AsemconnectVietnam - With a loss after tax of VND546 billion after 9 months of 2024, HNG increased its accumulated loss to VND8,648 billion. This loss level also far exceeded the target of only a pre-tax loss of VND120 billion in 2024 approved by the General Meeting of Shareholders.

Hoang Anh Gia Lai International Agriculture Joint Stock Company (HAGL Agrico, code HNG - UPCoM) has just announced its financial statements for the third quarter of 2024 with net revenue reaching VND141 billion, down 12% compared to the same period last year. Due to operating below cost price (VND187 billion), HNG suffered a gross loss of VND47 billion, but this was a significant decrease compared to the gross loss of VND101 billion in the same period in 2023.
In terms of expenses, except for financial expenses, which increased by 34% to VND117 billion in this period; sales expenses and business management expenses decreased by 58% and 72% to VND2.7 billion and VND5 billion, respectively. As a result, HNG reported a loss after tax of VND182 billion in the third quarter of 2024, a slight decrease compared to the loss of VND199 billion last year.
HNG said that fruit tree output in the third quarter was 2,903 tons, down 56% year-on-year, resulting in revenue of only VND49.7 billion. The reason is that the harvested banana garden area decreased compared to the same period (from 1,920 ha to 494 ha), because the perennial gardens, the quality and productivity were not effective, so they had to stop taking care of them, focusing on leveling and renovating.
In the rubber sector, the output in the third quarter reached more than 2,401 tons, generating revenue of VND89.9 billion. The reason is that the total area of completed rubber gardens is more than 15,000 ha, while the effective exploitation area is only 4,932 ha. The company is accounting for depreciation expenses for the entire area of rubber gardens that have been formed (including gardens that are not harvested), leading to revenue not being able to cover the costs.
At the same time, the Company had VND116.4 billion in financial expenses incurred during the period, including: VND54.2 billion in exchange rate losses due to revaluation of foreign currency-based debts and VND62.2 billion in interest expenses arising from previous loan principals of rubber and oil palm projects. The combination of the above factors caused the Company to continue to incur losses.
In the first 9 months of 2024, HAGL Agrico brought in VND288 billion in net revenue, down 34%, but the after-tax loss was up to VND546 billion (the same period lost VND446 billion) due to business below cost price, thereby increasing HNG's accumulated loss to 8,648 billion VND. The 9-month loss also far exceeded the target of only VND120 billion in pre-tax loss approved by the 2024 HNG Shareholders' Meeting.
By the end of the third quarter, HNG's total assets increased by 13% compared to the beginning of the year, to VND15,948 billion. Most of HNG's assets are long-term assets, including: VND5,443 billion of fixed assets; VND5,620 billion of unfinished basic construction costs, mainly costs for developing fruit and rubber gardens.
In addition, HNG has nearly VND108 billion in cash, up 42% compared to the beginning of the year; VND245.4 billion of short-term receivables, down 59%; and VND2,130.8 billion of inventories, up 13%.
On the other hand, HNG has VND14,088.8 billion in payables, up 19% compared to the same period. HNG's short-term and long-term debts are VND8,271 billion and VND1,410 billion, respectively.
N.Nga
Source: VITIC/Tinnhanhchungkhoan