November 14, 2024
Agriculture drives growth in Vietnam's key enterprises
Agricultural production is emerging as a key contributor to revenue and profit growth for some of Vietnam's major corporations, according to third-quarter financial reports.
Hoa Phat Group (HPG), Vietnam's largest steel producer, recorded an impressive increase in its agricultural segment. While steel remains its primary revenue driver, the agriculture division saw after-tax profits grow by 80% year-on-year, surpassing its steel segment's 42% increase.
Between January and September 2024, Hoa Phat achieved an after-tax profit of VND 9.210 billion (US$362,000), a 140% rise over the same period last year. The agricultural segment contributed to this growth significantly, with swine sales increasing by 34% and egg production rising by 5%.
Hoang Anh Gia Lai Joint Stock Company (HAG) also highlighted agriculture as a key area in its third-quarter financial report. While net revenue for the first nine months fell by 17% year-on-year to VND 4.193 billion (US$165,000), the company's cost management resulted in an after-tax profit of VND 851 billion (US$33.5 million), up 21%.
The company, chaired by Doan Nguyen Duc, focuses on swine farming and cultivating bananas and durians. These efforts have gradually reduced its accumulated losses, which stood at VND 626 billion (US$24.6 million) at the end of September 2024, down significantly from last year.
Masan MEATLife (MML), known for its MEATDeli chilled meat brand, reported a return to profitability with an after-tax profit of nearly VND 20 billion (US$787,000) for the quarter. Revenue for the third quarter exceeded VND 3 billion (US$118,000), reflecting modest growth, but the company benefited from a reduction in the cost of goods sold.
The company attributed its improved gross profit margin to better performance in the chicken farm segment, as well as reduced animal feed costs.
Dabaco Vietnam Group Joint Stock Company (DBC) experienced one of the strongest agricultural growth performances. The company reported third-quarter revenue of VND 3.525 billion (US$138,000), up 3% year-on-year, with a gross profit of VND 3.312 billion (US$130,000). Net profit soared to over VND 312 billion (US$12.2 million), a 26-fold increase from the same period last year.
Dabaco leaders explained that stable feedstock prices and rising live swine prices domestically were key drivers of the company's profitability.
PAN Group (PAN) also saw growth in its agricultural operations. For the third quarter, the company reported net revenue of VND 5.083 billion (US$200,000), a 37% increase from the same period last year, with after-tax profits rising by 78% to VND 343 billion (US$13.5 million).
According to the company's general director Nguyen Thi Tra My, key segments contributing to growth included plant varieties, rice production, agricultural chemicals, and seafood exports such as shrimp and pangasius.
- Tuoi Tre Newspaper