In the last quarter of the previous year, the net revenue of the agriculture giant increased by over 90 per cent compared to the same period in 2022, reaching over VNĐ5.8 trillion (US$236 million). – Photo Lộc Trời

Agricultural services and food conglomerate Lộc Trời Group Joint Stock Company (LTG) has recently released its financial report for the fourth quarter and full year, showing strong revenue growth.

In the last quarter of 2023, net revenue of the agriculture giant increased by over 90 per cent compared to the same period in 2022, reaching over VNĐ5.8 trillion (US$236 million). The cost of goods sold also rose by nearly 85 per cent to nearly VNĐ4.3 trillion. The company's gross profit reached VNĐ1.5 trillion, more than doubling the fourth quarter of 2022.

In the fourth quarter, the company's expenses all recorded significant increases. Financial expenses rose by nearly 60 per cent, selling expenses increased by 83 per cent, and notably, the management expenses quadrupled compared to the same period in 2022, reaching nearly VNĐ430 billion.

As a result, Lộc Trời reported a net profit after tax of nearly VNĐ250 billion, an increase of nearly 20 per cent compared to the same period in 2022.

Overall the agriculture giant achieved a record net revenue of nearly VNĐ16.1 trillion ($600 million), representing a growth of over 37 per cent compared to the previous year's peak.

Significantly, the grain sector emerged as the main contributor to revenue with over VNĐ11.2 trillion, experiencing a growth of nearly 75 per cent. Meanwhile, the plant protection sector decreased by over 4 per cent to just over VNĐ4.2 trillion. The seed sector generated over VNĐ700 billion, the packaging sector contributed VNĐ120 billion, and the remaining portion came from other sectors.

However, due to the significant increase in expenses, particularly interest expenses and interest expenses in affiliated companies, the company's net profit after tax for the full year of 2023 decreased by nearly 36 per cent to over VNĐ265 billion.

With a target of VNĐ400 billion in net profit, Lộc Trời only achieved 64 per cent of the set plan.

As of the end of last year, the total assets of the group reached over VNĐ11.7 trillion, a 34 per cent increase compared to the beginning of the year. Short-term receivables from customers increased to nearly VNĐ6.5 trillion, nearly tripling compared to the beginning of the year, while inventories decreased by 5 per cent to VNĐ1.97 trillion.

The company has increased borrowing to finance its business expansion, with a total financial debt of over VNĐ6.3 trillion, an increase of over 60 per cent in one year. Equity capital amounted to over VNĐ3.3 trillion, accounting for nearly 30 per cent of the total capital.

This grain group aims to achieve $1 billion in revenue by 2024, cultivate 1 million hectares of land using large-scale and mechanised production models, and reduce chemical use by 1 million litres in farmlands. – VNS