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Billionaire Nguyen Dang Quang – Photo: MSN
“When we announced the acquisition of VinCommerce, we were sure that all employees, investors and the market would welcome this decision. But what happened exceeded expectations … Our strategic movement has received mixed reactions. The people who believe most in Masan have shuddered and our share price was cut in half in just one month. ” Billionaire Nguyen Dang Quang shared the recently announced annual report with shareholders..
At the end of 2019, the two largest private corporations in Vietnam embarked on a M&A (merger, acquisition) deal that caused the market to “rock”. Consequently, Masan Group acquired VinCommerce Company (which owns the Vinmart supermarket and convenience store chain, Vinmart +) and VinEco Company from Vingroup. Masan Group takes control of operations, Vingroup is a shareholder.
After the handshake, Masan received a loss of more than $ 100 million from VinCommerce, although he did not have much experience operating in the retail sector.
Quang said this agreement makes the already multi-disciplinary corporation even more multi-disciplinary and continues to deepen suspicions that Masan’s mergers and acquisitions do not appear to achieve its strategic goals, strategy and finances as desired.
“Sometimes it takes a step back to kickstart the jump. We choose to sacrifice market share and growth to lay the foundation for a large business and exceptional profitability. Masan operates on the simple principle, when the foundation is not strong, the house will definitely shake, “he said. said this billionaire.
Therefore, the group has set a goal VinCommerce achieved an equilibrium EBITDA (profit before tax) in one year. At the same time, “roll up your sleeves”, drastically close more than 700 VinMart + mini-supermarkets, restructure the supply chain to increase logistics efficiency and goods turnover, as well as optimize the portfolio of goods to meet demand. Consumer demand, placing emphasis on consumers rather than driving sales.
According to Mr. Quang, the theory is very simple, but implementing it in practice with outstanding results is not easy. Finally, to the fourth quarter of 2020 VinCommerce reached expected equilibrium EBITDA positive in the first quarter of 2021.
At the end of fiscal 2020, Masan’s total assets reached more than VND 115,736 billion, an increase of 18% compared to the beginning of the year. However, liabilities also nearly doubled to more than 90.7 billion dong. At the same time, equity is reduced more than 2 times, to about 25.030 billion. For the full year 2020, Masan’s net profit after tax is more than 1,395 million dong, a negative 78% year-on-year.
Within 1 year, Masan shares have increased price fluctuations by more than 80%. As we close today’s session on March 30, Masan’s share price is at VND 88,500.
based on Forbes rankings, in real time at 3:30 p.m. today, Mr. Quang is at position 2234 on the list of billionaires in the world with total assets of more than 1.1 billion dollars, falling more than 500 notches. and 200 steps. 5 and a half months now. At the same time, Mr. Pham Nhat Vuong (Chairman of Vingroup) is ranked 286th on the list of billionaires with a total assets of $ 8 billion.
