Owner of G Kitchen pork chain earns more than a billion dong in profit every day

Last year, Greenfeed Vietnam - owner of the G Kitchen pork retail chain, reported after-tax profit of more than VND416 billion, equivalent to a profit of more than VND1 billion per day.

In the information disclosure table sent to the Hanoi Stock Exchange (HNX), Greenfeed Vietnam Joint Stock Company said that its after-tax profit in 2022 reached more than VND416 billion. This figure decreased by nearly a third compared to 2021.

Profits decreased but owners' equity still increased by about 470 billion to nearly 3,595 billion VND. However, the debt-to-equity ratio increased slightly to 1.71 times due to a stronger increase in total liabilities. The company has a total debt of nearly 6,150 billion VND, an increase of 16%.

Outstanding bonds recorded more than 1,000 billion VND, down more than 15% compared to 2021. This enterprise mainly has financial obligations in the bond lot issued in November 2021, maturing in June 2028. This lot pays interest periodically every 6 months at a fixed rate of 6.53% per year.

According to HNX, last year the company only paid interest once at the end of the year with a total amount of nearly 33 billion VND. The interest payment in June was not listed in the report sent to the management agency.

The VND1 trillion bond is an investment from the International Finance Corporation (IFC) of the World Bank for Greenfeed. According to the plan, the capital will be used to expand livestock and meat production. The company aims to increase pig production by 750,000 pigs by 2023, supplying more than 125,000 tons of meat per year to an additional 385,000 consumers.

Greenfeed pork products are sold at a supermarket in Thu Duc City, Ho Chi Minh City. Photo: Tat Dat — Greenfeed pork products are sold at a supermarket in Thu Duc City, Ho Chi Minh City. Photo: *Tat Dat*

Greenfeed is one of the oldest companies in the animal feed industry with a system of 10 factories in Vietnam, Cambodia, Myanmar and Laos, with a total capacity of over 2 million tons of products per year. The company claims to have over 3,000 agents and direct purchasing farms.

From its position in the animal feed sector, Greenfeed gradually entered the livestock sector and invested 50 million USD to build a core pig breeding farm system. The company chose to follow the 3F model (closed food supply chain from farm to table).

In 2018, this enterprise launched the G brand of meat and pork products, distributed through large supermarket and food store chains such as Co.op Mart, Bach Hoa Xanh, Tops Market, Kingfoodmart... and the self-developed retail chain G Kitchen. To date, this pork retail chain has 29 stores in Ho Chi Minh City.

With a profit of over VND1 billion last year, Greenfeed's business results were much more positive than those of businesses following the 3F model in particular and pig farming in general. Last year, falling pork prices and high feed costs caused Dabaco and BaF to have declining business results, while Masan Meatlife reported a loss.

This year, the price of live pigs tends to increase as supply decreases. In the past two months, the price of this item has increased sharply to around 60,000 VND/kg, the highest since the beginning of the year. This is expected to help improve the business results of the pig farming industry in the coming time.

Siddhartha

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