Hoang Anh Gia Lai Group (HAGL) reported an after-tax profit of VND87 billion ($3.8 million) after eight consecutive quarters of losses.
|HAGL has reported a profit after the first year of raising pigs |
According to its financial reports the second quarter and teh first six months of 2021 issued yesterday (July 26), HAGL achieved VND535 billion ($23.26 million) in net revenue in Q2, down 16 per cent on-year. This success was despite its core revenue from selling fruit decreasing 63 per cent to nearly VND193 billion ($8.4 million) due to the demerger with HAGL Agrico.
After-tax profit was VND87 billion in Q2, an increase from negative VND1.3 trillion ($56.5 million) in the same period last year, ending a streak of eight consecutive quarters of loss.
The change was brought by improving gross profit from selling goods and providing services thanks to buoyant performance in the pig industry as well as the liquidation of investments in HAGL Agrico’s group of companies and lower interest expenses.
Notably, after a year of investment, the pig farming segment recorded revenue of VND190 billion ($8.26 million), even higher than the group's core fruit segment. The group started to record revenue from selling pigs in Q4/2020. The gross profit margin of the fruit segment and pig segment were 22 and 49 per cent, respectively.
Meanwhile, cost of goods sold dropped by 30 per cent, increasing gross profit margin by 13 per cent, to 34 per cent. HAGL's Q2 gross profit reached VND181 billion ($7.87 million), up 36 per cent over the same period in 2020.
Revenue from financial activities decreased by 33 per cent while financial expenses increased by 34 per cent, causing HAGL to record a loss of VND50 billion (2.17 million) from this activity.
In the first half, HAGL achieved VND800.7 billion ($34.8 million) of net revenue, down 46 per cent on-year. Net profit was VND18.3 billion ($795,650), much less than the VND1.4 trillion ($60.87 million) loss in H1/2020.
As of June 30, HAGL had five direct subsidiaries, two indirect subsidiaries, and one associated company. Its main business is growing and trading fruit trees, warehousing, agricultural product processing, and agricultural services, hotel, and sports and recreational activities.