HAGL Agrico (HNG) forecasts loss this year due to COVID-19
HAGL Agrico (HNG) forecasts loss this year due to COVID-19
HAGL Agrico has adjusted its business targets for 2021 due to the impact of the COVID-19, causing a plunge in the output and quality of fruit and rubber products.
HAGL Agrico has revised its targets for this year due to the negative impact of COVID-19
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The new targets were announced at the annual shareholders' meeting of International Agriculture Hoang Anh Gia Lai JSC (HAGL Agrico) on June 4.
HAGL Agrico has forecast a revenue of VND1.46 trillion ($63.5 million) and an overall loss of VND84 billion ($3.65 million) this year, a significant reduction from the VND2.1 trillion ($91.3 million) and VND16 billion ($695,650) set at the extraordinary shareholder meeting in January.
The representative of the Board of Directors explained that the disruptions of the COVID-19 pandemic in Laos and Cambodia caused difficulties in transporting agricultural equipment to the group's farms. The technical staff, employees, and contractors working on its projects under construction also had to be isolated when they crossed the border, extending timelines and expenditures.
Besides, the lack of capital and employees (due to lack of finances to to pay wages) made the capacity and quality of products plunge. Additionally, many of the group's fruit farms lacked water for irrigation because the water and electricity infrastructure systems did not meet technical quality standards.
In 2020, the group reportrf a 31 per cent increase in net revenue to VND2.37 trillion ($103 million) with VND21 billion ($913,040) of after-tax profit.
HAGL Agrico currently manages 335,749 hectares of land, including 27,376ha in Laos to grow banana and pineapple and 8,373ha in Cambodia to grow banana, mango, and jackfruit.
This year, the group expects to invest VND1.024 trillion ($44.5 million) to enhance the quality of its cultivating area and fruit farms.
