Selling nearly a million eggs per day, pork prices increase sharply, Hoa Phat profits increase by 80%

In the third quarter of 2024, Hoa Phat Group Joint Stock Company (HPG) recorded VND 3,022 billion in profit after tax, an increase of 51% over the same period last year. In the first 9 months, Hoa Phat recorded VND 9,210 billion in profit after tax, an increase of 140% over the same period last year.

Notably, the agricultural sector has made a significant contribution to this result of the "giant" Hoa Phat.

Accordingly, in the third quarter of 2024, the group's agricultural revenue increased by 21% over the same period last year, while profits increased dramatically by 80% over the same period in 2023. The reason is that stable pork prices and increased sales volume play an important role in the recovery and growth of Hoa Phat's agricultural sector.

In fact, recently the price of live pigs has remained quite high, at times even soaring to nearly 70,000 VND/kg.

The Department of Animal Husbandry (Ministry of Agriculture and Rural Development) previously calculated that at a farm with a scale of 200 pigs or more, the cost of producing live pigs is nearly 51,500 VND/kg. The selling price of live pigs on August 7 was 64,200 VND/kg, after deducting costs, farmers earned about 12,700 VND/kg of live pigs. Pigs sold according to the standard of reaching a weight of 100kg, meaning farmers will earn a profit of 1.27 million VND/pig.

With a closed livestock farming business that can take the initiative from animal feed to breeding, the profit margin is even higher.

The Group maintains its No. 1 position in the Northern market in terms of egg production. Photo: Hoa Phat

As of September this year, Hoa Phat has invested VND3,100 billion in the agricultural sector to build a closed value chain from animal feed production, pig, cow and poultry farming.

Accordingly, the output of pigs sold in the first 9 months of 2024 reached 443,000, an increase of 34% over the same period last year. In addition, Hoa Phat also owns nearly 25,000 sows, ranking among the top pig farming enterprises in Vietnam.

In poultry farming, egg output supplied to the market reached 243 million eggs after 9 months, up 5% over the same period in 2023. The Group maintained its No. 1 position in the Northern market in terms of egg output, with a capacity of up to 900,000 eggs/day. The output of Sonia day-old hens was more than 4 times higher than the same period last year.

Australian cattle farming also recorded a positive recovery. Over the past 9 months, cattle sales increased by 10% compared to the same period last year.

Animal feed production recorded a growth rate of 4%. Hoa Phat's two animal feed factories in Hung Yen and Dong Nai with a capacity of 600,000 tons per year have met the feed demand of its internal farm system and partners. This not only helps the group stabilize its supply but also increases its competitiveness in the domestic animal feed market.

Hoa Phat of 'steel king' Tran Dinh Long earned over 4 billion USD, focusing on major projects . By the end of the third quarter of 2024, Hoa Phat Group achieved revenue of over 105 trillion VND (4 billion USD), up 23% over the same period last year, despite many difficulties in the domestic and foreign steel markets.

Source: https://vietnamnet.vn/ban-gan-trieu-qua-trung-ngay-gia-lon-lai-tang-manh-hoa-phat-lai-tang-80-2333887.html