Ha Long Canning (CAN) posts record Q2 loss as revenue drops 40%

Overview

Ha Long Canning (CAN) reported a record quarterly net loss of VND 12 billion in Q2 2026, its largest quarterly loss since inception, as revenue fell 40% year-on-year to VND 95 billion. The company, listed on HNX, continues to suffer from the aftermath of the African swine fever (ASF) pork destruction incident, which has severely compressed margins and driven three consecutive quarterly losses.

Key Facts

• Q2 2026 net loss: VND 12 billion, versus a profit of VND 4 billion in Q2 2025.
• Q2 2026 revenue: VND 95 billion, down 40% year-on-year.
• Gross margin collapsed from 24% in Q2 2025 to 4% in Q2 2026.
• H1 2026 revenue: VND 204 billion, down 32% year-on-year; net loss of VND 16 billion.
• Operating cash flow improved to VND 29 billion in H1 2026, driven by receivables and inventory reductions.
• Total assets at June 30, 2026: VND 268 billion, down 31% from the start of the year.
• Debt reduced 53% to VND 62 billion; the company paid VND 180 billion in principal repayments.
• The company destroyed approximately 130 tonnes of pork contaminated with African swine fever, with the incident publicly disclosed in early 2026 but originating in September 2025.

What Happened

Ha Long Canning (CAN) released its Q2 2026 financial statements, revealing a record quarterly loss of VND 12 billion after tax, a sharp reversal from the VND 4 billion profit recorded in the same period last year. Revenue fell 40% to VND 95 billion, while cost of goods sold declined only 25%, causing gross profit to plunge 89% to VND 4 billion. The company cut selling expenses by 62% and administrative expenses by nearly half, but these reductions were insufficient to offset the gross profit decline.

The company attributed its continued struggles to the aftermath of the African swine fever pork destruction incident. In early 2026, CAN disclosed that it had destroyed approximately 130 tonnes of pork contaminated with ASF, an event that actually occurred in September 2025. The company had initially not disclosed the incident within 24 hours, arguing it was not material at the time, but the impact has proven severe, with revenue, margins, and net income all deteriorating.

Market Context

CAN shares closed at VND 22,800 on July 20, 2026, on the HNX. The stock has been under pressure as the company’s financial performance deteriorated. The broader Vietnamese consumer staples sector has been relatively stable, but CAN’s specific exposure to pork supply chain issues has set it apart. The company’s three consecutive quarterly losses and shrinking balance sheet (total assets down 31% year-to-date) have raised concerns among investors about its recovery timeline.

Strategic Significance

For long-term investors, CAN’s situation highlights the importance of supply chain integrity and crisis management in the food processing industry. The ASF incident has not only caused direct losses from product destruction but has also damaged consumer trust and pricing power, as evidenced by the gross margin collapse from 24% to 4%. The company’s aggressive debt reduction (down 53% to VND 62 billion) and improved operating cash flow suggest a conservative approach to rebuilding its financial position, but the path to profitability remains uncertain. Investors should assess whether CAN can restore margins and revenue growth in the coming quarters, or if the competitive landscape has shifted permanently.

What to Watch

• Q3 2026 earnings release: Will the company narrow its losses or return to profitability?
• Recovery in gross margin: Any improvement from the current 4% level would signal a rebound in pricing power.
• Further updates on the ASF incident: Any additional costs or legal/regulatory actions could impact results.
• Management’s guidance: Any statements on revenue recovery or new product initiatives.
• Debt levels: Continued deleveraging could strengthen the balance sheet but may limit growth investments.