Up to 1,100 Vinmart+ stores with Phuc Long Kiosks inside are expected to open by the year-end (Photo: VNA) Hanoi,July 1 (VNA) - The Masan Group Corporation and its subsidiary company, The CrownX, onJuly 1 announced the acquisition of the latter’s shares from minorityshareholders, increasing Masan’s direct and indirect stakes in it from 80.2 percentto 84.9 percent.
TheMasan management board believes the transaction represents optimal use of thecompany’s cash because of its trust in the growth and profit trajectory of TheCrownX.
DannyLe, Chief Executive Officer of the Masan Group Corporation, said: “We will hit a keymilestone this year with VinCommerce (VCM) becoming profitable. We are turningour focus on expansion to build the nation’s number one network while keepingour profit momentum intact.
“Thisturnaround gives us confidence to invest big to accelerate ouroffline-to-online strategy. We believe The CrownX is undervalued based on itsexpected 2021 financial performance and its current valuation does not price inthe upside of our off-to-online platform.”
TheCrownX is a consumer-retail platform that currently consolidates Masan’sinterests in Masan Consumer Holdings and VinCommerce.
Withrespect to VinCommerce, based on achieving breakeven earnings before interestand tax for the month of June, management sees a path to deliver positiveearnings in the second half of 2021, inclusive of headquarter costs.
VinCommerceplans to expand its store network back to 3,000 . Its like-for-like growthposted in the first half of the year is supplemented by opening 300-500VinMart (VMP) minimarts by year end.
Thenew stores are projected to deliver breakeven EBITDA in six to 12 months due toa revamped and more efficient supply chain model, total commercial marginuplift and a winning assortment to drive consumer traffic.
Besidesthe store-in-store Phuc Long Kiosk has and will drive traffic and profitabilityfor VinMart, with 50 pilot stores operational by the end of June 2021 expectedto generate 5 million VND (217 USD) additional sales per day in which VinCommercehas a 20 percent revenue sharing arrangement.
Themanagement board forecasts 1,100 kiosks will be operational across VinMart locationsby the year-end.
Theadditional 1 million VND revenue per day (20 percent of 5 million VND per dayper kiosk) is expected to enhance EBITDA margins by 4 percent for each VinMartstore that has a Phuc Long Kiosk.
Themanagement board expects to ramp up the online partnership with Lazada to drivegrocery as a daily online use case.
Thepilot of four-hour express delivery from 14 VinMart supermarkets in Ho Chi MinhCity and Hanoi with a winning portfolio of 2,000 pre-selected SKU’s, wherefresh products acts as a differentiator, has delivered strong early results.
TheMasan Consumer Holdings posted double-digit top- and bottom-line growth in thefirst half of this year, despite an overall decline in the FMCG market in theperiod.
Thegrowth continues to be driven by innovations launched over the past eightquarters and management preparing for big innovations as the FMCG marketrecovers in the second half of the year.
AlibabaGroup and Baring Private Equity Asia did not sell their shares as part of thetransaction.
Themanagement board plans to raise a further 300-400 million USD at The CrownX inthe second half of the year./.
TheMasan management board believes the transaction represents optimal use of thecompany’s cash because of its trust in the growth and profit trajectory of TheCrownX.
DannyLe, Chief Executive Officer of the Masan Group Corporation, said: “We will hit a keymilestone this year with VinCommerce (VCM) becoming profitable. We are turningour focus on expansion to build the nation’s number one network while keepingour profit momentum intact.
“Thisturnaround gives us confidence to invest big to accelerate ouroffline-to-online strategy. We believe The CrownX is undervalued based on itsexpected 2021 financial performance and its current valuation does not price inthe upside of our off-to-online platform.”
TheCrownX is a consumer-retail platform that currently consolidates Masan’sinterests in Masan Consumer Holdings and VinCommerce.
Withrespect to VinCommerce, based on achieving breakeven earnings before interestand tax for the month of June, management sees a path to deliver positiveearnings in the second half of 2021, inclusive of headquarter costs.
VinCommerceplans to expand its store network back to 3,000 . Its like-for-like growthposted in the first half of the year is supplemented by opening 300-500VinMart (VMP) minimarts by year end.
Thenew stores are projected to deliver breakeven EBITDA in six to 12 months due toa revamped and more efficient supply chain model, total commercial marginuplift and a winning assortment to drive consumer traffic.
Besidesthe store-in-store Phuc Long Kiosk has and will drive traffic and profitabilityfor VinMart, with 50 pilot stores operational by the end of June 2021 expectedto generate 5 million VND (217 USD) additional sales per day in which VinCommercehas a 20 percent revenue sharing arrangement.
Themanagement board forecasts 1,100 kiosks will be operational across VinMart locationsby the year-end.
Theadditional 1 million VND revenue per day (20 percent of 5 million VND per dayper kiosk) is expected to enhance EBITDA margins by 4 percent for each VinMartstore that has a Phuc Long Kiosk.
Themanagement board expects to ramp up the online partnership with Lazada to drivegrocery as a daily online use case.
Thepilot of four-hour express delivery from 14 VinMart supermarkets in Ho Chi MinhCity and Hanoi with a winning portfolio of 2,000 pre-selected SKU’s, wherefresh products acts as a differentiator, has delivered strong early results.
TheMasan Consumer Holdings posted double-digit top- and bottom-line growth in thefirst half of this year, despite an overall decline in the FMCG market in theperiod.
Thegrowth continues to be driven by innovations launched over the past eightquarters and management preparing for big innovations as the FMCG marketrecovers in the second half of the year.
AlibabaGroup and Baring Private Equity Asia did not sell their shares as part of thetransaction.
Themanagement board plans to raise a further 300-400 million USD at The CrownX inthe second half of the year./.
VNA
