Hoang Anh Gia Lai and agricultural arm report losses in H1

Thursday, Aug 01, 2019 17:53

A five-year rubber farm of Hoang Anh Gia Lai JSC. Sales from rubber latex increased sharply from VND55 billion last year to VND119 billion in the first half of 2019. — Photo hagl.com.vn

Hoang Anh Gia Lai JSC (HAGL) and its arm Hoang Anh Gia Lai Agricultural JSC (HAGL Agrico) reported poor business results in the second quarter and first half of 2019.

Hoang Anh Gia Lai reported revenues of just VND513 billion (US$22 million) in the second quarter, equivalent to a quarter of its figure in the same period of last year. Its gross profit declined by six times to VND155 billion.

Despite its efforts in reducing interest and selling expenses, management costs increased twice. The company incurred a loss after tax of nearly VND713 billion in the second quarter.

Ending June, total revenues of the company reached VND923 billion ($39.6 million), down 68 per cent year-on-year, while its six-month loss was VND691 billion ($30.6 million), a bad result compared to a profit of more than one hundred billion dong in the first half of last year.

The company has no income from cows, real estate, chili and leasing services. In 2019’s first half, fruit sales halved to VND607 billion, while sales from rubber latex increased sharply from VND55 billion last year to VND119 billion.

It has more than 47,100ha of rubber, of which 21,789ha in Cambodia, 20,361ha in Laos and 4,972ha in Viet Nam. The company is operating a rubber latex processing factory with a capacity of 25,000 tonnes per year in Laos.

By end-June, Hoang Anh Gia Lai has total assets worth VND49.2 trillion and debts worth about VND34.2 trillion. The company is borrowing VND2.5 trillion from its owner Doan Nguyen Duc.

Early this month, the company registered to sell more than 513 million shares of HAGL Agrico during July 12 and August 10 for financial restructuring. If the transaction goes through, its ownership in the agricultural arm will decrease to 51.04 per cent from current 58 per cent.

In the meantime, HAGL Agrico posted losses after tax of VND631 billion in the second quarter, while revenues dropped 66 per cent to VND440 billion. In the first six months, its revenue reached VND779.5 billion ($33.5 million), less than half of the same period last year.

The company saw a net loss of VND737.5 billion.

It is currently borrowing VND2.9 trillion from its parent company and a short-term loan of VND1.26 trillion from Truong Hai Auto (Thaco). – VNS

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