HAG [NON RATED] - Earnings to improve in H2 2023 on higher banana & pork prices

- We provide an update on HAG following our last report, dated September 16, 2022.

- In H1 2023, HAG’s revenue surged 55% YoY. However, the company’s GPM dropped 3 ppts YoY, which was mainly due to lower live hog prices and higher feed costs that dragged down the profit of the pig business.

- Nevertheless, the pig business’ GPM recovered from nearly 0% in Q1 2023 to 12% in Q2 2023.