Hoang Anh Gia Lai JSC (code: HAG) reported the most drastic drop in revenue for the last ten years, with the record loss of VND1.743 trillion ($75.78 million).
|HAGL report the worst performance in the past decade |
According to the consolidated financial statement of HAG in the fourth quarter of 2019, the net revenue of the company decreased sharply by 44 per cent to VND603 billion ($26.2 million). Of this, sales from fruits shed VND226 billion ($9.83 million) due to separating the revenue from that of Dong Duong Co., Ltd. and Tay Nguyen Rubber One Member Co., Ltd.
Revenue from sales of goods reduced by VND82 billion ($3.57 million) while revenue from sales of latex decreased by VND67 billion ($2.9 million), while the additional revenue of VND102 billion ($4.43 million) from chilli peppers, cows, and properties from last year was also missing.
Financial revenue rose by 8 per cent thanks to interest from loans and investment, while financial costs hit VND349 billion ($15.17 million) for interests of banks' loans and bonds. Costs of sales and corporate management increased sharply by 59 and 68 per cent on-year, respectively.
Other expenses rose significantly by 118 per cent to VND282 billion ($12.26 million) due to adjusting investment by changing land-use purpose from planting rubber to fruits, so HAG reported VND271 billion ($11.78 million) in other losses.
Therefore, HAG reported a negative pre-tax profit of VND512 billion ($22.26 million) in the fourth quarter of 2019, while it made a loss of VND349 billion ($15.17 million) in the same period of the previous year. The company reported a negative VND343 billion ($14.9 million) in after-tax profit, while it was VND170 billion ($7.39 million) in the same period of the previous year.
Generally, in 2019, HAG reported VND2.082 trillion ($90.52 million) in revenue, reduced by 61 per cent on-year, which was a ten-year low. Pre-tax profit was negative VND1.743 trillion ($75.78 million), which is the largest figure ever, and after-tax profit was negative VND1.6 trillion ($69.57 million).
As of the end of 2019, HAG's total assets were at VND38.6 trillion ($1.68 billion), down VND9.5 trillion ($413 million), equivalent to 20 per cent from the beginning of the year. The company has given up several sectors like real estate and hydropower to concentrate on fruits.
Thereby, loans held by HAG declined by VND7 trillion ($304.35 million), including VND3.2 trillion ($139.13 million) of short-term loans, and VND3.8 trillion ($165.22 million) in long-term ones. Thus, interest payments decreased by 20 per cent on-year to VND1.22 trillion ($53 million).