Lof International Dairy (IDP) Q3/2026: Net Profit VND 224B, Reversing Year-Earlier Loss

Overview

Lof International Dairy (ticker IDP, UPCOM) reported Q3/2026 net revenue of nearly VND 2,148.7 billion, up 32.8% year on year, and net profit of more than VND 224 billion, reversing a net loss of nearly VND 133.7 billion in Q3/2025. Nine-month net profit reached over VND 697.5 billion, equal to 99.6% of the company’s full-year 2026 profit plan, according to its consolidated Q3/2026 financial statements.

Key Facts

• Q3/2026 net revenue: nearly VND 2,148.7 billion, up 32.8% year on year.
• Q3/2026 gross profit: nearly VND 859.6 billion, up 82.9%; gross margin rose from 29.1% to 40.0%.
• Q3/2026 net profit: more than VND 224 billion, versus a net loss of nearly VND 133.7 billion in Q3/2025.
• Selling expenses fell 11.9% to VND 520.5 billion; financial expenses rose 80% to more than VND 68.4 billion, including nearly VND 61.7 billion of interest.
• 9M/2026 net revenue: more than VND 6,127 billion (+10.2%); net profit: more than VND 697.5 billion, versus a VND 62.7 billion loss a year earlier.
• 2026 plan: VND 8,300 billion of net revenue and VND 700 billion of net profit; after three quarters, 73.8% of revenue and 99.6% of profit targets were met.
• 9M/2026 operating cash flow: VND 1,108.6 billion, versus negative VND 256.4 billion a year earlier; free cash flow near VND 707 billion after VND 401.9 billion of capex.

What Happened

Sữa Quốc tế Lof, listed on UPCOM under the ticker IDP, published its consolidated Q3/2026 financial statements showing a sharp profit recovery after a loss-making stretch. The company attributed the swing to a stronger gross margin and lower selling costs. Gross profit rose 82.9% to nearly VND 859.6 billion as the gross margin expanded to 40.0% from 29.1%, well ahead of the 32.8% revenue increase, indicating that input costs or product mix moved in the company’s favour during the quarter.

Below the gross line, the picture was mixed. Financial income rose 80.1% to more than VND 62.5 billion, and other income jumped to more than VND 73.2 billion from nearly VND 1.2 billion. Those gains offset higher financing costs, up 80% to more than VND 68.4 billion, and a 2.6% dip in administrative expenses to nearly VND 71.6 billion. The filing does not break out the composition of the other-income line. On the balance sheet, total assets rose 11.5% from the start of the year to nearly VND 8,602 billion as of 30 September 2026, while total liabilities climbed 23.4% to more than VND 5,171.5 billion.

Market Context

IDP last closed at VND 260,000 on 5 October 2026 on UPCOM, the unlisted public company market where the stock trades with wider price bands and thinner liquidity than HOSE or HNX names. The result places IDP among the stronger earnings recoveries in the Consumer Staples dairy segment, where input-cost swings and promotional spending have weighed on margins across the sector. The cash-flow reversal, from negative VND 256.4 billion in 9M/2025 to positive VND 1,108.6 billion, is a notable shift for a company that has been carrying rising debt. The article does not provide a valuation or consensus comparison for the stock.

Strategic Significance

The investment case here rests on margin durability rather than revenue growth. Nine-month revenue rose only 10.2%, yet profit swung by more than VND 760 billion year on year, meaning almost all of the earnings recovery came from gross margin expansion and cost discipline. If the 40% gross margin holds, IDP enters 2027 with an earnings base far above its 2026 plan and with free cash flow near VND 707 billion to service debt and fund the near-tripling of construction-in-progress to VND 294.4 billion. The offsetting risk is balance-sheet leverage: liabilities are growing faster than assets, interest expense is rising, and the jump in equity investments to VND 982 billion from VND 258 billion adds a layer of non-operating exposure that investors will need to underwrite separately from the dairy business.

What to Watch

• Q4/2026 and full-year 2026 results, to confirm whether the 40% gross margin is sustainable after the seasonal demand peak.
• Disclosure on the VND 73.2 billion other-income line and the VND 982 billion of equity investments, neither of which is detailed in the filing.
• The 2027 business plan, expected with the annual general meeting materials, which will show whether management treats 2026 profit as a new base.
• Debt and interest-expense trend after total liabilities rose 23.4% from the start of the year.
• Liquidity and foreign-ownership data on UPCOM, given the stock’s thin trading and VND 260,000 close on 5 October 2026.