Vietnam's agri major BAF enjoys skyrocketing 444% profit growth in Q2

BAF Vietnam Agriculture JSC, which owns the "Vegetarian Pig" brand, posted impressive business results in Q2/2025 amid a volatile pork market, with after-tax profit soaring 444% year-on-year.

According to its newly released Q2/2025 financial statement, BAF, listed on the Ho Chi Minh Stock Exchange (HoSE) as BAF, recorded net revenue of over VND1.39 trillion ($53 million), up 1.6% year-on-year.

Pork sales reached more than 175,000 pigs, mainly finishing pigs, marking a 16% increase. All of this revenue came from livestock farming, as the company has scaled down its low-margin agricultural trading operations.

After deductions, its gross profit reached VND343 billion ($13.08 million), a sharp year-on-year rise of over 171%.

Notably, despite a significant rise in expenses, particularly administrative costs, which surged by 550% year-on-year, BAF still reported pre-tax profit growth of 204% to VND210 billion ($8 million).

Thanks to the strong Q2 performance, BAF’s cumulative H1 pre-tax profit reached VND351 billion ($13.38 million), up 69% from the same period last year.

Its net profit for H1 soared over 112% to VND330 billion, despite a slight revenue decline of 3.9% to more than VND2.5 trillion ($95.33 million). This impressive result was driven by livestock farming, with total pork sales reaching around 330,000 pigs.

Compared to its 2025 AGM-approved plan, BAF has achieved about 44% and nearly 52% of its full-year revenue and after-tax profit targets, respectively.

The company attributed this strong performance to its continuous expansion of herd size. Now BAF's total herd exceeds 800,000 pigs, double the figure from the same period last year.

The company is actively expanding further and expects to bring at least eight high-tech farms into operation in 2025 through a partnership with China’s Muyuan Foods Co. Ltd. These farms will have a combined capacity of approximately 17,500 breeding sows and 156,000 finishing pigs.

At the end of Q2, BAF's total assets amounted to over VND8.5 trillion ($324.11 million). Cash and deposits stood at around VND629 billion, equivalent to 43% of the beginning-of-year level.

Inventory was recorded at more than VND2.2 trillion (up 4%), mainly consisting of pigs that will be sold during the next upcycle in pork prices.

Fixed assets totaled over VND2.93 trillion ($111.73 million), a slight rise from the beginning of the year, due to the operation of two new breeding and genetic pig farms in the Central Highlands. Ongoing long-term assets reached VND999 billion (up 16% from the year outset), which includes farms scheduled to start operating in Q3/2025.

Short-term liabilities stood at nearly VND2.2 trillion ($83.89 million), down 28% from the beginning of the year, including over VND1 trillion in loans.

In the first half of 2025, BAF brought seven high-tech farms into operation, mainly located in the Central Highlands and the north-central province of Thanh Hoa.

The company also began construction of a 300,000-ton/year feed mill in the former central province of Binh Dinh (now part of Gia Lai province after a merger) to supply its farms and affiliated operations in the central and Central Highlands regions.

To date, the company has launched 43 high-tech farms and two feed mills with a total capacity of 460,000 tons per year, and expanded its SibaFood and Meat Shop retail chains.

Recently, it received in-principle investment approval for a high-tech multi-storey pig farming complex in the southern province of Tay Ninh, Vietnam's first "pig apartment" model. The facility, featuring six floors and 64,000 breeding sows, is expected to produce 1.6 million commercial pigs annually.

On the stock market, BAF closed Monday at VND34,850 ($1.33) per share.