Dabaco Vietnam’s Q2 profit drops 43% as lower hog prices cut livestock margins
Company has achieved 59.4% of its full year profit target after the first six months of 2026.
Dabaco Vietnam Group posted net profit after tax of US$11.2 million for the second quarter of 2026, a 43% decline from the same period last year, as lower live hog prices weighed on earnings despite higher revenue.
The company generated revenue of US$164.8 million during the quarter, up 11.1% year on year, with improved performance from its animal feed, poultry farming and vegetable oil businesses partly offsetting weaker returns from its livestock operations.
However, falling hog prices significantly reduced profitability, causing the group’s gross margin to narrow from 21.5% to 15.4%, while gross profit fell 20.8% to US$25.3 million.
For the first six months of 2026, consolidated revenue reached US$324.6 million, representing a 12.8% increase compared with the same period in 2025, while net profit after tax dropped 34.7% to US$25.7 million.
The company said its first half earnings account for 59.4% of its full year net profit target of US$43.3 million, a goal that is already 25.9% lower than the profit achieved in 2025, reflecting expectations that pressure on live hog prices will continue through the remainder of the year.
Operating cash flow turned negative during the first half, recording an outflow of US$3.8 million compared with a positive cash flow in the corresponding period last year, while investment activities resulted in cash outflows of US$32.4 million.
Financing activities generated positive cash flow of about US$48.4 million, largely through additional borrowings, as the company increased funding to support its operations and investment programme.
Total debt rose 23.2% from the beginning of the year to US$280.6 million as of 30 June 2026, equivalent to 85% of shareholders’ equity, while total assets increased 11% to US$687.2 million.
Company management said stronger contributions from feed production, poultry farming and vegetable oil operations were not sufficient to offset the decline in livestock earnings, with lower live hog prices remaining the main factor affecting the group’s overall financial performance during the quarter.
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