August 10, 2023

Vietnam's Dabaco witnesses strong growth in Q2 2023

Vietnam's Dabaco (DBC) has achieved significant growth in its business performance, including revenue and profits, in the second quarter of 2023.

The company recently announced its business results for the second quarter and first six months of 2023. The results revealed that two key factors — include the selling price of pigs and feed input prices — that held back Dabaco's profit last year have now been reversed.

The price of live hogs recovered strongly in the second quarter, especially in May-June, an important basis for Dabaco to witness potentially better revenue and profit. Furthermore, the trend in hog prices was expected to continue to stay positive in the second half.

Meanwhile, the price of animal feed had dropped dramatically. In the last six months of 2023, it expected that a downward trend in the prices of input materials, such as corn, soybean and wheat, could happen in the global commodity market.

The falling prices of animal feed helps Dabaco reduce livestock costs, thereby increasing gross profit margin. Also, based on announcements from from animal feed producers and traders in Vietnam, from July 10, prices of all kinds of animal feed were expected to decrease from ₫100/kg to ₫400/kg (US$0.02). This would be the third price reduction in 2023.

Dabaco previously sets its profit goal for 2023 at ₫569 billion (US$23.9 million). However, a first quarter loss of ₫320 billion has put much pressure on the remaining quarters of 2023.

In the second quarter, Dabaco's profit surged to ₫326 billion (US$13.7 million). However, with this result, in the first six months of 2023, Dabaco only achieved ₫6 billion (US$252,000) profit out of the total ₫569 billion assigned by the General Meeting of Shareholders. Still, it had recently imported 630 pigs from France to supplement its herd of breeding pigs.

- Người Quan Sát