Revenue from beef cattle expected to account for 46 per cent this year.
Addressing the 2015 annual general meeting of shareholders on April 15, Hoang Anh Gia Lai (HAGL) Group’s Chairman Doan Nguyen Duc said that beef cattle would account for the majority of its revenue from 2015 onwards.
Sales of 60,000 heads is targeted this year, bringing in revenue of VND2.47 trillion ($114.5 million) and accounting for 46 per cent of revenue. “The bulk of revenue will be from beef cattle as its cycle of earnings is only six months,” Mr. Duc told the gathering. By the end of the year the number of beef cattle at the group’s farms will reach 100,000 while dairy cattle heads will grow to 13,000.
HAGL targets earning revenue of VND5.34 trillion ($247.4 million) this year. Besides revenue from beef cattle, the construction of airports in Laos is expected to bring in VND785 billion ($36.3 million). A real estate projects in Yangon, Myanmar, is estimated to fetch VND769 billion ($35.6 million), while sugarcane and rubber revenue is to reach VND749 billion ($34.7 million) and VND214 billion ($9.9 million), respectively. HAGL also plans to grow 13,000 hectares of palm oil but has no plans for increasing its corn area this year.
Mr. Duc also told shareholders about dividends for 2015, which will be 10 per cent as the group must focus their capital on developing its cattle herds. Many shareholders, however, proposed an increase to 15 per cent.
In 2014 the group’s revenue reached VND3 trillion ($141 million), gross profit VND1.2 trillion ($56.7 million), and profit after tax VND1.55 trillion ($72 million), an increase of 160 per cent against 2013.