July 30, 2026
 

Dabaco Vietnam's Q2 profit falls 43% as live hog prices weigh on livestock earnings

Despite an 11% rise in revenue, a sharp contraction in gross margin from 21.5% to 15.4% pushed net profit down sharply, with the company completing 59.4% of its full-year profit target after six months.

Dabaco Vietnam Group (DBC) reported net profit after tax of VND289.12 billion (US$11.2 million) in Q2 2026, down 43% year on year, as falling live hog prices eroded margins despite revenue growing 11.1% to VND4,252.84 billion (US$164.8 million) over the same period.

The company said feed production, poultry farming and vegetable oil operations all delivered better results than the prior-year period, but that a sharp decline in live hog prices in Q2 dragged down the overall livestock segment and compressed group-level profitability. Gross margin fell from 21.5% to 15.4% year on year, reducing gross profit by VND171.68 billion to VND653.38 billion (US$25.3 million), a 20.8% decline.

For H1 2026, Dabaco recorded consolidated revenue of VND8,377.02 billion (US$324.6 million), up 12.8% year on year, while net profit after tax fell 34.7% to VND663.16 billion (US$25.7 million). The H1 result represents 59.4% of the company's full-year net profit target of VND1,117 billion (US$43.3 million) - itself a 25.9% 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 H1 2026 at VND97.4 billion (US$3.8 million), against a positive VND1,184.3 billion in the same period last year. Investment cash outflow reached VND835.2 billion, while financing activities generated a positive VND1,249 billion, primarily from increased borrowings. Total debt rose 23.2% from the start of the year to VND7,241.2 billion (US$280.6 million) as of 30 June 2026, equivalent to 85% of total equity. Total assets stood at VND17,734.3 billion (US$687.2 million), up 11% from the start of the year.