Hoa Phat Group (HPG) Reports 11% Animal Feed Sales Growth in Q1 2026

Overview

Hoa Phat Group (HPG) reported selling nearly 46,000 tons of animal feed in the first quarter of 2026, representing an 11% year-on-year increase. Pig feed led the growth, accounting for 83% of total sales volume. This performance continues the group’s expansion in the animal feed segment, a key diversification from its core steel business.

Key Facts

• Sold nearly 46,000 tons of animal feed in Q1 2026, a year-on-year increase of 11%.
• Pig feed accounted for 83% of total sales volume, up from 79% in the same period last year.
• Implemented two price adjustments on March 21 and April 8, 2026, each about one week later than the general market to share cost pressures with customers.
• The group’s two feed mills in Hưng Yên and Đồng Nai have a combined annual capacity of 600,000 tons.
• In 2025, the animal feed segment sold over 177,000 tons, a 7.3% increase year-on-year.
• The segment’s 2025 volume of 357,000 tons was a record high since production began in 2015.
• Products are distributed through over 600 distributors nationwide under the HPFEED and BIGBOSS brands.

What Happened

According to the company’s operational update, Hoa Phat Group sold nearly 46,000 tons of animal feed in the first quarter of 2026, marking an 11% increase compared to the same period in 2025. This volume represented 53% of the company’s total feed production for the quarter. Growth was recorded in both the northern and southern regions, with the south seeing a 12.6% increase and the north a 9.7% increase. Pig feed was the primary driver, constituting 83% of total sales volume, up from 79% a year earlier. Specific product lines for piglets and fattening pigs accounted for over 58% of sales within a portfolio of more than 150 products.

The report notes that the company faced significant input cost pressures in the quarter, including a 42% increase in transport costs due to higher diesel prices and a 7-24% rise in raw material costs like corn and soybean meal, partly linked to Middle East conflicts. In response, Hoa Phat implemented two price adjustments in late March and early April 2026, deliberately timing them about a week later than general market adjustments. The company stated this delay was a strategy to share cost pressures with customers, which it believes contributed to increased market share in Q1.

Market Context

HPG shares trade on the Ho Chi Minh Stock Exchange (HOSE). The stock closed at VND 28,000 on April 15, 2026, down 1.75% on volume of 27.5 million shares. This price movement occurs against the backdrop of the company’s diversification into consumer staples, specifically animal feed, which provides a counterbalance to its core cyclical steel operations. The reported 11% volume growth in feed sales demonstrates resilience in a sector facing cost inflation and competitive pressures.

Strategic Significance

The Q1 2026 performance underscores Hoa Phat’s successful execution of its vertical integration and diversification strategy within agriculture. By growing its animal feed sales at nearly double the industry’s average rate, as noted in the context of 2025 results, the company is capturing market share. The deliberate decision to delay price hikes relative to competitors, absorbing some cost pressure to support customers, is a calculated move to build long-term distributor loyalty and volume in a fragmented market. This strengthens its position as an integrated player from feed to potential downstream meat production.

What to Watch

• Full Q1 2026 financial results, including revenue and profit figures for the animal feed segment.
• Management commentary on net margin impact from the delayed price adjustments and raw material cost trends.
• Volume and market share data for Q2 2026 to see if the customer-centric pricing strategy sustains growth.
• Updates on capacity utilization at the 600,000-ton Hưng Yên and Đồng Nai plants.
• Broader industry data on feed prices and raw material costs for comparative analysis.