Hoang Anh Gia Lai Group (stock code: HAG) has just announced its results for the first two months of the year with revenue of VND 1,043 billion, a decrease of 11.1% compared to the same period last year. Therefore, this company earns about VND 17 billion per day through banana cultivation and pig farming. Among them, the revenue from fruit trees reached VND 630 billion, the revenue from animal husbandry was VND 201 billion, and the revenue from other services was VND 212 billion.
According to HAGL, the revenue from the fruit tree sector (bananas) increased due to the company’s expansion of cultivation areas, resulting in higher banana sales, up 55% compared to the same period. For the animal husbandry sector, the market price in 2023 remained low, so the company restricted the increase, leading to revenue not meeting expectations.
The company expects a sharp increase in revenue in the third and fourth quarters of 2024 when it officially exploits a part of the durian cultivation area. Specifically, durian planted in Vietnam (main crop) will have revenue in August and September, while revenue in Laos (off-season crop) will be in the fourth quarter of 2024.
On March 4, 2024, Lien Viet Post Joint Stock Commercial Bank (LPBank) and HAGL signed a contract for a sponsorship of VND 5,000 billion, prioritizing investment in green agriculture in line with LPBank’s development direction of green credit – green bank.
In phase 1, LPBank will disburse VND 3,000 billion to promote new cultivation, care and development of 3 main products: bananas, durians, and pig farming. At the same time, LPBank will appoint representatives to participate in the BOD of HAGL Group to directly support, consult, and improve the management capacity and operational efficiency of the company.
With LPBank’s support capital, HAGL Group sets the development target in the new phase: increasing the durian area to 2,000 hectares and bananas to 9,000 hectares in 2024. In 2025, the Group will continue to invest to increase the durian area to 3,000 hectares and over 10,000 hectares of bananas. It is expected that in 2026, the area of bananas, durians, and other economically valuable trees will reach 25,000 hectares in Vietnam, Laos, and Cambodia.
Parallel to the development of the durian – fruit tree sector, HAGL Group will continue to expand clean land fund, prioritize investment in improving infrastructure, packaging plants, and packaging… in the direction of application of advanced technology and production methods to improve productivity, product quality, and contribute to labor structure transformation in agriculture.
With its advantage in the agricultural sector, which is a large land area, HAGL Group has many favorable opportunities to develop large-scale continuous farm. In addition, in the highland areas of Gia Lai and Laos, with good climate and soil fertility, HAGL Group’s fruit products have a fragrant taste and can be planted out of season for high productivity. Especially, durian not only brings high profitability but is also favored by Asian customers, while European and American countries have also started importing.
“In China, known as a large consumer market for durian, but currently only 5% of the population consumes it due to the high price (currently durian prices in China are about VND 500,000/kg). So, the potential of the durian consumption market in China is still very large,” the HAGL Group’s leaders predicted.
