HAGL Agrico plans revenue down by 20% this year

Monday, May 17, 2021 08:27

Farmers at Hoang Anh Gia Lai International Agricultural JSC (HNG). HNG's pre-tax profit is expected to be modest this year at VND16 billion, down 66.7 per cent compared to 2020. — Photo haagrico.com.vn

Hoang Anh Gia Lai International Agriculture Joint Stock Company (HAGL Agrico or HNG) has set a net revenue target of VND1.89 trillion (US$82.2 million) this year, down 20 per cent compared to 2020.

Pre-tax profit is expected to be modest at VND16 billion, down 66.7 per cent compared to last year.

Regarding the investment plan, HAGL Agrico plans to plant 1,000ha of banana trees in Attapeu province in Laos, in addition to maintaining good care of its of fruit tree cultivation areas in Viet Nam, focusing on management to increase productivity and ensure quality.

In the first quarter, HAGL Agrico’s net revenue reached VND259.8 billion, down 61 per cent over the same period in 2020. Profit after tax reached VND6.6 billion, up 136 per cent from VND2.8 billion in the first quarter of 2020. With this result, HAGL Agrico completed 13.7 per cent of the revenue plan and 31 per cent of the profit plan.

In 2020, HAGL Agrico’s net revenue reached VND2.38 trillion, up 31.14 per cent compared to 2019. Profit after tax reached VND21 billion.

According to a report on investment and project implementation in 2020, HAGL Agrico said that since 2016, the company had focused its business strategy towards growing fruit trees with the advantages of short harvest time, large consumer market and high economic efficiency.

The company still maintained a rubber garden for long-term goals, it said.

By the end of 2020, HAGL Agrico had planted fruit trees on 19,700 hectares, of which 8,794 hectares have been harvested with the main products being banana with 195,694 tonnes, mango with 1,250 tonnes and jackfruit with 536 tonnes. Rubber tree exploitation output in 2020 reached 7,913 tonnes.

In HAGL Agrico’s Extraordinary General Meeting of Shareholders held in January, the company announced plans for a private placement of shares to swap debt and supplement working capital.

The company plans to issue 550 million new shares to its creditor - Truong Hai Agriculture Joint Stock Company (Thagrico). Debt swap ratio is VND10,000 for each share. Along with that, HAGL Agrico also plan to issue more than 191 million shares to Thagrico to supplement capital for production activities and financial restructuring.

After completing the issuance of new shares, Thagrico will become the parent company of HAGL Agrico. — VNS

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