Dabaco reports a drop in net profit after tax in the first half of 2026

July 31, 2026 | 11:08

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Dabaco Vietnam Group reported net-profit after tax of VND289.12 billion ($7.5 million) in the second quarter of 2026, down 43 per cent on-year, as falling live pig prices eroded margins despite revenue growing 11.1 per cent to $170 million over the same period.

According to its financial report, feed production, poultry farming and vegetable oil operations all delivered better results than the prior-year, but a sharp decline in live hog prices in the second quarter dragged down the overall livestock segment and compressed group-level profitability.

Gross margin fell from 21.5 per cent to 15.4 per cent on year, reducing gross profit by $6.8 million to $26.1 million, a decline of 20.8 per cent on year.

For the first half, Dabaco recorded consolidated revenue of $334.8 million, up 12.8 per cent on year, while net-profit after tax dropped 34.7 per cent to $26.5 million.

The first half’s result represents 59.4 per cent of the company's full-year net profit target of $44.8 million - itself a 25.9 per cent reduction from 2025 actual earnings - reflecting the company's expectation that live hog price pressure will continue to weigh on full-year performance.

Cash flow from operations turned negative in the first six months of the year at $3.8 million, against a positive $47.2 million in the same period last year.

The company's liabilities also increased by 17 per cent to over $368 million, with $296 million being short-term debt (up 12 per cent). Short-term borrowings increased by 17 per cent to $224 million. The debt-to-equity ratio reached 85 per cent.

Dabaco set the target to reach $1.17 billion in revenue for the whole year, up 22 per cent on-year. Meanwhile, the company forecast after-tax profit to decrease 25.9 per cent on-year to $44.8 million.

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