HAGL reports strong growth in profit in Q3

A Bapi store of HAGL. — Photo courtesy of the company

Hoang Anh Gia Lai JSC (HAGL, HoSE: HAG) just released its consolidated business results in the third quarter of this year with net revenue of more than VND1.44 trillion (US$58,035), a gain of 160 per cent year-on-year.

In its revenue structure, revenue from fruit accounted for the largest proportion, with a value of VND577 billion, up 162 per cent on-year. Sales of pigs increased by nearly 200 per cent to VND540 billion. Moreover, revenue from selling products and goods also reached VND241 billion, a rise of 184 per cent over last year.

However, the cost of capital grew at a faster speed than revenue, leading to a small increase of 59 per cent in gross profit to VND281 billion, while profit margin gradually decreased to more than 19 per cent in the third quarter of 2022.

During the period, selling expenses increased by VND20 billion to nearly VND59 billion as the advances in fruit and merchandise sales led to increases in transportation costs and outsourced services. In contrast, general and administrative expenses fell sharply by VND276 billion year-on-year. The company explained it was due to the reduction in the provision for receivables.

In the third quarter, HAGL's financial revenue declined by 11 per cent to VND118 billion, while financial expenses also plunged 76 per cent over last year.

Regarding other activities, other operating expenses during the period reduced VND10 billion to VND7 billion thanks to the revaluation of some inefficient assets.

As a result, HAGL posted a profit after tax of nearly VND370 billion in the third quarter, 17 times higher than the same period last year.

In the first nine months of the year, HAGL's net revenue reached VND3.47 trillion, up 154 per cent, with a profit after tax of VND892 billion, 30 times higher than the same period last year.

In 2022, it sets a target of net revenue of VND4.82 trillion, and profit after tax of VND1.12 trillion. After three business quarters, the company has completed 72 per cent of the revenue plan and nearly 80 per cent of the profit plan.

As of the end of September, the company's total assets reached more than VND19.3 trillion, a slight increase of 5 per cent compared to the beginning of the year, while its short-term receivables edged up 10 per cent to VND7.2 trillion and inventories jumped 152 per cent compared to the end of last year. — VNS