Vietnam's agri major Hoang Anh Gia Lai reports 59% surge in Q1 profit

Hoang Anh Gia Lai JSC (HAGL) reported a net profit of nearly VND341 billion ($13.19 million) in the first quarter of 2025, marking a 59% increase year-on-year.

During the quarter, the company recorded revenue of VND1.39 trillion ($53.75 million), up 12% year-on-year, according to its recently released consolidated financial statement for Q1/2025.

HAGL attributed the surge in profit primarily to strong performance in its banana business. The company also reduced financial expenses by repaying a significant portion of its bond debt.

Chairman Doan Nguyen Duc noted that prices of bananas exported to China rose sharply following a week of escalating U.S. tariff tensions beginning April 3. On April 2, U.S. President Donald Trump announced the imposition of new global tariffs, including 46% tariffs on goods imported from Vietnam.

“Amid peak tariff tensions, banana prices for exports to China surged more than 10% in just one week, reaching $12.5 per carton,” Duc said.

Despite widespread concern across the market, Duc emphasized that the new U.S. tariff policy has had no adverse impact on HAGL. The company does not export to the U.S. Its bananas are mainly shipped to China, South Korea, and Japan. Export prices to South Korea and Japan are set annually, while those for China are negotiated weekly.

The recent rise in the USD/VND exchange rate has also positively affected the company's export revenue, as most of HAGL’s input costs are denominated in Vietnamese dong. Duc estimated that this will result in a notable foreign exchange gain.

Looking ahead, agricultural products are expected to maintain strong growth. HAGL's current core products include bananas (exported to China, South Korea, and Japan), pork (sold domestically), and durian.

As of March 31, 2025, HAGL’s total assets stood at approximately VND23.48 trillion ($907.83 million). The company reported shareholders’ equity of over VND9.74 trillion and liabilities of VND12.74 trillion, and had reduced its accumulated losses to nearly VND83 billion ($3.2 million).

HAGL is listed on the Ho Chi Minh Stock Exchange (HoSE) as HAG, which hit its ceiling price on Tuesday at VND 12,150 ($0.47) apiece.