Many pig farming businesses reported strong profit growth in the third quarter of this year. Rising pig prices and lower input material prices for livestock farming are the reasons for better profits in this sector.
Recovery in pork prices helps improve business profits - Photo: BAF Vietnam Website
BAF Vietnam Agricultural Joint Stock Company, owner of the vegetarian pork chain and also in the top 5 largest livestock enterprises in Vietnam, has just announced its financial report for the third quarter of this year with a sharp increase in profits.
Low revenue growth, high profit growth
Specifically, the report shows that BAF's revenue this quarter increased by only 7% compared to the same period last year, reaching VND1,313 billion. However, the cost of goods sold increased less, and gross profit improved to VND222 billion.
Therefore, despite many expenses such as interest, sales and business management all "increasing", BAF's after-tax profit still increased by 54% over the same period, reaching more than 60 billion VND.
Ms. Bui Huong Giang - General Director of BAF - said that the third quarter profit improved significantly because the price of pork in the period had recovered after the bottom drop in the fourth quarter of last year. At the time of reporting, the price of pork remained above 60,000 VND/kg.
Meanwhile, BAF's cumulative pork output in the first nine months of this year was more than twice as high as the same period last year.
At the same time, the price of raw materials for animal feed production has also decreased compared to the previous period and remained low, contributing to reducing production costs and increasing livestock farming efficiency, according to Ms. Giang.
In the first 9 months of this year, BAF's after-tax profit reached VND 214 billion, more than 4 times higher than the same period in 2023.
Another enterprise in the livestock processing and breeding industry also recorded quite positive profits in the third quarter of this year, which is Vietnam Livestock Industry Joint Stock Company - Vissan (VSN).
According to the financial report, although revenue in the third quarter decreased to 767 billion VND, VSN still reported a profit of more than 33 billion VND, an increase of 32% over the same period.
Mr. Nguyen Ngoc An, General Director of Vissan, commented that profits have grown, but compared to the same period in 2023, the increase is low. "In the fourth quarter, Vissan expects to spend more. Therefore, it is forecasted that the company will only meet the target set in the plan for the whole year," said Mr. An.
How will pork prices be in the future?
Notably, in the third quarter, Masan MEATLife Joint Stock Company (MML) - owner of the MEATDeli chilled meat brand - reported a profit after tax of nearly 20 billion VND, ending many consecutive quarters of losses before that.
In terms of revenue, Masan MEATLife recorded more than VND 1,935 billion in the third quarter, a slight increase compared to the same period last year. However, gross profit margin has improved significantly due to reduced cost of goods sold.
Masan MEATLife leaders explained that the growth came from the revenue of the chilled meat and processed meat segments. In particular, the chicken farm segment and the reduction in animal feed costs contributed to the increase in gross profit.
Previously, the "boss" of pig farming in the North - Dabaco Vietnam Group Joint Stock Company (DBC) reported a net profit of more than 312 billion VND, 26 times higher than the same period.
Dabaco leaders also said that the prices of raw materials for animal feed production in the country and imported are relatively stable. In addition, the price of live pigs in the country has also increased, so the company is more profitable.
In addition, many foreign brands such as CP, New Hope... also invested heavily in pig farming in Vietnam. Vietdata's 2023 pig farming market report revealed that CP Vietnam had a profit of nearly 5,000 billion VND in 2022.
According to reports from market research units, after a sharp increase, the average price of live pigs nationwide turned to decrease sharply in October. Prices in all three regions decreased by about 5.7 - 10% compared to the end of September. Currently, prices fluctuate between 58,000 - 63,000 VND/kg.
However, in terms of price forecasts, many experts still believe that the price of live pigs will continue to increase in the coming time, although the increase is not as strong as in the first 5 months of the year.
In the short term, live hog prices may be supported due to reduced supply caused by losses of small-scale producers and disease outbreaks.
In addition, preparing the market for Tet season, Mr. Nguyen Ngoc An - General Director of Vissan, predicted that the price of live pigs will increase but not significantly.
Currently, live pigs are priced at 64,000 VND/kg; near the end, the price may increase to around 67,000-68,000 VND/kg. However, this increase is only temporary and short-term.
Source: https://tuoitre.vn/dai-gia-nuoi-heo-bao-lai-khung-20241119145515333.htm
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