Hai Ha Confectionery (HHC) posts Q2 loss as seasonal slowdown weighs on sales

Hai Ha Confectionery (HHC) posts Q2 loss as seasonal slowdown weighs on sales

The company said the second quarter is traditionally the low season for the confectionery industry.

A Hai Ha Confectionery booth at a supermarket. — Photo courtesy of the company

Hai Ha Confectionery JSC slipped into a loss in the second quarter of 2026 as weaker consumer demand and seasonal factors weighed on sales. 

However, the company remained profitable in the first half of the year, reporting a sharp increase in cumulative earnings compared with the same period last year.

According to its second quarter financial statements, Hai Ha posted net revenue of VNĐ86.69 billion (US$3.3 million), down 26.04 per cent year-on-year. Although the cost of goods sold also declined, the decrease was insufficient to offset the drop in revenue, resulting in a sharp contraction in gross profit.

After accounting for operating expenses, the confectionery producer recorded an operating loss of VNĐ1.5 billion, compared with an operating profit of VNĐ772 million in the second quarter of 2025. 

The company also booked other losses of VNĐ135.8 million, bringing its loss before tax for the quarter to VNĐ1.68 billion. After tax, Hai Ha reported a net loss of VNĐ1.6 billion, reversing from a VNĐ573 million profit a year earlier.

Explaining the weaker performance, the company said the second quarter is traditionally the low season for the confectionery industry. It added that prolonged hot weather further dampened consumer demand, leading to lower sales revenue compared with the same period last year. 

Hai Ha said these factors were the main reasons why second quarter after-tax profit declined by more than 10 per cent year-on-year.

Despite the quarterly setback, it maintained positive earnings momentum for the first six months of the year.

The company reported profit after tax of nearly VNĐ17 billion in the first half of 2026, representing an increase of more than 74 per cent from the corresponding period last year. 

The six-month result indicates that stronger earnings in the first quarter were sufficient to offset the second-quarter loss. 

Bizhub