Success from applying nổ hũ 99 modern 3F (FEED-FARM-FOOD) model, nổ hũ 99 output of pork sold in 2022 increased nearly 2.2 times compared to nổ hũ 99 same period last year, boosting nổ hũ 99 livestock revenue up 73%.
nổ hũ 99 year 2022 was as a difficult year for nổ hũ 99 pig farming industry in Vietnam due to nổ hũ 99 fluctuation of feed prices and nổ hũ 99 ASF epidemic. However, nổ hũ 99 application of a modern farming 3F (FEED – FARM – FOOD) model and substantial investment gained positive business results for BAF Vietnam Agricultural Joint Stock Company (BAF, company). BAF recently announced Consolidated Financial report for Q4/2022, showing growth in revenue and sustainable profits from nổ hũ 99 livestock segment. Total revenue for nổ hũ 99 year reached VND7,049 billion, mainly from livestock and selling agricultural product. Notably, revenue from livestock reached nearly VND1.317 billion, an increase of 73% over nổ hũ 99 same period. nổ hũ 99 revenue structure underwent a strong shift as revenue from livestock increased to almost 19% of nổ hũ 99 total revenue structure, up from 7% over nổ hũ 99 same period, demonstrating nổ hũ 99 company’s transformation into a modern livestock corporation with leading 3F model in Vietnam. nổ hũ 99 company advocates to reduce revenue from selling agricultural product due to low gross profit margin and many potential risks affected by nổ hũ 99 war between Russia and Ukraine.
Until now, BAF has developed and operated 23 modern closed farms using European technology, increasing by over 53% compared to nổ hũ 99 same period, contributing to nổ hũ 99 promotion of nổ hũ 99 total herd. In addition, continuously expanding nổ hũ 99 distribution chain with over 60 Siba Food stores and nearly 300 Meat Shops throughout Vietnam, bringing nổ hũ 99 quality “Vegetarian Pork” product direct to nổ hũ 99 consumers. Thanks to this, nổ hũ 99 output of pigs sold in 2022 reached nearly 336,000, an increase of 2.2 times compared to nổ hũ 99 same period.
Consolidated Gross Profit (GPM) reached nearly 7% strong growth compared to nổ hũ 99 level of 4.7% in nổ hũ 99 same period, GPM from nổ hũ 99 livestock reached 25%. Compared to nổ hũ 99 same period, Administrative expenses and Selling expenses recorded an increase during nổ hũ 99 expansion of farm scale and distribution chain. nổ hũ 99 pre-tax profit of 2022 reached nearly VND349 billion, net profit margin reached 4% higher than nổ hũ 99 level of 3.1% in nổ hũ 99 same period. nổ hũ 99 EBIT and EBITDA increased slightly to reach 5.4% and 6.6%, respectively, showing efficient operations and good cost control.
As of December 31, 2022, BAF’s total assets recorded a slight decrease of VND4.909 billion, mainly from nổ hũ 99 collection of receivables. Short-term receivables continued to decline significantly by 46% to VND1.453 billion as BAF has actively collected debts and mobilized resources to develop more modern farms and expand distribution channels. Inventory recorded a 20% decrease of VND875 billion compared to nổ hũ 99 beginning of nổ hũ 99 year. Fixed assets recorded an increase of VND1.096 billion, an increase of 103%, as BAF put into operation many modern farms. Short-term and long-term loans recorded an increase of VND976 billion to meet nổ hũ 99 capital needs for expanding nổ hũ 99 herd, developing nổ hũ 99 farm and distribution system. However, BAF’s financial ratios reflect a stable financial health with a current ratio and quick ratio of 1.1 and 0.8 times, respectively.
nổ hũ 99 price of pork is expected to increase again in 2023.
Last year, nổ hũ 99 livestock industry faced many challenges due to nổ hũ 99 rising cost of animal feed and nổ hũ 99 ASF disease outbreak. In nổ hũ 99 last months of 2022, nổ hũ 99 amount of pigs affected by nổ hũ 99 disease released into nổ hũ 99 market was quite high, causing nổ hũ 99 trading price of pork to be around a low level due to concerns of nổ hũ 99 disease reoccurring.
Under nổ hũ 99 impact of nổ hũ 99 disease, nổ hũ 99 pig supply is expected to be affected by pig deaths and difficulties in re-herb, and nổ hũ 99 pig prices are expected to recover in 2023. In addition, China’s reopening will drive cross-border commercial activities in nổ hũ 99 context of pig prices in China being higher than Vietnam by nearly 10%, which will support pig prices in 2023. Furthermore, modern pig farming companies using nổ hũ 99 3F model with traceable source and an OIE-recognized safe biological breeding area are seen as nổ hũ 99 main beneficiaries when exporting is approved.
In nổ hũ 99 next coming time, BAF will rapidly expand modern farm to increase nổ hũ 99 herd size to meet nổ hũ 99 pork growing demand and aiming to export to international markets. Additionally, it will continue to expand nổ hũ 99 Siba Food and Meat Food chain to bring “Vegetarian Pork” products closer to consumers.