The HAGL Group, chaired by Mr. Doan Nguyen Duc (Chairman of the Board), has just announced its business performance in the first two months of the year with net revenue of VND 1,043 billion, equivalent to the same period in 2023.
Of which, the fruit tree sector brought in VND 630 billion, the livestock sector VND 201 billion, and the ancillary sector VND 212 billion.
During this period, HAGL sold 74,459 tons of various fruits and 40,288 pigs.
According to HAGL, the increase in net revenue from the fruit tree sector was mainly due to the company’s expansion of banana plantations, resulting in higher sales volume and a revenue increase of over 55% compared to the same period in 2023.
Banana harvest at HAGL
As for the livestock sector, due to low market prices in 2023, the company limited herd expansion, resulting in lower revenue in the first two months of 2024 than expected.
However, the total net revenue of the entire industry in the first two months of 2024 of HAGL is guaranteed to be equivalent to the same period in 2023.
“Revenue in 2024 will experience a sharp increase in the third and fourth quarters when the company officially harvests a portion of the durian plantation in Vietnam (August and September) and in Laos (October and December)” – HAGL’s report expects.
Currently, HAGL is pursuing a strategy of 1 animal (pigs) and 2 trees (bananas and durian). Among them, the durian segment has a very high profit margin that according to Chairman Duc is “1 capital, 5 profits”.
Also related to HAGL, LienViet Post Bank (LPBank) has just signed a VND 5,000 billion financing contract with HAGL for Chairman Duc to invest in green agriculture in accordance with the bank’s development orientation of green credit – LPBank’s green bank.
Specifically, in phase 1, LPBank will disburse VND 3,000 billion to HAGL for investment in new planting, care, and development of 3 main products including bananas, durian, and pig farming. At the same time, LPBank will appoint representatives to participate in HAGL’s Board of Directors to directly support, advise, improve management capacity and operational efficiency of the company.
With the support funding from LPBank, HAGL sets the goal of development in the new phase: increasing the durian area to 2,000 ha and bananas to 9,000 ha in 2024.
In 2025, the Group continues to invest to increase the durian area to 3,000 ha and over 10,000 ha of bananas. It is expected that by 2026, the area of growing bananas, durian, and other economically valuable trees will reach 25,000 ha in Vietnam, Laos, and Cambodia.
