VietNamNet Bridge - Hoang Anh Gia Lai Group has announced the net loss of more than VND566 billion ($24 million) in the fourth quarter of 2015, the first loss of this firm since 2008.

HAGL Group Chairman Doan Nguyen Duc.

According to the group’s financial report of the fourth quarter 2015, its revenue was estimated at VND1,049 billion ($47.6 million), up 60% over the same period of 2014.

In the revenue structure, beef and sugar are the main products, which brought about VND396 billion and VND154 billion. Revenue from construction contracts reached only VND157 billion, down 40%, and rubber revenue fell by 25% to VND60 billion (less than $3 million).

Although revenue increased, the cost prices soared to VND925 billion, doubling that of the same period so profit decreased by 35% to VND123.5 billion, with profit margin at 12% only.

In the expenses in the fourth quarter, interest was up to VND326 billion compared to VND203 billion in the fourth quarter 2014. The cost of sales also rose from VND13 billion to VND33 billion.

Notably, business results of the Hoang Anh Gia Lai Group in this quarter was strongly influenced by mining activities, which recorded losses of VND396 billion. The Group said it had closed mines so it eliminated investments in the mining industry.

All these factors made the group’s VND566 billion net loss in the fourth quarter 2015. This is the first quarterly loss since the group was listed on the stock market in late 2008.

For 2015, Hoang Anh Gia Lai recorded net sales of more than VND6,253 billion, doubling the previous year. Particularly, the revenue from cows brought VND2,541 billion for the group, equivalent to 40% of the total revenue.

However, due to heavy losses from liquidation of the mining sector and the increased interest expense, the group earned net profit of only VND574 billion, down 58% from VND1,382 billion of 2014.

According to the group’s financial report, by the end of 2015 Hoang Anh Gia Lai’s due debts increased by more than VND10,000 billion to VND32,640 billion. In particular, short-term debt is VND12,792 billion and long-term debt is VND19,848 billion.

VNE