In the first 9 months of 2024, BAF’s pork output and sales revenue more than doubled, with pork sales reaching VND2,283 billion, 1.9 times the total for the entire year of 2023. Gross Profit increased by 70% compared to the same period last year, and Gross Profit Margin (GPM) from the 3F (FEED-FARM-FOOD) livestock model exceeded 21%.
BAF Vietnam Agriculture Joint Stock Company (BAF, the Company) has just released its Q3 2024 Consolidated Financial Statement, showing significant growth in livestock operations. This growth is likely a result of continuous herd expansion throughout recent periods. BAF’s total herd has reached over 520,000 pigs, a 73% increase since the beginning of the year, with a commercial pork production of approximately 1,000,000 pigs.
In Q3 2024, pork production reached nearly 163,000 pigs, with market hogs making up the majority, a 114% increase compared to last year. The pork sales revenue reached almost VND856 billion, 2.3 times higher than the previous year. Cumulatively, in the first 9 months of 2024, total pork production exceeded 422,000 pigs, corresponding to revenue of nearly VND2,275 billion, 1.5 times the pork production and 1.9 times the revenue of pork sales for all of 2023.
Net Revenue in Q3 2024 was recorded at VND1,314 billion, an 8% increase year-over-year, with the Sale of animal husbandry products reaching nearly VND856 billion, representing 65% of Net Revenue. The Company benefited from securing feed supplies through two ‘vegan’ feed mills certified by GLOBAL GAP and FSSC 21000, coupled with a 10-20% decrease in raw feed material costs, which helped lower the Company’s Cost of goods sold (COGS). COGS rose by only 2%, lagging behind Revenue growth. Gross Profit reached nearly VND223 billion, a 55% growth year-over-year, with a GPM of 17% and the GPM of animal husbandry products reaching as high as 25%. Profit before tax (PBT) exceeded VND67 billion, a 63% rise from last year.
Source: BAF
In the first 9 months of the year, Cumulative Consolidated Net Revenue reached VND3,927 billion, an 8% increase year-over-year. Revenue structure saw a shift, with the Sale of animal husbandry products accounting for 58% of Net revenue, a significant rise from 25% in the same period last year. COGS was recorded at VND3,418 billion VND, increasing at a slower rate than Revenue growth
Gross Profit reached nearly VND509 billion, marking a 70% increase year-over-year, with the GPM improving to 13% from 8% in the same period last year. The GPM of animal husbandry products reached 21%. Administrative expenses increased slightly due to the addition of new operations, including Hai Ha Farm – the most significant farm complex in northern Vietnam, with a capacity of 5,000 sows and 60,000 market hogs – alongside several other farms.
PBT reached nearly VND275 billion, a 364% increase compared to last year.
As of the end of June 2024, the Company’s Total Assets reached nearly VND6,949 billion, an increase of 7% compared to the beginning of the period. Inventory recorded VND2,068 billion, a 30% growth, including various types of pigs that will be released to the market, in the context of expected pig prices rising above VND65,000 /kg soon.
Short-term receivables amounted to VND332 billion, a decrease of 62% compared to the same period last year, as part of the initiative to reduce agricultural business activities.
Long-term assets under construction reached VND1,091 billion VND, an increase of 21%, including farms expected to be operational in early 2025. Short-term and long-term debts amounted to VND1,867 billion, including a convertible bond issued to the International Finance Corporation (IFC) at an interest rate of 5.25% per annum for 7 years.
BAF’s financial indicators reflect a stable economic position, with the Current Ratio and Quick Ratio standing at 1.3 and 0.4, respectively
Strategic partnership signed with Muyuan – Leading Global Livestock Group
On September 16, 2024, Muyuan Foods signed a strategic partnership with BAF to transfer technology and innovative farming equipment, integrating artificial intelligence into the livestock chain operation process to ensure biosecurity and environmental friendliness. This marks Muyuan’s first strategic partner outside of China.
BAF is expected to access and implement core farming technologies such as constructing high-rise barns, precision feeding, management systems, and odor control to optimize costs and minimize disease risk, thereby significantly improving profits soon.
BAF was honored with two awards in October: “Outstanding Livestock Enterprise in Waste Management Technology” and “Outstanding Enterprise in Biosecurity Livestock” at the 2024 Vietstock Awards.
The Livestock Department organized the 2024 Vietstock Awards under the Ministry of Agriculture and Rural Development. The awards also demonstrate the capabilities of enterprises in researching and developing technologies and valuable solutions to address issues in the Vietnamese livestock industry. The Award Council applied stringent evaluation criteria to identify the most outstanding candidates in Vietnam and the region.
To achieve these accolades, BAF met all criteria, including compliance with legal regulations on quality management, applying advanced and environmentally friendly technologies, and ensuring biosecurity, disease control, and food safety. Additionally, the award prioritized enterprises that made significant contributions to social support activities and other community initiatives.