Dabaco (DBC) Q2 2026 Net Profit Falls 43% Despite Revenue Growth on Low Hog Prices
This Aveluro analysis covers DBC (DABACO) on HOSE in the Food & Beverage sector. The classified event type is earnings miss, with negative sentiment and a deterministic market-impact score of 8.4/10. Aveluro classifies this story as a negative catalyst and risk signal for the affected stock. Source coverage came from CafeF - Doanh nghiệp, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Dabaco Vietnam Group (DBC) reported a 43% year-on-year decline in Q2 2026 net profit despite an 11% increase in revenue, driven by lower hog prices. The company’s gross margin narrowed sharply from 21.6% to 15.4%, and operating cash flow turned negative for the first half of 2026. The stock has lost over 40% of its value from the peak a year ago.
Key Facts
- Q2 2026 net profit: VND 289 billion, down 43% from Q2 2025.
- Q2 2026 revenue: VND 4,253 billion, up 11% year-on-year.
- Gross margin fell from 21.6% to 15.4% in Q2 2026.
- H1 2026 net profit: VND 663 billion, down 35% year-on-year.
- H1 2026 operating cash flow: negative VND 97 billion, versus positive VND 1,184 billion in H1 2025.
- Inventory at end-June 2026: VND 4,333 billion.
- DBC stock price: VND 16,200 on July 29, 2026, down over 40% from the VND 27,000-28,000 range in August 2025.
What Happened
Dabaco Vietnam Group (DBC) released its Q2 2026 financial statements, showing a 43% drop in net profit to VND 289 billion despite an 11% revenue increase to VND 4,253 billion. The company attributed the profit decline to lower hog prices during the quarter, which squeezed margins in its pig farming operations. Other segments, including animal feed, poultry, and vegetable oil, performed better than the prior year.
Cost of goods sold rose faster than revenue, reducing gross profit from VND 825 billion to VND 653 billion. The gross margin contracted from 21.6% to 15.4%. For the first half of 2026, cumulative net profit fell 35% to VND 663 billion, while operating cash flow turned negative VND 97 billion, compared to a positive VND 1,184 billion in the same period last year. Inventory increased to VND 4,333 billion.
Market Context
DBC shares closed at VND 16,150 on July 29, 2026, near the lowest level in a year. The stock has declined more than 40% from its peak of around VND 27,000-28,000 in August 2025. Market capitalization stands at approximately VND 6,900 billion. The stock trades on HOSE. The broader agriculture sector has been under pressure due to volatile hog prices and rising input costs.
Strategic Significance
The earnings miss underscores Dabaco’s vulnerability to hog price cycles, which directly impact its core pig farming profitability. While diversification into feed, poultry, and vegetable oil provides some buffer, the pig segment remains the primary profit driver. The negative operating cash flow and rising inventory suggest working capital strain, which may limit near-term investment capacity. Long-term investors should monitor the company’s cost control measures and any structural changes to reduce cyclical exposure.
What to Watch
- Q3 2026 hog price trends and Dabaco’s monthly selling price updates.
- Management’s guidance on cost reduction and margin recovery in the next earnings call.
- Progress on the safety review following the July 18 biogas accident at Dabaco Thanh Hoa.
- Changes in inventory levels and operating cash flow in subsequent quarters.
- Any regulatory developments affecting the livestock sector, such as import policies or disease outbreaks.