GREENFEED strengthens financial position on strong performance

Following strong profit growth in the same period last year, the profit level indicates that GREENFEED continued to maintain solid business performance despite unfavourable hog price movements in the livestock sector during the first half of the year.

Operations inside a GREENFEED’s animal feed mill in Vietnam. Photo: GREENFEED

According to securities firm Vietcap, average live hog prices in the market fell by approximately 4 per cent on-year in the first six months, affected by weaker consumer demand, food safety concerns and supply-side pressures.

A notable development was the increase in shareholders’ equity. As of June 30, GREENFEED’s equity reached $379.34 million, up 37 per cent, equivalent to an increase of $101.74 million from $277.6 million a year earlier. Compared with the end of 2025, equity increased by $25.53 million, or 7.2 per cent.

During the first six months of 2026, contributed capital remained unchanged at $196.5 million, while undistributed after-tax profit increased 15 per cent, from $170.56 million to $196.15 million. In 2025, the company delivered a strong profit performance, with full-year profit after tax reaching nearly $140.2 million, up 73.6 per cent on-year.

Alongside the expansion of its operations, total liabilities stood at approximately $280.53 million, up 17.8 per cent from $238.23 million as of June 2025. However, as shareholders’ equity grew at a faster pace than liabilities, the company’s financial leverage ratios continued to improve. Specifically, the liabilities-to-total-assets ratio declined from 0.46 times to 0.43 times, while the liabilities-to-equity ratio fell from 0.86 times to 0.74 times.

Based on the reported total equity and liabilities, the company's total assets stood at approximately $659.87 million at the end of June 2026, an increase of nearly 28 per cent on-year.

Liquidity indicators also showed positive developments. The current ratio increased from 1.76 times to 1.85 times, while the quick ratio improved from 1.15 times to 1.53 times. Interest coverage remained strong at 22.1 times, indicating that the company maintained a healthy buffer to meet its financial obligations.

The company's bank borrowings stood at approximately $81.93 million at the end of June, up $11.05 million, equivalent to 15.6 per cent on-year. Other payables also increased by approximately 30 per cent to $183.26 million. The increase was in line with the company’s funding needs to support its business operations and expansion investment plans.

Another notable feature of GREENFEED’s first-half 2026 financial position was the continued reduction in its outstanding bonds. On June 15, the company spent $11.50 million to partially repurchase the GFVCH2128001 bound ahead of maturity, reducing the outstanding amount from $26.84 million to $15.34 million. This is currently the only bond outstanding issued by the company.

Following the early bond redemption, outstanding bond debt decreased by approximately 43 per cent. Accordingly, the ratio of outstanding bonds to shareholders’ equity fell sharply from 0.10 times to 0.04 times. With shareholders’ equity reaching nearly $379.34 million, bonds continued to account for a relatively small share of the company’s capital structure.

The bond was issued in November 2021 with an original value of $38.34 million and an 84-month tenor, with maturity scheduled for June 2028. The company previously repurchased $11.50 million of the bond in 2024 before purchasing an additional $11.50 million this year. Proceeds from the bond issuance were used to expand operations in breeding and commercial pigs, animal feed, slaughtering, and food processing.

The company broke ground on the expansion and upgrade of its Binh Dinh animal feed mill in March. Photo: GREENFEED

The company operates an integrated 3F Plus food value chain, with a network of factories and farms in Vietnam and several Southeast Asian markets. As a result, live hog price movements remain one of the key variables shaping the company’s business environment.

Following an unfavourable period in the first half of the year, Vietcap’s base-case scenario forecasts live hog prices to remain above $2.31 per kilogram in the second half of 2026, mainly as supply could tighten amid disease outbreaks.

Under its positive scenario, Vietcap projects average prices at around $2.46 per kilogram. Meanwhile, under its negative scenario, prices could fall below $2.31 per kilogram if herd restocking accelerates supply growth while purchasing power recovers slowly.

Another long-term trend highlighted by Vietcap is the shift from smallholder farming towards industrial-scale livestock production, driven by increasingly stringent requirements for biosecurity, livestock regulations and risks associated with African swine fever. This is a development to watch closely, as the company has built an integrated value chain spanning animal feed, breeding stock and farms through to slaughtering, processing and food products.

Following a year in which full-year profit after tax reached nearly $140.20 million, GREENFEED’s first-half 2026 results indicate that the company continued to generate profit after tax of more than $65.26 million.

At the same time, equity grew faster than liabilities, capital structure ratios improved on-year, and outstanding bond debt continued to decline. Together, these factors strengthen the company’s financial foundation and its ability to adapt in the future.

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