Agriculture firm BAF Vietnam posts 13-fold profit growth

Livestock earnings helped BAF Vietnam Agriculture JSC earn a net profit of VND154 billion ($6.1 million) in the first half of the year for a 13-fold year-on-year boost.

According to its newly released financial statement, BAF Vietnam, listed on the Ho Chi Minh Stock Exchange (HoSE) as BAF, earned revenues of over VND2.5 trillion ($99.14 million) in H1, up 5% year-on-year.

As a result, the company achieved 45% and more than 50% of the year's respective revenue and after-tax profit targets.

This outcome was made possible by the livestock segment, which accounted for 53% of the firm’s business.

In Q2/2024, while its revenue from the agricultural product sales dropped, that of the livestock segment grew strongly, reaching VND806 billion ($32 million), 4.7 times higher than the same period last year. This helped it record after-tax profits of VND34 billion ($1.35 million), 4 times higher than Q2/2023.

At the end of June, the company's total assets reached more than VND7.3 trillion (289.5 million), up 12% from the beginning of the year, with VND3.5 trillion as short-term assets.

Cash in hand and deposits surged 2.7 times over the year’s beginning to nearly VND1.2 trillion ($47.59 million) and inventories rose to VND1.9 trillion ($73.34 million), an increase of 22% year-on-year.

The company’s debt increased since the beginning of the year, to nearly VND837 billion ($33.2 million) in short-term loans (up 19%), while long-term loans rose 8% to more than VND1.2 trillion ($47.59 million).

In addition to bank debts, the company had convertible bonds worth VND485 billion ($19.23 million) issued to the International Finance Corporation (IFC), with a term of 7 years and a coupon rate 5.25% per year.

In its recent report, the owner of the "vegetarian pig" brand confirmed that its outstanding bond debt stood at about VND600 billion ($23.8 million), arising out of two packages set to mature on August 23, 2025 and July 4, 2026, respectively.

It has also distributed about 2,768 million ESOP (Employment Stock Ownership Plan) shares to its employees, the report said.

BAF shares closed Friday at VND17,150 ($0.68).