BAF Vietnam Agriculture Joint Stock Company (BAF, Company) has just released 2021 Audited Consolidated Financial Statements with a comprehensive growth financial picture contained many bright colors about Profit and sustainability in business activities. Net revenue for the whole year of 2021 reached VND 10,435 billion, mainly coming from Sales of agricultural products and revenue from livestock production. The pigs sold in 2021 reached more than 155,180, an increase of more than 2.3 times over the same period, boosting the revenue from the livestock segment to reach VND 763 billion, up 79%. Revenue structure in 2021 has a positive shift when revenue from the livestock segment increases, accounting for 7.3% of the revenue structure, showing the transformation in the strategy of becoming the leading 3F livestock group in Vietnam.
With the decrease in proportion from the agricultural products segment, COGS decreased by 21% over the same period. GPM for the whole year of 2021 reached 5%, a sharp increase compared to 1.5% in the same period last year, of which GPM from livestock segment reached 36%. Interest expense dropped sharply by 93% to only VND 8 billion while G&A expense increased to meet the scale expansion and operation of 15 advanced technology sow and meat pig farms spread across the country. Profit before tax in 2021 reached VND 390 billion, up 574% over the same period last year. Profit after tax was therefore more than VND 322 billion, equivalent to an increase of more than 7 times between the two financial accounting years. BAF has completed fiscal year 2021 with strong business results, continuing to affirm position as one of the leading enterprises in 3F (Feed-Farm-Food) closed modern livestock industry.
At the end of the fiscal year 2021, BAF’s Total Assets recorded VND 5,457 billion, a slight increase of 4% over the same period mainly from Long-term assets with an increase of 98%. Cash and cash equivalents jumped 327% to nearly VND 291 billion, including demand deposits in banks which increased by 4 times. Short-term receivables decreased by 20% to only VND 2,863 billion when the Company advocated debt recovery. Compared to the beginning of the period, Long-term assets recorded an increase of 98% to VND 1,146 billion in which Fixed assets recorded VND 541 billion, an increase of 153% because BAF has put into operation a series of modern farms in the past year. Therefore, short-term and long-term debt increased compared to the beginning of the period to meet the increase in herd size, investment in equipment and modern barns. However, financial ratios reflected solid financial position, current ratio reached 1.1, an increasd of 11% compared to the beginning of the period; The ratios of Debt/Total Assets and Debt/Equity ws only 0.03 times and 0.11 times respectively.
Up to now, BAF currently possesses extremely strong business and development potential, founded by a series of core foundations and active competitive factors such as owning and accessing a large land bank up to 3,000 ha; modern livestock technology meets European – American standards; Optimal closed ecosystem from food input to product distribution, bringing surplus value to consumers; 3F modern closed breeding model; The vision and dedication of the leadership team…
On February 8, 2022, BAF closed the list of shareholders to hold the 2022 Annual General Meeting of Shareholders (AGM) in March 2022 to approve the 2022 business plan and related issues. In 2022, BAF will continue to operate 5 breeding farms, including 2 sows with a capacity of 5,000 sows/farm and 3 commercial meat farms with a capacity of 30,000 pigs/farm in order to continue to increase the proportion of revenue in the livestock segment, which has a gross margin of over 36%. In addition, BAF is building a modern slaughterhouse and food processing plant according to European standards – BAF Meat Binh Phuoc in order to provide the market with high quality pork products.
From the first trading day on HOSE on December 3rd, BAF stock is a few agricultural stocks with a sustainable business core and attractive to investors when the market price has continuously grown positively in recent times. BAF’s positive competitive factors and outstanding growth potential have attracted both value and opportunistic investors. On 12/2/2022, BAF closed at 55,000 VND/share.
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