HÀ NỘI — Asset sales was not enough to offset strong increases in expenses and a sharp fall in production in the third quarter for Hoàng Anh Gia Lai Group (HAGL).
In the July-September period, the company recorded VNĐ1.4 trillion (US$60 million) worth of financial income from selling stakes in member companies.
During the same period, extraordinary expenses reached VNĐ1.43 trillion as the company had to assess non-profitable assets and change its palm and rubber farms to fruit farms.
In the three-month period, HAGL earned VNĐ557 billion worth of revenue in the third quarter, down 60 per cent year on year.
The sharp drop in revenue was caused by the transfer of rubber firms to Trường Hải Auto Corporation (THACO) and floods in Laos that destroyed the firm’s banana farm – which is developed and managed by its member firm HAGL Agrico.
The group recorded a post-tax loss of VNĐ540 billion in the third quarter.
After nine months, total net revenue fell 66 per cent to VNĐ1.48 trillion. Gross profit almost lost 90 per cent to VNĐ240 billion.
The group posted a pre-tax loss of VNĐ1.23 trillion in nine months, a reverse from last year’s profit of VNĐ400 billion.
As of September 30, 2019, total assets and total payables stood at VNĐ41.9 trillion and VNĐ24.8 trillion, down respective VNĐ6.2 trillion and VNĐ6.5 trillion from the beginning of the year.
Short-term loans fell 42 per cent in nine months to VNĐ4.05 trillion and long-term debts was down 28 per cent to VNĐ10.7 trillion.
HAGL shares, listed on the Hồ Chí Minh Stock Exchange as HAG, fell 1.9 per cent to VNĐ4,160 per share on Wednesday. — VNS