Vietnam agribusiness HAGL posts H1 losses of $14.7 mln

Hoang Anh Gia Lai Agricultural JSC, a leading agricultural company in Vietnam, suffered losses of VND323 billion ($12.85 million) in Q2/2024, its 13th consecutive quarter of losses, leading to H1 losses of VND370 billion ($14.72 million).

Its Q2 revenues plummeted to VND79 billion ($3.14 million), down 48% year-on-year, and the lowest since the company’s listing in 2015, according to the company's consolidated Q2 financial statement.

Revenue from the company’s primary business segments, fruits and rubber, dropped sharply.

Fruit output fell by 58% to 3,664 tons, generating only VND46 billion ($1.83 million) in revenue. The decrease was attributed to the reduction in actively managed banana gardens to just over 833 hectares in Q2/2024 from 1,891 hectares in Q2/2023.

The company shifted focus to investing in new infrastructure and facilities for the other 1,058 hectares and recorded a VND178 billion ($7.08 million) provision for inventory price reduction.

Q2 rubber tree revenues reached VND32 billion ($1.27 million) with an output of only 896 tons due to a shortage of rubber tapping workers and low early-season yields.

Its H1 loss of VND370 billion ($14.72 million) took its total accumulated loss to VND8,472 billion ($337 million).

The company's equity dropped to VND2,387 billion ($94.95 million), while owners' capital contributions were VND11,086 billion ($440.97 million).

The company has set a revenue target of VND694 billion ($27.61 million) and a pre-tax loss target of VND120 billion ($4.77 million) for the year. To date, it has achieved just 21% of the revenue goal and exceeded their loss target three-fold.

At the end of Q2, the company’s short-term debt was VND6,210 billion ($247 million), while long-term borrowings rose from VND 2,023 billion to VND2,928 billion ($116.47 million).

Total debt amounted to VND9,138 billion ($363.48 million), approximately 3.8 times higher than the company’s equity.

The company's asset portfolio includes VND16 billion ($636,440) in cash, VND2,318 billion ($92.2 million) in inventory, VND213 billion ($8.47 million) in price reduction provisions, VND311 billion in short-term receivables, and VND71 billion in provisions.

Recently, the Ho Chi Minh Stock Exchange (HoSE) decided to delist the company's HNG shares because it had posted three consecutive years of losses: VND1,119 billion in 2021, VND3,576 billion ($142.24 million) in 2022, and VND1,098 billion ($43.68 million) in 2023.

HNG closed Tuesday session at VND3,900 ($0.16) per share.