Low pork prices, Hoang Anh Gia Lai's profits hit rock bottom

Hoang Anh Gia Lai Joint Stock Company (HAGL - Stock code: HAG) has just updated its business situation in April with net revenue reaching 563 billion VND and profit after tax at 32 billion VND .

These figures decreased by 14% and 68% respectively compared to the previous month. This is the lowest profit level since Mr. Duc's enterprise announced its monthly report, equivalent to only a profit of more than 1 billion VND /day.

HAGL leaders said that April results were mainly due to banana revenue. This not-so-positive result was due to domestic pork prices remaining low, affecting the overall results.

According to the structure, the fruit industry brought in the largest revenue with 248 billion VND . The total fruit output reached 17,522 tons, of which bananas for export were 15,151 tons and bananas used for animal feed production were 2,371 tons.

The livestock sector came next with a revenue contribution of 166 billion VND , thanks to the output of 35,133 pigs. The remaining revenue came from the ancillary sector, reaching 149 billion VND .

Pig prices drop, Hoang Anh Gia Lai's profits hit rock bottom - 1

Accumulated in the first 4 months of 2023, Mr. Duc's agricultural group recorded revenue of 2,389 billion VND and after-tax profit of 339 billion VND .

According to the plan set for 2023, HAGL shareholders agreed on the target of 5,120 billion VND in revenue and 1,130 billion VND in profit after tax. Thus, the mountain town enterprise has completed 47% of the revenue target and 30% of the profit target set for the whole year.

HAGL leaders also stated that they will build a business plan based on the policy of focusing on maintaining production and business scale no lower than 2022, determining defense rather than expansion.

The enterprise will maintain the fruit industry with a scale of 7,000 hectares of bananas, the livestock industry will also continue to operate with 10 barn clusters, with a capacity of 600,000 pigs/year (each cluster raises 2,400 sows, one sow gives birth to about 25 pigs/year).

Chairman of the Board of Directors Doan Nguyen Duc once said that the pig farming segment was not expected to be profitable this year and in fact the business results were not profitable. Currently, the price of pigs is rising, so the company is also boldly planning to try to make a profit.

The group's leader compared monitoring HAGL's operations to a very simple process: " If pork prices go up, the company goes up. If pork prices go down, HAGL will only have bananas left ."

(Source: Zing News)

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