Hoang Anh Gia Lai Joint Stock Company (HAG) has announced its consolidated third-quarter earnings, with post-tax profits hitting nearly VND403.2 billion (US$17.3 million), 3.3 times higher than in the same period last year. This is an impressive number on the back of the company’s loss of VND3.7 billion in the second quarter of this year.
In the third quarter, HAG’s net revenue reached VND1.52 trillion, up 20.8 per cent from the third quarter last year. Sales from fruits accounted for nearly 60.8 per cent.
Capital cost declined in most segments, helping lift the company’s gross profit to VND740 billion, double that of the same period in 2017. Gross margin recorded strong growth of 56.7 per cent, up from 23.3 per cent.
Its financial income also increased sharply from VND294 billion in the last period to VND740 billion in the third quarter, thanks to a profit of VND516 billion from the sale of shares of Hoang Anh Construction and Development House JSC.
Ending in September, HAG posted a total revenue of VND4.4 trillion, completing 71.3 per cent of the yearly target. Profit before tax reached VND519.8 billion, exceeding the yearly target by 160 per cent.
However, its financial expenses increased 33.6 per cent to VND442.7 billion, with interest expense making up VND407.5 billion of the total. Cost of sales and corporate management also rose 53 per cent and 21 per cent, respectively.
In the first nine months of the year, HAG’s interest expense amounted to VND2.85 trillion on total liabilities of over VND31.3 trillion, up 33.4 per cent over the beginning of the year.
Other expenses also soared to VND785.2 billion, nearly four times higher than the same period last year. Most of these costs were not clearly explained.
HNG posts losses
One of HAG’s main subsidiaries, Hoang Anh Gia Lai Agricultural Joint Stock Company (HNG), unexpectedly posted a loss of VND227.5 billion in the third quarter despite seeing revenue rise 14 per cent to over VND1 trillion.
For the period ending in September, the company incurred a loss of VND174 billion, a poor result compared to a profit of VND953 billion in the same period of last year.
The loss was caused by rising expenses while financial and other incomes declined substantially.
Shares of both companies rose on Friday morning. HNG climbed nearly 4 per cent to VND14,700 ($0.63) per share while shares of HAG rose nearly 2 per cent to VND5,180 ($0.22) per share.