MSN stays resilient amid US tariff risks

According to Mr. Danny Le – CEO of MSN, no matter how the world changes, there will always be a need for essential consumer goods. Therefore, the company is confident in its ability to grow and continues to set ambitious targets for revenue, profit, and stock value.

Tariff Impact

MSN operates in both domestic and international markets. As such, U.S. tariff policies have raised questions among investors and shareholders about whether MSN might be affected.

Mr. Nguyen Dang Quang, Chairman of the Board of Directors at MSN, affirmed that the impact of U.S. tariffs under the Trump administration has been minimal on the company’s operations and outlook. This is due to several key reasons. First, the U.S. market contributes less than 1% to the revenue of Masan Consumer Corporation (UPCoM: MCH), meaning that fluctuations in American trade policy have limited direct influence.

Second, the core products of Masan High-Tech Materials (UPCoM: MHT) are currently exempt from the announced tariff measures, further shielding the group’s revenue streams. Third, the prices of essential goods sold through WinCommerce (WCM) remain competitive compared to all other retail channels in the market, preserving the company’s domestic market share.

Finally, Vietnam has proposed a 0% tariff rate for U.S. goods, which reduces raw material costs for industries like convenient foods and meat (especially those linked to animal feed), while also helping lower overall production expenses.

Despite these mitigating factors, Mr. Quang emphasized that the company is not complacent. MSN continues to monitor global developments and is actively preparing business strategies to adapt to various tariff scenarios, including potential portfolio restructuring to minimize any negative effects on consumer sentiment.

The confidence and resilience of MSN's Chairman reflect the company’s readiness to confront and overcome challenges—an approach that, according to Mr. Quang, means: "What we do today defines who we are tomorrow."

Despite questions from shareholders regarding tariff impacts, trade war risks, or potential consumption downturns as spending tightens, MSN continues to boldly set ambitious business targets. These targets are grounded in current momentum and future plans. For instance, MSN aims for revenue growth between VND 80 trillion and 85.5 trillion, and post-tax profit growth of 14–52%, equivalent to VND 4.785 trillion to a maximum of VND 6.5 trillion. This will be driven by the synergistic ecosystem involving MCH, MML, and WCM, as well as other subsidiaries, demonstrating the company’s spirit of “daring to fight, daring to win” and flexible adaptation to all economic conditions.

Ambition in Consumer Retail

MCH (Masan Consumer Holdings) benefits from strong brands, has captured various market segments, and meets diverse consumer needs. According to MCH, revenue growth from premium SKUs in fish sauce, soy sauce, and convenience foods has been 2.2 times higher than the industry average during 2023–2024, becoming a long-term growth engine for the company.

In 2024, MCH continued its innovation efforts, with new products generating gross revenue of VND 2.281 trillion—an increase of 62% year-on-year.

“We also own a nationwide distribution network with over 313,000 traditional retail outlets and 8,500 modern retail points. As a result, 98% of Vietnamese households have at least one MCH product (according to Kantar Worldpanel). From 2017 to 2024, MCH achieved a CAGR of 12.9% in revenue and 19.7% in net profit, demonstrating outstanding business efficiency in a fiercely competitive market. Notably, the company recorded a return on invested capital (ROIC) of 222% in 2024, showcasing efficient capital use and superior returns for shareholders,” said Mr. Truong Cong Thang – CEO of MCH.

MCH’s Q1/2025 business results further highlight the value of product premiumization, out-of-home consumption development, and international expansion (Go Global). The company posted revenue of VND 7.489 trillion, a 13.8% increase over the same period last year. Growth was consistent across segments: spices (up 15.9%), beverages (up 8.7%), coffee (up 39.8%), personal and home care products (up 13.0%), and international revenue rose 73.2% year-on-year.

Key international markets such as China, Japan, South Korea, and Southeast Asia continue to be major contributors to MCH’s international revenue. Undeterred by tariffs or trade wars, MCH aims for its Go Global strategy to be a primary growth driver over the next five years, with international markets projected to account for 20% of 2025 revenue.

With a high gross margin (46.7%), MCH continues to pursue a differentiated strategy of building strong brands, aiming for billion-dollar labels in the literal sense. Mr. Truong Cong Thang stated that revenue and profit targets still rely on existing strong products, with new products expected to contribute 5–7% to annual revenue.

Soon, MCH will launch a new line of Wake Up 247 products in collaboration with Manchester City Football Club, a Premier League giant. Additionally, new products like Omachi – Asian Street Food (convenient $1 boxed meals) and Chin-su rice bran oil are expected to stir up the consumer market and offer more choices for the 72 billion meals consumed annually by Vietnamese people. Ultimately, this will contribute directly to company revenue.

Besides MCH, other key pieces, especially WCM, perfectly complement MSN’s consumer retail platform. WCM posted its first profitable year in 2024, completed its restructuring five years after being acquired from Vingroup, and maintained profitability in Q1/2025. However, MSN’s leadership noted that investors are still watching, and WCM needs to stay profitable for at least three consecutive quarters. This will be reflected in stock valuations, raising investor expectations in line with the value and potential of a leading retail-consumer group.