Dabaco profit down 46 pct in Q2
Dabaco profit down 46 pct in Q2
Dabaco Group Joint Stock Company (Dabaco), a major food and animal feed producer, saw net profit drop by 46 percent year-on-year in the second quarter.
A pig farm of Dabaco. Photo courtesy of Dabaco.
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Dabaco’s net profit stood at VND215 billion ($9.3 million) in the second quarter, the lowest quarterly level since the third quarter of 2019, according to its latest consolidated financial statements.
Meanwhile, the company’s net revenue was VND2.596 trillion, up 17 percent against the same period last year, raising the total in the first half of this year to VND5.07 trillion, up 10 percent.
Dabaco’s operating costs, especially financial expenses, decreased sharply in the second quarter, but its cost price surged, resulting in the smaller net profit. The cost price stood at VND2.126 trillion, posting a year-on-year rise of 37.3 percent.
Dabaco said Covid-19 outbreaks hindered production, transport and sales of its products, including animal feeds, pork and poultry meat. Many Dabaco factories are located in the northern province of Bac Ninh which was hard hit by the pandemic. Outputs and prices of the products declined, while prices of materials for feed production, mostly imports, surged.
According to VnExpress surveys, one kilo of live-weight pork currently is sold for between VND52,000 and below VND60,000, the lowest over the past two years.
The Vietnam Industry and Trade Information Center under the Ministry of Industry and Trade said live-weight pork prices stood at VND56,000-57,000 per kilo in the northern region, and VND52,000-62,000 in the southern region on July 15, down around 50 percent against mid-July 2020.
