Dabaco (DBC) Announces 15% Dividend for 2025, Q1 Profit Falls 26%
This Aveluro analysis covers DBC (Tập đoàn Dabaco Việt Nam) in the Food Production sector. The classified event type is dividend announcement, with neutral sentiment and a deterministic market-impact score of 5.6/10. Source coverage came from CafeF - Thị trường chứng khoán, classified as a primary/top-tier source.
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Overview
Dabaco Group (DBC, HoSE) has approved a total dividend of 15% for fiscal year 2025, comprising 3% in cash and 12% in stock, to be executed in the second quarter of 2026. The announcement comes alongside a Q1/2026 earnings report showing net profit declined 26% year-on-year to VND 374 billion, weighed by lower hog prices and rising costs.
Key Facts
- Total dividend for 2025: 15% (3% cash, 12% stock).
- Cash dividend: VND 300 per share, total payout VND 115.4 billion.
- Stock dividend: 12 new shares for every 100 held, issuing 46.1 million new shares.
- Record date and payment expected in Q2/2026; new shares are freely transferable.
- Q1/2026 net profit: VND 374 billion, down 26% year-on-year.
- Q1/2026 revenue: VND 4,124 billion, up 14% YoY, but gross profit fell 15% due to a 25% surge in cost of goods sold.
- Total assets at March 31, 2026: nearly VND 15,700 billion, with cash and deposits of VND 2,300 billion.
- Total liabilities fell 8% to VND 7,256 billion; short-term borrowings decreased 15% to over VND 4,000 billion.
What Happened
Dabaco Group announced via a board resolution that it will pay a 15% dividend for 2025, split into a 3% cash component (VND 300 per share) and a 12% stock component. The cash dividend will require an outlay of VND 115.4 billion, sourced from retained earnings of the audited 2025 financial statements. The stock dividend will increase outstanding shares by 46.1 million units, with no trading restrictions on the new shares.
Separately, the company reported Q1/2026 results showing a 26% drop in net profit to VND 374 billion, despite a 14% revenue increase to VND 4,124 billion. The profit decline was attributed to lower hog prices and a shift in feed sales mix, combined with higher raw material costs and foreign exchange pressures. The company noted that its livestock segment suffered from weak hog prices, while the feed segment faced margin compression despite higher volumes.
Market Context
DBC shares closed at VND 22,450 on May 12, 2026, unchanged on the day with volume of 1.37 million shares. The stock trades on the Ho Chi Minh Stock Exchange (HoSE) in the Consumer Staples sector. The dividend yield of 15% (including stock) is attractive relative to the sector average, but the Q1 profit decline highlights cyclical pressures in the hog market. DBC’s balance sheet shows improving leverage, with total liabilities down 8% and short-term debt reduced 15%.
Strategic Significance
The dividend announcement signals management’s confidence in cash flow and commitment to shareholder returns, even as near-term earnings face headwinds. The stock dividend allows the company to conserve cash while rewarding shareholders. However, the Q1 profit decline underscores the cyclical nature of the livestock and feed business, which is sensitive to hog prices and input costs. Investors should monitor the recovery in hog prices and cost management initiatives to assess earnings momentum for the rest of 2026.
What to Watch
- Hog price trends in Vietnam for the remainder of 2026, as they directly impact DBC’s livestock margins.
- Q2/2026 earnings release to see if profit decline stabilizes or reverses.
- Execution of the dividend payment timeline in Q2/2026.
- Changes in raw material costs and foreign exchange rates affecting the feed segment.
- Any updates on capital expenditure or capacity expansion plans, given the drop in construction in progress.