The Poultry Baron: Dabaco’s Profitable Venture

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

In the fourth quarter, 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 management costs. Ultimately, Dabaco recorded a net profit of 239 billion VND, a remarkable 37-fold increase compared to the previous year’s fourth quarter.

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

Pig prices also remained high in the closing months of the year, as Dabaco effectively implemented biosecurity measures and disease prevention strategies. Consequently, the company’s business performance surpassed that of the previous year.

Similar to the previously estimated results, Dabaco achieved a substantial increase in profit for the full year. On a cumulative 12-month basis, the leading livestock company generated 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, making it Dabaco’s third-highest profit year in history (only surpassed by the 2020-2021 period). These results 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 mark a record-high revenue for the company, surpassing the previous years’ highest revenue of 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% rise. Cash and cash equivalents witnessed a significant surge of 67%, reaching over 1.8 trillion VND. Meanwhile, inventories at the end of the period stood at 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 liabilities, amounting to 6.4 trillion VND, a 10% decrease. Short-term borrowings totaled over 4.9 trillion VND, a slight increase from the start of the year. Nonetheless, with the substantial cash holdings, there is no doubt about Dabaco’s ability to fulfill its debt obligations.

Châu An

– 15:58 28/01/2025