Vietnam's agri major Hoang Anh Gia Lai sees profit down 41% in 2024

Vietnamese agri major Hoang Anh Gia Lai JSC (HoSE: HAGL) recorded profit after tax of VND1,057 billion ($42.14 million) on net revenue of VND5,694 billion ($227 million) in 2024.

The figures were 41% and 12% declines from 2023, according to the company's consolidated Q4 financial statement.

As of December 31, HAGL had an accumulated loss of nearly VND426 billion ($16.98 million).

HAGL set a revenue target of VND7,750 billion ($309 million) and an after-tax profit goal of VND1,320 billion ($52.63 million) for 2024. This meant it achieved only 73% of the revenue target and 80% of its profit aim.

The company reported net revenue of VND1,500 billion ($59.81 million) in Q4/2024, up 6.5% year-on-year. Of this, net revenue from fruit was the main source with VND1,248 billion ($49.76 million), up 81%.

Revenue from other segments all decreased. Specifically, revenue from pig sales dropped to VND159 billion ($6.33 million), a 66% decrease; revenue from product and goods sales fell to VND81 billion ($3.22 million), down 34%; and service revenue decreased to over VND12 billion ($478,468), down 88%.

While revenue rose, the cost of goods sold decreased significantly, leading to a sharp increase in gross profit in Q4, which reached VND587 billion ($23.4 million), four times higher than 2023.

The company attributed this growth primarily to increased exports of bananas and durians. However, the pig segment recorded a loss of VND50 billion ($2 million).

HAGL's gross profit margin improved significantly from 10.38% in Q4/2023 to 39.12% in Q4/2024. The fruit segment had the highest tally, at approximately 56.67%.

During the period, HAGL's financial expenses totaled nearly VND195 billion ($7.77 million), while sales expenses rose by nearly 52% to VND125 billion ($4.98 million). Business management expenses saw a slight decrease.

As a result, the company reported a net profit after tax of over VND205 billion ($8.17 million) in the quarter, a decline of 81% year-over-year. Profit attributable to the parent company shareholder was VND201 billion ($8.01 milllion), down 79%.

The decrease in profit was mainly due to lower interest expenses in Q4/2023, which were not repeated in Q4/2024.

As of December 31, 2024, HAGL's total assets had reached VND22,353 billion ($891.26 million), an increase of VND1,450 billion ($57.8 milion) from the start of the year.

The company’s liabilities stood at VND13,158 billion ($524.64 million), an 8% decrease compared to the beginning of the year. Total outstanding loans amounted to VND7,002 billion ($279.19 million), down VND867 billion ($34.56 million) from the start of the year.

HAGL shares closed last Friday, the last trading day before the country's Lunar New Year holiday, at VND12,200 ($0.49) apiece.