HAGL Agrico lost 14 consecutive quarters

The newly released consolidated financial report shows that Hoang Anh Gia Lai International Agriculture Joint Stock Company (HAGL Agrico – HNG) has an after-tax loss of about 182.4 billion VND. This is an improvement of about 8% compared to the third quarter of 2023 but is the 14th consecutive quarter of business losses.

The management board said the cause came from fluctuations in fruit trees, rubber and financial costs. In the third quarter, fruit production decreased by 56% to more than 2,900 tons, revenue only reached nearly 50 billion VND. The reason is that the area of ​​banana gardens harvested decreased over the same period, from 1,920 hectares to 494 hectares. HNG’s banana garden has been planted for many years, its quality and productivity are no longer effective, so the company had to stop taking care of it to focus on redoing the ground and renovating the garden to improve quality and efficiency.

In the rubber tree segment, output recorded more than 2,400 tons, revenue reached nearly 90 billion VND, doubling over the same period. However, the total area of ​​the completed garden is nearly 15,200 hectares, of which the area that can be exploited effectively is only about 32.5%. According to accounting standards, the company is accounting for depreciation costs for the entire rubber garden area that has formed a fixed asset, including gardens that are not harvested, resulting in insufficient revenue to compensate. cover costs.

At the same time, in the last quarter, financial costs incurred more than 116 billion VND, an increase of 34%. HNG spent more than 54 billion on exchange rate losses due to reassessment of foreign currency debt. And more than 62 billion VND for loan interest arising from rubber projects.

After 9 months, HAGL Agrico reached 288 billion VND in revenue, 34% lower than the same period. Loss before tax was recorded at nearly 549 billion VND, an increase of 19%. This year, the company targets a pre-tax loss of only 120 billion VND. This means that if they want to complete their plan, they must find a way to profit around 430 billion in the last quarter of the year.

For many years, HAGL Agrico has been doing business below cost when the fruit and rubber sectors continuously struggled, while livestock farming did not bring great results. As of the end of September, this enterprise’s accumulated losses amounted to nearly VND 8,648 billion.

In addition, the company also carries a lot of debt, creating great financial pressure. Total liabilities recorded about 14,089 billion, 7.6 times higher than equity. Of which, financial debt is more than 9,681 billion VND, mainly short-term loans.

In the previous semi-annual financial report, the auditor emphasized HAGL Agrico’s ability to operate continuously. The reasons were large accumulated losses, short-term debt exceeding short-term assets and violation of some terms of the loans. At that time, the company said it was continuing to implement projects to ensure cash flow for business operations, restructure some debts and work with related parties to resolve debts. In addition, the company will also receive land use rights certificates for projects in Laos and Cambodia to legally implement project investment and mobilize capital to create investment cash flow.

In early September, HNG shares were forced to delist by the Ho Chi Minh City Stock Exchange (HoSE) due to losses for three consecutive years, then had to be transferred to UPCoM. At the previous annual meeting, Mr. Tran Ba ​​Duong – Chairman of the Board of Directors of HNG – had anticipated the scenario of being delisted but according to him, this was not a cause for concern. Mr. Duong affirmed that even though the company changed its stock exchange, it still disclosed transparent information and if done well, the stock price could improve.

HAGL Agrico is implementing the enterprise model. They invest in synchronously perfecting infrastructure, mechanized machinery and equipment, and applying new technical processes to stabilize output and improve productivity and quality. The company expects this model to be effective in the near future.