‘Vegetarian-fed pork’ brand owner BAF posts record quarterly profit

BAF Vietnam Agriculture JSC, known for its “vegetarian-fed pork” brand, reported a record net profit of VND206 billion ($7.82 million) in the first quarter of 2026, marking its highest quarterly earnings on record.

The company (HoSE: BAF) said in its financial statement that net revenue rose 57% year-on-year to VND1.77 trillion ($67.16 million). Cost of goods sold increased at the same pace to over VND1.76 trillion, while gross profit climbed 55% to over VND451 billion ($17.12 million).

Selling and administrative expenses rose 72% and 44% respectively, to VND61 billion ($2.32 million) and VND76 billion. Financial expenses surged 64% to more than VND111 billion, including around VND100 billion in interest costs.

Pre-tax profit reached VND211 billion ($8 million), while net profit came in at VND206 billion ($7.82 million), up 50% and 54% respectively from a year earlier and both highest quarterly figures.

The results mean BAF has achieved 21% of its full-year revenue target and 26% of its profit goal.

As of March 31, total assets stood at nearly VND12.2 trillion ($463.18 million), up 13% from the start of the year, with short-term assets accounting for more than VND5 trillion, an increase of 16%. Cash and deposits totalled over VND680 billion, down 20%.

Inventories rose 11% to more than VND1.7 trillion ($64.54 million), while short-term biological assets - mainly hogs - increased 20% to over VND1.43 trillion. Construction-in-progress reached nearly VND1.87 trillion, up 35%.

On the liabilities side, equity edged up to VND4.27 trillion ($162.11 million) from VND4.06 trillion at the end of 2025, while total liabilities rose sharply to VND7.9 trillion ($300 million), an increase of nearly VND1.19 trillion.

BAF’s management said the strong performance was driven by a recovery in hog prices, which averaged around VND62,000 ($2.35) per kg, alongside higher output of nearly 240,000 hogs, up about 50% year-on-year, supported by herd expansion and new farm operations.

Despite a 5-15% rise in feed input costs such as corn and soybean, as well as higher oil prices, the company said its integrated 3F (feed-farm-food) model helped maintain cost efficiency.

At its 2026 annual general meeting, CEO Bui Huong Giang said geopolitical tensions in the Middle East had driven oil prices to as high as $130 per barrel at times, putting pressure on global logistics costs.

Feed input prices are forecast to increase further, with corn expected to rise 5-9%, soybean meal 10-15%, and wheat 2-5% compared with 2025.

The CEO said logistics impacts may become more visible from the second quarter, as shipments arriving in Vietnam reflect higher costs, rising by $7-8 per ton.

However, BAF said the impact would be manageable, as feed costs account for about 60% of production costs and current hog prices remain high enough to offset the increase.

“Our target for 2026 is to sell 1.3 million hogs. The first quarter can be considered on track, and the second quarter remains very positive,” the CEO said.

On the Ho Chi Minh Stock Exchange, BAF shares closed Monday at VND35,900 ($1.36) apiece.