HAGL Q1 2026 Net Profit Triples to VND 1,172.6B on VND 750B Interest Waiver

Overview

Hoang Anh Gia Lai (HAG) reported a net profit of VND 1,172.6 billion for Q1 2026, tripling from VND 360.4 billion in the same period last year. The surge was driven by a VND 750 billion interest waiver that resulted in negative financial costs of VND 576.5 billion. Revenue reached VND 1,784 billion, with fruit sales up 32% to VND 1,314.7 billion, while pig farming revenue fell sharply to VND 15.6 billion.

Key Facts

• Q1 2026 net profit: VND 1,172.6 billion, up 200% year-on-year.
• Revenue: VND 1,784 billion, with fruit sales contributing VND 1,314.7 billion (+32% YoY).
• Pig farming revenue dropped to VND 15.6 billion from nearly VND 76 billion in Q1 2025.
• Financial costs were negative VND 576.5 billion due to a VND 750 billion interest waiver on loans and bonds.
• Retained earnings as of March 31, 2026: VND 2,663.1 billion.
• The company achieved 27.9% of its 2026 profit target of VND 4,202 billion.
• On April 29, 2026, HAG successfully issued VND 2,000 billion in 36-month bonds (HAG12601), rated A by Fiin Ratings and guaranteed by Orient Commercial Bank.

What Happened

Hoang Anh Gia Lai (HAG) released its consolidated financial statements for the first quarter of 2026, showing a dramatic increase in net profit. The company attributed the profit surge to a VND 750 billion interest waiver from lenders, which resulted in negative financial costs of VND 576.5 billion. This one-time benefit lifted net profit to VND 1,172.6 billion, compared to VND 360.4 billion in Q1 2025.

Revenue growth was driven by the fruit segment, which rose 32% to VND 1,314.7 billion. In contrast, pig farming revenue contracted sharply to VND 15.6 billion from nearly VND 76 billion a year earlier. The company also outlined plans to expand coffee, mulberry, and durian plantations, and recently raised VND 2,000 billion through a bond issuance to fund coffee cultivation projects in Vietnam, Laos, and Cambodia.

Market Context

HAG shares closed at VND 16,300 on April 29, 2026, with trading volume of 3.8 million shares. The stock has been volatile amid the company’s restructuring and expansion into fruit and coffee. HAG is listed on HOSE and belongs to the food and beverage sector. The Q1 earnings beat, though heavily reliant on a non-recurring interest waiver, may support near-term sentiment, but the sustainability of profit growth depends on operational performance.

Strategic Significance

The interest waiver provides temporary relief to HAG’s balance sheet, but the company’s long-term strategy hinges on scaling its fruit and coffee plantations. The planned expansion of 7,000 ha of coffee, 1,000 ha of mulberry, and 700 ha of durian in 2026, with a target of 20,000 ha of coffee, signals a shift toward high-value crops. The successful VND 2,000 billion bond issuance, rated A and bank-guaranteed, improves funding visibility. However, the sharp decline in pig farming revenue highlights ongoing challenges in that segment.

What to Watch

• Q2 2026 earnings release to assess whether fruit revenue growth can offset the absence of interest waivers.
• Progress on coffee plantation expansion and any updates on crop yields or pricing.
• Further bond issuances or debt restructuring moves to fund the VND 4,202 billion profit target.
• Pig farming segment recovery or potential divestment.
• Foreign ownership changes and any major shareholder transactions.