
Masan Group (MSN) introduced its enterprise outcomes for the primary half of 2021 with consolidated internet income of VND 41,196 billion, up 16.4% over the identical interval final 12 months.
The constructive leads to the interval have been primarily attributed to the expansion momentum of the meals section (together with chilled meat and branded merchandise). Specifically, within the context of a sequence of wholesale markets that needed to be closed at the start of the outbreak, Vinmart/Vinmart+ turned the primary service level for shoppers’ meals wants in the course of the Covid-19 interval.
The retail section of Vincommerce – the operator of the VinMart/Vinmart+ system – continues to contribute the biggest income with practically VND 14,500 billion, accounting for 35% of the group’s complete income.

Vincommerce’s income on the whole has not had many adjustments since Masan took over, reaching greater than VND 7,000 billion per quarter. Aside from the primary quarter of 2021, the lack of the retail section improved considerably at simply over 100 billion dong, on the whole, the loss remains to be round 800-1,000 billion dong/quarter.
Nevertheless, the constructive sign is that Vincommerce has had three consecutive quarters of constructive EBITDA. EBITDA margin improved from 0.2% in This fall 2020 to 2% in Q1 2021 and a couple of.2% in Q2 2021. The reason being due to the unit’s enchancment in industrial revenue margin by negotiating with main suppliers, optimizing retailer working prices and enhancing provide chain effectivity.

Vincommerce’s gross revenue margin has improved from 15-16% within the first 2 quarters of 2020 to 18-19% in latest quarters.
The drastic closure of inefficient factors of sale together with the advance of the availability chain helped Vincommerce considerably scale back promoting & administrative bills (SG&A) in comparison with the primary quarters of the takeover. Masan’s report additionally reveals that Vinmart+’s common month-to-month working value within the first quarter of 2021 has decreased by 10% and VinMart’s by 20% in comparison with the identical interval final 12 months. In 2020, 700 factors of sale have been closed.
By the tip of the second quarter of 2021, VCM had 2,369 VinMart/VinMart+ shops, a rise in comparison with the tip of 2020. Wherein, VinMart continued to chop 1 retailer, whereas VinMart+ chain closed 57 inefficient shops; parallel opening 73 new shops.
In line with the plan, Masan will put 300 – 500 new VinMart+ shops into operation by the tip of 2021 with a breakeven EBITDA time of 6-12 months.

After Masan buys 20% shares of Phuc Lengthy system, Phuc Lengthy kiosks following the store-in-store mannequin will probably be deployed at Vincommerce’s factors of sale. As of July 21, 41 Phuc Lengthy kiosks have been put into operation and are anticipated to open 1,000 kiosks this 12 months. The kiosks in operation are contributing an extra 5 million VND to retailer income per day, serving to to enhance EBITDA margin by practically 4%. The income required to interrupt even for brand new shops with Phuc Lengthy kiosks is 15% decrease than for shops with out kiosks.
Lastly, concerning the on-line channel: Gross sales of the web channel elevated three instances in June 2021 in comparison with the primary quarter of 2021. If within the first quarter of 2021, on-line gross sales contributed lower than 1% to VinMart gross sales, by June 2021, gross sales of this procuring channel contributed 6.8%. At Four supermarkets in Ho Chi Minh Metropolis, the web channel contributed greater than 10% to gross sales in July 2021.
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