Hoang Anh Gia Lai International Agriculture Joint Stock Company (HAGL Agrico) reported revenue of 216 billion VND in its first half-year financial report, achieving only 20% of its annual plan. Fruit sales contributed 153 billion VND, almost double the same period last year. The remaining revenue came mainly from rubber sales.

After deducting the cost of goods sold, HAGL Agrico's gross profit was 42 billion VND, a significant improvement compared to the loss of 262 billion VND in the first half of last year. However, a sharp increase in interest expenses to 230 billion VND, coupled with the cost of writing off inefficient assets, eroded all profits from core business activities. The company's pre-tax loss was approximately 260 billion VND, about 100 billion VND less than the same period last year.

This result extends the company's string of losses since the end of 2020 and increases the accumulated loss to 9,643 billion VND. It is likely that HAGL Agrico will continue to report losses in the coming quarters, as the company's management expects a loss of up to 854 billion VND this year.

In the newly released financial report, the auditing unit expressed concerns about HAGL Agrico's ability to continue operating due to the accumulated losses and short-term debts exceeding short-term assets. However, the company's management stated that they are continuing to implement projects to ensure operating cash flow, restructure some debts, and work with related parties to resolve outstanding debts.

As of the end of June, HAGL Agrico's total assets were over 18,280 billion VND, an increase of nearly 1,600 billion VND compared to the beginning of the year. The company's debt stands at over 16,600 billion VND, of which about 94% is short-term debt.

Thaco Agri, the agricultural arm of Truong Hai Auto Corporation (Thaco), is HAGL Agrico's largest creditor with outstanding debts of over 9,330 billion VND. These are unsecured loans to supplement working capital with an interest rate of 6.5-8.5% per year.

Tran Ba Duong, Chairman of HAGL Agrico, stated earlier this year that the company would only stop incurring losses when profits from banana plantations are sufficient to offset the cost of writing off inefficient orchards. As of the end of 2024, the company's cultivated area reached 35,757 ha. Of this, 27,383 ha are used for growing bananas, mangoes, pomelos, and raising cattle in Laos.

Mr. Duong directly owns 50.76 million shares, equivalent to 4.58% of HAGL Agrico's capital. Truong Hai Auto Corporation, where Mr. Duong serves as chairman, owns 306 million shares, equivalent to 27.63%.

On the stock market, HAGL Agrico's shares (HNG) are currently trading at around 6,500 VND. Since the beginning of the year, the market price has at times reached nearly 8,000 VND, the highest in the past 3 years.

Phuong Dong