HAGL Agrico targets $200m revenue for 2017

Thursday, Jun 15, 2017 16:37

HAGL Agrico targets $200 million in total revenue this year with livestock remaining one of its core businesses. — Photo doanhnhansaigon.vn

Hoang Anh Gia Lai Agrico (HAGL Agrico), a subsidiary of Hoang Anh Gia Lai Group, has targeted VND4.5 trillion (US$200m) in total revenue for 2017.

The figure will be half funded by selling fruit products, including dragon fruit, banana and passion fruit, worth more than VND2.57 trillion.

The remaining targeted revenue will come from selling cattle and rubber and oil palm products, which will remain the firm’s core businesses.

According to a company’s 2016 annual report that was recently released, the revenue from selling fruit produces will be recorded in the firm’s earnings for the first time in 2017.

Expected revenue from selling cattle will drop by two-thirds to VND1.24 trillion from last year’s number and that from selling rubber products increased by nearly seven times to VND745 billion, the figures show.

The company will also post a big increase in revenue following the sale of its sugar business to Thanh Thanh Cong Group for $59 million in May.

According to the firm’s chairman Doan Nguyen Duc, HAGL Agrico in 2017 will perform better than in previous years, as the company has gone through its roughest and most difficult period, in which commodity prices remained at very low levels.

The company will also take full advantage of its property and infrastructure to improve the quality and quantity of agricultural products and take part in the value chain between Viet Nam, Laos and Cambodia to export products to overseas markets.

In addition, the company will work with some partners to develop its fruit distribution channel in Viet Nam and set up a company in HCM City to exploit the domestic fruit market.

In 2016, HAGL Agrico earned total VND4.77 trillion in revenue, up 1 per cent from 2015. The company did not meet its targeted number for 2016 as its financial expense occupied a large part in total cost, profit margin of cattle raising business fell and the value of some assets got lower after being re-evaluated.

The company will present its targeted revenue and business plan for 2017 and its performance in 2016 at the upcoming annual shareholder meeting, which is scheduled on June 30. — VNS

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