Summary of MSN’s 9M 2022 results

- MSN released its 9M 2022 results, including net revenue of VND55.5tn (USD2.3bn; -14% YoY) and NPAT-MI of VND3.1tn (USD127mn; +47% YoY). Revenue was mainly dragged by the deconsolidation of the feed segment in November 2021. Excluding the feed segment, like-for-like (LFL) revenue growth was 5% YoY in 9M 2022, which was driven by 21% YoY and 5% YoY revenue growth for Masan High-Tech Materials (MHT) and Masan Consumer Holdings (MCH), respectively. Furthermore, MSN recorded one-off financial income in 9M 2022. Excluding this one-off gain and the contribution from the feed segment in 9M 2021, NPAT-MI increased 40% YoY on an LFL basis. We mainly attribute the faster growth rate in the bottom line vs the top line on an LFL basis to improved profitability for MHT and WinCommerce (WCM).

- Despite WCM’s revenue declining in 9M 2022, it contributed to MSN’s bottom-line improvement as its profitability improved in 9M 2022 as a result of improvements in new store opening, more effective product assortment and targeted promotions. 

- While 9M 2022 revenue was broadly in line with our expectations as Q4 is normally a peak season, MSN’s NPAT-MI tracked behind our expectations as revenue and recurring NPAT-MI completed 66% and 57% of our respective full-year forecasts. Notably, net financial expenses were ahead of our projections mainly due to foreign exchange losses. As the USD/VND exchange rate has depreciated ~4% since end-September 2022 — on top of a ~4% depreciation in 9M 2022 — we see potential downside to our recurring NPAT-MI forecast, pending a fuller review.

Powered by Froala Editor