The Hog’s Woes: Executive Pay Cut Amid Quarterly Losses

Dong Nai Livestock Production Joint Stock Company (Dolico, stock code: NSS) has announced its estimated business results for the first nine months of 2024, with pork consumption reaching 1,840 tons. Revenue for the nine-month period is estimated at VND 95 billion, with a pre-tax loss of VND 1.7 billion.

In 2024, Dolico planned a total revenue of nearly VND 114 billion and a pre-tax profit of VND 5.8 billion. The loss in the first nine months has made it challenging for the company to achieve its profitability goal.

Given this situation, Dolico’s Board of Directors will increase revenue by leasing warehouses, buildings, and storefronts at the company’s offices (Bien Hoa City, Dong Nai) and other company locations.

In the last few months of the year, Dolico plans to purchase 1,000 three-blooded piglets each month for meat production to increase income and revenue. Simultaneously, they will buy 100 gilts as breeding sows every month. The cost of each batch of piglets is between VND 2-3 billion, serving the production needs of the Suoi Cao and Xuan Thanh farms.

Additionally, the company will repair and replace some of the long-standing pigsty equipment and implement epidemic prevention measures at the farms.

Dolico will also reduce the Board of Directors’ remuneration by 20% and the Supervisory Board’s by 10% starting from October this year.

Previously, the 2024 Annual General Meeting of Shareholders approved a remuneration plan of VND 414 million, unchanged from 2023. This includes VND 318 million for the Board of Directors and VND 96 million for the Supervisory Board.

Currently, Dolico’s Board of Directors comprises five members: Chairman Dinh Van Hong, Vice Chairman Dinh Ngoc Men, and members Tran Minh Phuong, Lam Hung Phuong, and Nguyen Sy Sinh. The Supervisory Board consists of three members: Head Phan Thi Hien Nhi, Ngo Thi Cam Ha, and Nguyen Minh Tien.

Dolico, established in 1978, was formerly known as Dong Nai Livestock Company, headquartered in Bien Hoa City, Dong Nai Province. The Dong Nai Food Industry Corporation is currently Dolico’s largest shareholder, holding 84.32% of its capital.

Dolico owns three pig farms and a food processing plant in Dong Nai Province. In addition to its primary business of pig farming, the company also leases premises.

In the market, NSS shares rarely trade on the matching order. The current share price is maintained at VND 2,500 per share.