn; -80% YoY (1)). Revenue was mainly driven by 26% YoY like-for-like (LFL) (2) growth of Masan MEATLife (MML), which was offset by single-digit LFL growth of The Crown X and a 4% YoY decline of Masan High-Tech Materials (MHT). The main drivers for the plunge in MSN’s profit include (1) a 38% increase in net financial expenses due to a higher total debt balance (+29% YoY) and elevated average cost of debt, (2) a lower profit contribution from TCB (-18% YoY), and (3) 10% decline in MHT’s EBITDA.

- Q1 2023 revenue and NPAT-MI tracked behind our expectation as revenue and recurring NPAT-MI completed 22% and 8% of our respective full-year forecasts. We see downside risk to our forecasts, pending a fuller review.