HAGL Agrico posts 5th consecutive quarter losses at $43 million

During the three-month period that ended September, the agriculture company of businessman Doan Nguyen Duc, owner of Hoang Anh Gia Lai football club, then-vice president of the Vietnam Football Federation’s finance department reported revenue of $20 million, down from $41 million from a year ago.

Unfavorable weather condition for 1.200-hectare banana farm in Laos cut fruit revenue to about $15 million from $33 million of third quarter of 2018 revenue.

From the beginning of the year, the company reported net losses of $75.7 million, a six fold increase against the same period of last year. Net revenue was $55.5 million, down 54% compared to the same period of last year.

Photo courtesy of HAGL Agrico

At the strategic cooperation between HAGL and Thaco’s first anniversary taking place in early September, the company’s chairman said that by 2020, fruit export will be over 400,000 tons, with revenue of about $500 million and $1billion by 2021.

HAGL Agrico will focus on expanding the area of ​​fruit farms from 18,675 hectares to 30,000 hectares.

HAGL Agrico’s HNG share was traded at VND4.150 (18 cents) on Wednesday, down 5 percent from this year’s peak on July 15.

HAGL Agrico has been growing fruits since 2016.

Last year, passion fruit, bananas and dragon fruit, along with chili, fetched the company over $60 million, or around 84 percent of its revenue. Its main markets are China and Thailand.

As of September 30, the company's total assets stood at $1.08 billion, down 247.7 million compared to the beginning of the year. Currently, HAGL holds 49% stakes at HAGL Agrico.