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

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

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.

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

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.

VIR