Masan earned profit of nearly US$47.3 million in the third quarter

By Minh An - Nov 02, 2017 | 02:50 PM GMT+7

TheLEADERProfit of Masan Group recovered after a sharp decline in the first half of 2017.

Masan earned profit of nearly US$47.3 million in the third quarter
Masan fish sauce. Photo: WSJ

Masan Group recently announced its sale in the first nine months of 2017 that decreased by nearly 10% to VND27,451 billion (US$1.3 billion). In particular, sales of agricultural consumer goods fell by 17% and sales of food and beverage decreased by 8%.

Masan's profit after tax decreased by 41% to VND1,466 billion (US$69.3 million). Masan explained that its cost of sales increased due to inventory optimization decisions in the distribution system in order to ensure sustainable growth of the food and beverage industry.

In June, the group's management reported that it had spent VND305 billion (US16.5 million) so as to support the inventory reduction program. This was the preparation for Masan's new product launch strategy.

It can be said that Masan's business situation has begun to recover. Its profit in the third quarter reached nearly VND1 trillion (US$47.3 million), accounting for two third of total profit from the beginning of this year.

However, it is difficult for Masan to achieve its profit target of more than VND3 trillion (nearly US$142 million) this year.

Mansan's stock on October 30 was traded at VND60,000 (US$2.84), up 2.6%. This group is in the process of acquiring treasury shares with maximum 10% of total shares.