MASAN MB ONE MEMBER COMPANY LIMITED

MASAN MB ONE MEMBER COMPANY LIMITED: Profit Soars While Liquidity Plummets — A Textbook Case for High-Risk Alert

MASAN MB ONE MEMBER COMPANY LIMITED (Vietnamese name: CÔNG TY TNHH MỘT THÀNH VIÊN MASAN MB) is a wholly owned subsidiary of MASAN FOOD COMPANY LIMITED, headquartered in Nam Cam Industrial Park, Nghe An Province. Registered under Tax Code (TIN): 2901738808, the company manufactures and packages staple food items, including instant noodles, rice noodles, sauces, and energy drinks. It operates with a workforce of 550 employees and has been active for more than a decade since its registration on October 20, 2014.

From a financial standpoint, MASAN MB presents a conflicting picture. On one hand, the company posted USD 240.16 million in revenue in 2023, a 10.7% increase year-over-year, and recorded an impressive USD 92.92 million in net profit, up 32.68% from the previous year. These numbers place it among the most profitable food processing units in the country in terms of return on sales.

However, from a risk management perspective, several deep concerns must be flagged. Most critically, the company's total assets dropped 21.32% in 2023, continuing a multi-year decline. Worse still, its working capital has collapsed to negative USD 70.3 million, marking a 547.98% deterioration compared to 2022. This is not just a warning signal — it is a flashing red light.

Such a severe liquidity crisis means MASAN MB may be operating with an over-reliance on short-term liabilities, potentially delaying payables or drawing down reserves at unsustainable rates. Despite the strong profitability, this imbalance implies a serious cash flow risk, particularly in the event of supply chain disruptions, input cost shocks, or delayed collections from distribution channels.

Adding to the concern is the stagnant equity position. Owner’s equity has remained unchanged for three years at USD 25.47 million, suggesting that all profits are either fully distributed or not being reinvested to stabilize the balance sheet. This increases reliance on external credit and erodes internal financial buffers.

Given that the company is part of the MASAN Group ecosystem, it likely benefits from centralized procurement and distribution. But this affiliation alone does not immunize it from insolvency risks if internal cash flow management and asset health continue to deteriorate.

Risk Advisory Summary:

• Liquidity Risk: Very High — negative working capital is unsustainable in the long term.

• Solvency Risk: Moderate — fixed equity base and falling assets despite high profits could constrain future borrowing capacity.

• Operational Risk: Low — core business is profitable and growing, but dependent on tight financial management.

• Strategic Risk: Moderate — no visible reinvestment may limit resilience and growth flexibility.

Recommendation: Immediate attention is required to improve liquidity, whether through retained earnings, capital injection, or restructuring of short-term liabilities. Stakeholders, including suppliers, financial institutions, and business partners, should demand enhanced transparency into cash flow statements and credit terms. Until working capital is stabilized, MASAN MB should be treated as a high-revenue, high-risk partner.

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