Lộc Trời revenues skyrocket in Q1 but losses worsen

Saturday, May 04, 2024 12:04

Lộc Trời’s agricultural technical staff support rice farmers. The group achieved revenues of VNĐ3.85 trillion (US$151.66 million) in the first quarter of the year, an increase of 57 per cent year-on-year. — Photo courtesy of Lộc Trời

Agricultural services and food conglomerate Lộc Trời Group JSC has announced its results for the first quarter, which show revenues rose by 57 per cent year-on-year to VNĐ3.85 trillion (US$151.66 million).

The grain segment generated over VNĐ3.28 trillion ($129.2 million), up 96 per cent.

The plant protection segment saw revenues decline by 41 per cent to VNĐ350 billion.

The seeds segment generated VNĐ140 billion, up 28 per cent, and the rest saw revenues fall by 3 per cent.

Gross profit margin for the quarter reduced to 6.4 per cent from 11.1 per cent, mainly due to domestic rice prices increasing by 20 - 30 per cent, resulting in higher costs to fulfil export contracts.

Despite the soaring revenues, the company made pre-tax losses of VNĐ86.4 billion ($3.4 million) compared to losses of VNĐ77.2 billion ($3 million) a year earlier.

However, earnings before interest taxes, depreciation, and amortisation (EBITDA) increased marginally to VNĐ65.4 billion thanks to restructuring to increase the proportion of the food sector to create a foundation for other sectors involved in the agricultural service chain. — VNS

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