June 5, 2025

 

BAF Vietnam Agriculture reports record high livestock profit in Q1

 

BAF Vietnam Agriculture first quarter profit from livestock reached a record high as it sold more than 160,000 pigs in the first quarter of 2025, an increase of nearly 50% over the same period last year.

Gross profit margin also improved sharply, reaching nearly 26%.

According to the Financial Report for the first quarter of 2025, the company recorded ₫ 1,100 billion (US$4.22 million) in net revenue, down 10% compared to the same period in 2024.

However, the cost of goods sold in the period decreased by 26%, helping the company's gross profit increase nearly 2.3 times compared to the first quarter of 2024. Gross profit margin also improved sharply from more than 10% to nearly 26% in the period.

BAF Vietnam's management said that revenue in the first quarter of 2025 decreased mainly due to the company cutting down on agricultural business activities with low profit margins and promoting livestock farming activities.

All net revenue in the last quarter came from pig farming, which was twice as high as in the first quarter of 2024 and almost equal to the whole of 2023, thanks to a sharp increase in pork consumption. In addition, thanks to being proactive in animal feed sources from two feed factories, when input material prices decreased, the company significantly reduced its cost of capital.

BAF Vietnam's pork consumption output in the first quarter of 2025 increased by nearly 50% compared to the same period last year.

In the first quarter of 2025, the company sold more than 160,000 pigs, of which pork accounted for the majority, marking a growth of nearly 50% compared to the first quarter of 2024. It also put into operation six high-tech farms, including five farms in the Central Highlands and 1 in Thanh Hoa, in the first 3 months of this year. At the same time, it started construction of the Binh Dinh Animal Feed Factory with a scale of 300,000 tonnes/year. Currently, BAF Vietnam owns a pig herd of nearly 800,000 pigs, twice the scale of the whole year of 2023.

As such, BAF Vietnam's net profit from business activities in the first quarter of 2025 reached ₫138 billion (US$5.29 million), 3.4 times higher than the same period last year.

However, in the first quarter of 2024, BAF Vietnam recorded other profits of up to ₫98 billion (US$3.76 billion) when selling the land on Mai Chi Tho Street, Thu Duc City, Ho Chi Minh City; meanwhile, other profits in the first quarter of 2025 were only ₫ 2.7 billion (US$103,602). Therefore, the company's after-tax profit in the first quarter of 2025 reached ₫ 132 billion (US$5.07 million), an increase of 11% compared to the first quarter of 2024.

Considering that almost all profits come from livestock activities, this is BAF Vietnam's highest livestock profit since listing.

This year, BAF Vietnam plans to achieve a revenue target of ₫5,600 billion (US$2.15 million), equivalent to 2023, but double its after-tax profit to ₫638 billion (US$24.53 million). In 2024, the company's net profit increased 10 times compared to 2023 and reached the second-highest level in its history.

After the first quarter of 2025, the company has completed 19.6% of the revenue target and 21.6% of the annual profit target.

BAF Vietnam is promoting M&A (mergers and acquisitions) of companies and livestock farms and implementing the first high-rise pig farm project in Vietnam.

Informing shareholders at the recent 2025 Annual General Meeting of Shareholders, Mr. Truong Sy Ba - Chairman of the Board of Directors, said that the average cost for 1 kilogramme (kg) of the firm's live pig is currently only about ₫45,000 (US$1.72). With the average selling price in 2024 of about ₫65,000  (US$2.49)/kg, each kg of live pig will make a profit of about ₫20,000 (US$0,76).

"This is a huge profit ," he said, also predicting that in 2025 and the following years, pork prices will continue to maintain high stability, ensuring fast and sustainable growth for BAF Vietnam.

Currently, BAF Vietnam aims to increase the pig herd to 10 million commercial pigs by 2030. To realise this plan, the company is continuously acquiring livestock farms and plans to build the first high-rise pig farm model in Vietnam by applying technologies from strategic partner Muyuan - the world's leading pig farming group.

In the past 5 months, BAF Vietnam has acquired 13 companies and livestock farms. These farms are estimated to be operational in the 2025-2026 period, with a capacity of nearly 63,000 sows and 500,000 pigs.

The company also plans to put into operation at least 8 farms applying technology from Muyuan Group, with a scale of 17,500 sows and 156,000 pigs in 2025. In particular, the high-rise pig farm project is expected to have an output of up to about 1.6 million pigs/year.

As of December 31, 2025, BAF Vietnam's total assets reached nearly ₫8,600 billion (US$3.30 million), up 15% compared to the beginning of the year. Of which, the company's cash and term deposits were over ₫1,100 billion (US$4.22 million), 2.6 times higher than the beginning of the year. The value of inventories was over ₫2,200 billion (US$8.44 million), up 4% compared to the beginning of the year, including pigs of all kinds that will be launched in the market in the next phase. The value of the company's unfinished long-term assets also increased by 11%, reaching about ₫989 billion (US$38.03 million), which are farms expected to be put into operation in the second quarter of 2025.
 

-      Tap Chi Cong Thuong Industry and Trade Magazine