Hoang Anh Gia Lai eyes repayment of bank debts by 2025

By Thi Ha   September 24, 2022 | 11:00 pm PT
Hoang Anh Gia Lai eyes repayment of bank debts by 2025
Hoang Anh Gia Lai’s durian orchards have entered their first harvest season. Photo by VnExpress/Thi Ha
Agricultural firm Hoang Anh Gia Lai plans to fully repay its bank loans by 2025, its chairman, Doan Nguyen Duc, said.

Its total debts fell from a peak of more than VND35 trillion (US$1.49 billion) in 2016 to VND14 trillion in mid-2022, with bank debts falling from VND28 trillion to VND8 trillion.

"This bank debt is not big, but I am determined to pay it off.... If all goes well, by 2024 or 2025 Hoang Anh Gia Lai will pay off bank debts," Duc told VnExpress.

In 2023, the company plans to sell all 104 million shares HNG to pay the bank.

"We do not intend to hold our shares for a long time, but choose the right time to sell all," Duc said.

The company expects profits to triple or quadruple next year to VND3.5-4 trillion, and plans to set aside VND1-1.5 trillion to service debts.

In 2024, in addition to pigs, chickens and bananas, the company will also sell selling durian, including to China.

It has some 1,000 hectares of durian, including 202 hectares in the Central Highlands province of Gia Lai and the rest in Laos.

Duc said the company is likely to sell non-profitable assets such as Hoang Anh Gia Lai Hospital and a number of other properties for hundreds of billions of dong to fund debt repayment.

Hoang Anh Gia Lai reported a net profit of VND781 billion for the first eight months of this year, achieving 69% of its full-year target.

"The profit target of VND1.12 trillion is likely to be achieved ahead of schedule," Duc said.

In August, the company launched the Bapi brand of pork from pigs fed exclusively on bananas, and BapiMart stores that sell pork and foods made from its banana-fed pigs in Da Nang and Ho Chi Minh City.

It plans to supply one million pigs and five million banana-eating chickens to the market next year.

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