Profit in Q3/2022 reached VND 182 billion, 3.5 times higher than the same period last year. Accumulated in the first 9M 2022, revenue from livestock has doubled, boosting pre-tax profit to 83% of the 2022 plan.
BaF Vietnam Agriculture Joint Stock Company (BaF, Company) has just released its Consolidated Financial Statements for Q3/2022 with outstanding growth in revenue and sustainable profit from the livestock segment. The success of the modern breeding model under the 3F model (FEED – FARM – FOOD) and the methodical investment have contributed to the rapid development of the total herd recently. As a result, the all kinds of pork products sold in the first 9 months of the year reached nearly 228,000 heads, a sharp increase over the same period in which pork accounted for more than 52%.
Consolidated net revenue in the first months of the year reached VND4,889 billion, coming from livestock sales and sales of agricultural products. Notably, Sales from the livestock segment reached nearly VND955 billion, double the number of y-o-y sales. Revenue structure illustrated a strong shift towards revenue from the livestock segment which increased by 20% in the revenue structure compared to 5% in the same period, identifying the transformation in the strategy to become a modern livestock corporation with leading 3F model in Vietnam.
The reduction in the proportion from the agribusiness segment boosted the Gross profit growth of 21% YoY to VND 423 billion. Gross Profit Margin (GPM) reached 9%, increasing sharply from 4% in the same period of the same period, in which GPM from the livestock segment reached 49%. Selling & administration expenses recorded an increase over the same period to keep up with the operation of 20 modern pig farms and expand the distribution chain network to 60 Siba Food Stores and 250 Meat Shops. The results from the methodical investment are gradually bringing the “Vegetarian Pig” BaF the growth in Profit. Profit before tax (PBT) in Q3 2022 reached VND182 billion, 3.5 times higher than in Q3 2021. Accumulated in the first 9 months of 2022, the Company’s EBIT reached VND337 billion, completing 83% of the year plan. Net profit margin reached 6%, higher than 3% in the same period. EBIT and EBITDA margins increased slightly to 7% and 8% respectively, demonstrating efficient operation and good control of operating costs.
As of September 30, 2022, BaF’s total assets recorded VND5,199 billion, a slight decrease compared to the beginning of the period due to the collection of receivables. Short-term receivables continued to plummet by 50% to only VND 1,444 billion when BaF actively collected debts and concentrated resources to start the construction of 4 more modern and discreet farms applying modern European technology, scaling up the total number of farms to 20. Inventories reached VND 1,504 billion, up 38% compared to the beginning of the period, mainly sows and pork that will be launched in the last months of the year. Fixed assets recorded VND881 billion, up 63% when BaF put into operation a series of modern farms last year. Short-term and long-term debt increased to VND940 billion to meet the increase in herd size, development of stables and distribution system. However, BAF’s financial ratios reflect sound financial health, with the current ratio and quick ratio reaching 1.2 and 0.7 times respectively.
Affirm the quality and brand “Vegetarian Pork”
With the motto of providing the market with high-quality, delicious pork products without preservatives, BaF has paid great attention to each stage in the 3F chain. With the strength of rice production, BaF’s team of nutritionists has researched and created vegetarian bran using 100% plant-based protein ingredients. BaF’s running bran formula completely eliminates ingredients containing animal protein; is researched, rigorously screened from fresh raw materials and produced in the system of bran factories with 2 certificates of GLOBAL G.A.P. CFM 3.0 & FSSC 22000 V5.1 by BaF. Combined with breeds imported from Genesus (Canada), a modern closed breeding process, BaFlesh pork is committed to CLEAN criteria, food safety and distinct delicious quality.
Pork prices are expected to continue to increase in the last months of the year under the impact of ASF, which has severely affected supply and increased demand in the run-up to the Lunar New Year. With the rapid growth of total herd and outstanding quality, it is expected that BaF’s pork products will continue to be widely accepted and contribute to the growth of the Company’s business results in the last months of the year.