Dabaco (DBC) Q3/2026: Revenue Up 37.4%, Net Profit Down 41.6% on Lower Hog Prices

Overview

Dabaco Vietnam Group (DBC, HOSE) reported Q3/2026 net revenue of more than VND 5,138 billion, up 37.4% year on year, while net profit fell 41.6% to roughly VND 200.2 billion as live hog prices declined. The result shows feed and vegetable-oil volumes expanding even as the livestock segment, historically the group’s profit engine, absorbed the price shock.

Key Facts

• Q3/2026 net revenue: over VND 5,138 billion, +37.4% year on year.
• Q3/2026 net profit: approximately VND 200.2 billion, -41.6% year on year.
• Gross profit: over VND 587.7 billion, -9.9%; gross margin narrowed from 17.4% to 11.4%.
• Financial expenses rose 63.3% to nearly VND 102.2 billion; selling expenses rose 17.4% to over VND 150.1 billion; G&A expenses rose to nearly VND 141.8 billion from over VND 116.8 billion.
• 9M/2026 net revenue: over VND 13,515 billion, +21%; net profit: over VND 863.3 billion, -36.4%.
• 9M/2026 operating cash flow: nearly VND 1,518 billion, +45.5% year on year.
• Full-year 2026 net profit plan: VND 1,117 billion; 9M completion is 77.3%.
• Total assets at 30 September 2026: nearly VND 18,535.7 billion, +16% since the start of the year; inventories over VND 3,281.6 billion, or 17.7% of assets.

What Happened

In its consolidated Q3/2026 financial statements, Dabaco attributed the revenue growth to higher animal feed consumption volumes across group companies, supported by product-mix changes, quality improvements and market policies. The vegetable-oil subsidiary also posted revenue and profit up 303% and 320% respectively versus the same quarter last year. Financial income reached over VND 43.2 billion, 2.5 times the prior-year figure, and the company recorded no profit or loss from joint ventures and associates.

Those gains were offset by the livestock segment. Dabaco’s explanation states that live hog prices fell in Q3/2026, reducing both revenue and profit at the breeding companies relative to the same period in 2025. The margin compression was visible at the gross level, where a 37.4% revenue increase translated into a 9.9% decline in gross profit. Higher financial, selling and administrative costs further weighed on the bottom line. The company did not disclose a specific average selling price for hogs in the filing.

Market Context

DBC closed at VND 16,150 on 21 October 2026 on HOSE. The stock sits in the Consumer Staples and Agriculture complex, where earnings are closely tied to the domestic hog cycle rather than to broad index momentum. Dabaco’s diversified model, spanning feed, breeding, vegetable oil and food processing, has historically cushioned but not eliminated swings in livestock profitability. The 9M result leaves the company needing roughly VND 253.7 billion in Q4 net profit to meet its VND 1,117 billion target, a quarter in which hog prices typically face seasonal demand support from year-end consumption.

Strategic Significance

The investment case for DBC rests on whether feed and downstream food volumes can outgrow the cyclicality of hog prices. Q3 shows the diversification working at the top line but not yet at the profit line: feed and vegetable oil grew, yet group net profit still fell more than 40% because livestock margins dominate. The build-out under construction in progress, including over VND 1,302.6 billion of capitalized projects such as the Dabaco Quang Ninh hog project, signals continued capacity expansion that raises fixed costs before it raises output. For long-term holders, the key variable is the hog price cycle, not volume growth, and the 11.4% gross margin is the level to monitor for signs of a trough.

What to Watch

• Q4/2026 and full-year 2026 results, and whether the VND 1,117 billion profit plan is met or revised.
• Domestic live hog price trends through the year-end demand season.
• Progress and capitalization at the Dabaco Quang Ninh and other livestock projects.
• Inventory composition, with over VND 1,241.9 billion in raw materials and nearly VND 1,347.8 billion in work in progress at 30 September 2026.
• Feed and vegetable-oil volume disclosures in the annual report, to test whether non-livestock segments can offset hog-cycle swings.