The Poultry Baron: Dabaco’s Profitable Venture

1 February, 2025

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## Dabaco’s Business Performance in Q4 and Full-Year 2024

Dabaco’s Key Business Metrics for Q4 and Full-Year 2024

Source: VietstockFinance

In Q4, Dabaco reported a significant 38% year-over-year increase in revenue, surpassing 3.6 trillion VND. Gross profit reached 529 billion VND, more than doubling the figure from the same period last year, after deducting cost of goods sold.

With a substantial rise in gross profit, the remaining metrics were largely unaffected, despite a 62% increase in selling expenses and high administrative costs. Ultimately, Dabaco recorded a net profit of 239 billion VND, a 37-fold increase compared to the previous year’s fourth quarter.

The company attributed the positive results to stable prices of raw materials for domestic and imported animal feed during the fourth quarter of 2024. Livestock diseases were also under control, and farmers actively restocked their herds, leading to an increased demand for animal feed.

Hog prices remained high in the final months of the year, as Dabaco effectively implemented biosecurity measures and disease prevention practices. Consequently, the company’s performance surpassed that of the previous year.

Similar to the previously estimated results, Dabaco experienced a significant increase in profits for the full year. On a cumulative 12-month basis, the leading livestock company achieved nearly 13.6 trillion VND in revenue, a 22% year-over-year increase. Net profit reached 769 billion VND, almost 31 times higher than the previous year. This performance marks the third-highest profit year in Dabaco’s history (only surpassed by the 2020-2021 period). These results also correspond to 54% of the revenue target and exceed the after-tax profit plan approved by the General Meeting of Shareholders by 5.4%.

Source: VietstockFinance

For 2025, Dabaco has set ambitious goals, targeting nearly 28.8 trillion VND in revenue (including internal consumption). If achieved, this would be a record revenue for Dabaco, as the highest revenue in recent years has been around 11 trillion VND (in 2023). The company aims for a pre-tax profit of over 1.1 trillion VND and a net profit of approximately 1 trillion VND, representing a 30% increase compared to 2024’s results.

As of the end of 2024, Dabaco’s total assets exceeded 14 trillion VND, a nearly 9% increase from the beginning of the year. Of this, over 7.6 trillion VND was in short-term assets, a 7% increase. Cash and cash equivalents surged by 67%, reaching over 1.8 trillion VND. Inventories at the end of the period amounted to more than 5.3 trillion VND, a slight decrease.

On the capital side, short-term debt accounted for the majority of the company’s total debt, standing at 6.4 trillion VND, a 10% decrease. Short-term borrowings amounted to over 4.9 trillion VND, a slight increase from the beginning of the year. Nonetheless, with the significant cash holdings, there is no doubt about Dabaco’s ability to fulfill its debt obligations.

Chau An

– 15:58 28/01/2025