HÀ NỘI — Hoàng Anh Gia Lai Joint Stock Company (HAG) has announced its consolidated third-quarter earnings, with post-tax profits hitting nearly VNĐ403.2 billion (US$17.3 million), 3.3 times higher than in the same period last year.

This is an impressive number on the back of the company’s loss of VNĐ3.7 billion in the second quarter of this year.

In the third quarter, HAG’s net revenue reached VNĐ1.52 trillion, up 20.8 per cent from the third quarter last year. Sales from fruits accounted for nearly 60.8 per cent.

Capital cost declined in most segments, helping lift the company’s gross profit to VNĐ740 billion, double that of the same period in 2017. Gross margin recorded strong growth of 56.7 per cent, up from 23.3 per cent.

Its financial income also increased sharply from VNĐ294 billion in the last period to VNĐ740 billion in the third quarter, thanks to a profit of VNĐ516 billion from the sale of shares of Hoàng Anh Construction and Development House JSC.

Ending in September, HAG posted a total revenue of VNĐ4.4 trillion, completing 71.3 per cent of the yearly target. Profit before tax reached VNĐ519.8 billion, exceeding the yearly target by 160 per cent.

However, its financial expenses increased 33.6 per cent to VNĐ442.7 billion, with interest expense making up VNĐ407.5 billion of the total. Cost of sales and corporate management also rose 53 per cent and 21 per cent, respectively.

In the first nine months of the year, HAG’s interest expense amounted to VNĐ2.85 trillion on total liabilities of over VNĐ31.3 trillion, up 33.4 per cent over the beginning of the year.

Other expenses also soared to VNĐ785.2 billion, nearly four times higher than the same period last year. Most of these costs were not clearly explained.

HNG posts losses

One of HAG’s main subsidiaries, Hoàng Anh Gia Lai Agricultural Joint Stock Company (HNG), unexpectedly posted a loss of VNĐ227.5 billion in the third quarter despite seeing revenue rise 14 per cent to over VNĐ1 trillion.

For the period ending in September, the company incurred a loss of VNĐ174 billion, a poor result compared to a profit of VNĐ953 billion in the same period of last year.

The loss was caused by rising expenses while financial and other incomes declined substantially.

Shares of both companies rose on Friday morning. HNG climbed nearly 4 per cent to VNĐ14,700 ($0.63) per share while shares of HAG rose nearly 2 per cent to VNĐ5,180 ($0.22) per share. — VNS