HAG Net Profit Surges 161% in H1 2025 on VND 1,535B Interest Waiver

Overview

Hoang Anh Gia Lai (HAG) posted a 161% surge in net profit for the first half of 2025, reaching nearly VND 2,300 billion, primarily due to a VND 1,535 billion interest waiver from the Vietnam Debt and Asset Trading Corporation (DATC). Despite a 17% drop in Q2 revenue, the waiver boosted bottom-line results, underscoring the company’s continued dependence on debt restructuring rather than core business growth.

Key Facts

• H1 2025 net profit after tax reached VND 2,300 billion, up 161% year-on-year.
• Q2 2025 net revenue fell 17% to VND 1,923 billion, with fruit revenue down 31% to VND 1,378 billion.
• Interest waiver in H1 2025 totaled VND 1,535 billion, including VND 785 billion in Q2 alone.
• Net profit attributable to parent company shareholders was VND 2,120 billion, 2.5 times higher than H1 2024.
• HAG achieved 43% of its full-year revenue target (VND 8,624 billion) and 55% of its profit target (VND 4,202 billion).
• Chairman Doan Nguyen Duc previously stated that about half of 2025 profit would come from financial reversals after DATC’s interest reduction.
• In 2023, Eximbank AMC waived nearly VND 1,425 billion in interest for HAG.

What Happened

Hoang Anh Gia Lai (HAG) released its consolidated Q2 2025 financial statements, reporting a net profit of VND 1,126 billion for the quarter, up 117% year-on-year. For the first half, cumulative net profit reached VND 2,300 billion, a 161% increase, despite flat revenue of VND 3,707 billion. The profit surge was almost entirely attributable to a VND 1,535 billion interest waiver from DATC, which was recorded as a reduction in financial expenses.

The company’s core fruit business continued to struggle, with Q2 fruit revenue declining 31% to VND 1,378 billion. However, sales of other products and goods rose 73% to VND 462 billion, and pig sales contributed VND 76 billion. Gross profit fell 26% to VND 652 billion in Q2.

Chairman Doan Nguyen Duc had previously indicated that roughly half of the 2025 profit target would come from financial reversals following DATC’s bond interest reduction. The waiver was formally approved in April 2025.

Market Context

HAG shares closed at VND 14,000 on July 29, 2025, on the HOSE exchange. The stock has been volatile, reflecting investor uncertainty about the sustainability of earnings driven by one-off financial gains. The agriculture sector in Vietnam faces headwinds from weak fruit prices and high input costs, but HAG’s debt restructuring efforts have provided temporary relief. The company’s reliance on interest waivers raises questions about its long-term profitability without such support.

Strategic Significance

HAG’s H1 results highlight a dual narrative: successful debt restructuring versus deteriorating core operations. The interest waiver from DATC is a significant financial engineering move that has allowed the company to report strong profits, but it does not address the underlying decline in fruit revenue. For long-term investors, the key question is whether HAG can revive its agricultural business, particularly its fruit and livestock segments, to generate sustainable cash flows. The company’s ability to secure further waivers or restructure its debt will be critical, but operational turnaround remains elusive.

What to Watch

• Q3 2025 revenue and profit trends, especially fruit and pig sales volumes.
• Any additional interest waivers or debt restructuring agreements with DATC or other creditors.
• Progress on the company’s full-year targets: revenue of VND 8,624 billion and net profit of VND 4,202 billion.
• Updates on the company’s strategic shift away from fruit towards other agricultural products.
• Changes in foreign ownership limits or major shareholder transactions.