May 7, 2025

Livestock companies in Vietnam enjoy strong profits as pork prices rose in Q1 2025

 

 

Vietnam's rising pork prices in Q1 2025 have brought impressive profits to the country's leading livestock companies, including BAF, Dabaco, and Hoang Anh Gia Lai.

 

BAF Vietnam Agriculture Joint Stock Company (BAF) has just released its Q1 2025 earnings report. The company recorded a pig output of 160,000 heads, up about 60% year-on-year.

 

During the quarter, BAF reported ₫1.123 trillion (US$44.2 million) in revenue from livestock activities, while the cost of sales for this segment was ₫833 billion (US$32.8 million). Post-tax profit reached ₫133 billion (US$5.2 million), marking a 13% increase over the same period last year.

 

According to BAF, pork prices stayed high throughout the quarter, averaging over ₫70,000 (US$2.75)per kilogramme, while input costs for feed remained stable. The company emphasised that 100% of its profit came from livestock farming, reflecting strong growth aligned with its strategic restructuring plan.

 

At its recent annual general meeting, BAF approved its 2025 business targets, projecting ₫ 5.6 trillion (US$220.6 million) in revenue and ₫ 638 billion (US$25.1 million) in post-tax profit. In 2024, the company's net profit surged tenfold compared to 2023, marking its second-highest performance in history.

 

Chief executive officer Bui Huong Giang stated that in 2025, profits are expected to grow significantly as 100% of the company's revenue will come from livestock activities, up from just 60% in 2024.

 

Another major player, Dabaco Vietnam Group (DBC), also reported strong Q1 2025 results. Its consolidated net revenue reached nearly ₫3.609 trillion (US$142 million), up 11% year-on-year. Dabaco's post-tax profit surged to ₫508.3 billion (US$20 million), nearly seven times higher than its Q1 2024 profit of just over ₫72.6 billion.

 

Dabaco leaders noted that disease outbreaks among poultry and livestock were well controlled in Q1 2025, enabling farmers and companies to rebuild herds. With live pig prices much higher than last year, livestock businesses saw a boost in profitability.

 

For 2025, DBC has set a revenue target of ₫  28.759 trillion (approx. US$ 1.13 billion) and post-tax profit of ₫1.007 trillion (US$39.6 million). If achieved, this will mark the second consecutive year of trillion-₫  profit for Dabaco and its highest earnings in five years.

 

At a annual general meeting, chairman Nguyen Nhu So said: "If pork prices remain at ₫60,000 (US$ 2.36) per kg , we are confident we can achieve ₫1.5 trillion (US$ 59 million) in net profit this year."

 

Hoang Anh Gia Lai JSC (HAG), led by Chairman Doan Nguyen Duc (commonly known as "Bau Duc"), also posted its Q1 2025 financial results. HAG recorded net revenue of ₫ 1.3798 trillion (US$54.4 million), up 11.2% year-on-year.

 

The company is now focused on agriculture, with bananas, durians, and pigs as core products. Most of HAG's income still comes from fruit, with the segment achieving a strong gross profit margin of 43.9%. However, pig sales plummeted to just ₫76 billion (US$3 million), down 74%.

 

Despite the drop in pig revenue, HAG posted net profit of over ₫360.4 billion (US$14.2 million), up 59.2% year-on-year. As of March 31, HAG reported accumulated losses of nearly ₫83 billion (US$3.3 million).

 

In 2024, the company achieved ₫5.693 trillion (US$224.3 million) in revenue and ₫1.056 trillion (US$41.6 million) in post-tax profit, down 11% and 40%, respectively, from the previous year. The parent company's net profit, excluding minority interest, stood at ₫1.01 trillion (US$39.8 million).

 

In 2025, HAG will continue focusing on its three key products: bananas, durians, and "banana-fed" pigs. It plans to target large corporate buyers and international traders, while implementing strategies to improve competitiveness in these markets.

- VietNamNet