Vietnam’s agri major Hoang Anh Gia Lai posts 86% Q2 profit surge on robust banana sales

Vietnamese agribusiness major Hoang Anh Gia Lai JSC (HoSE: HAG) posted an 86% jump in net profit in the second quarter, driven by strong banana exports.

HAG reported a net profit of VND483 billion ($18.37 million) on revenue of VND2.33 trillion ($88.57 million) in Q2, up 50% from a year earlier, according to its earnings statement.

For the first half of 2025, the firm recorded VND824 billion ($31.37 million) in net profit and VND3.71 trillion ($141 million) in revenue, rising 34% and 73% year-on-year, respectively.

As of end-June, HAG posted retained earnings of VND400 billion ($15.2 million), marking its first time clearing accumulated losses since Q4/2020.

The company credited the profit surge to rising banana sales after chairman Doan Nguyen Duc doubled down on the fruit in recent years, particularly exports to China.

At its 2025 AGM held in June, HAG introduced an updated growth model: “four trees, one animal” - bananas, durians, mulberries, coffee, and pigs.

Mulberries and coffee are the two newly added crops, with major investments planned in 2025. These are seen as key to generating faster returns and more stable cash flow than traditional perennial crops.

HAG cultivates 7,000 hectares of bananas across Vietnam’s Central Highlands, Laos, and Cambodia. In 2024, it harvested 277,000 tons, providing stable cash flow to support its restructuring.

Beyond China, HAG has partnered with Japan’s ANA Foods, which agreed to purchase all bananas grown on 1,500 hectares in Laos’ Bolaven Plateau.

According to China Customs, Vietnam exported 424,000 tons of bananas worth nearly $200 million to China in the first five months of 2025, surpassing the Philippines to become its largest supplier with a 49.4% market share.