Vietnam’s meat producer’s 9-month profit surges 2,300% on pork shortage

The company’s 9-month profit set a record in the company's operating history when the amount exceeded the company's charter capital, higher than the total profit of the three previous years between 2017 and 2019.

Revenue in the reported period was VND7,154 billion ($308 million), up 40 percent from a year ago, according consolidated earning report from Dabaco, one of Vietnam’s biggest pork supplier.

In the third quarter, Dabaco's net revenue reached VND2,550 billion ($110 million), up 41 percent over the same period in 2019, while the after-tax profit reached VND387 billion ($16.7 million), 20 times higher than VND19 billion ($818,000) profit in the third quarter of 2019.

The company profit surged due to local pork price hit the threshold of over VND100,000 ($4.3) per kilogram, a record high since African swine fever killed herds leading to the severe pork shortage in several localities.

Imported pigs from Thailand and China could not help pulling down the price despite effort from the government.

Accompanying the profit growth, the market prices of Dabaco (DBC) shares on ho Chi Minh City Stock Exchange increased by several hundred percent with a record of liquidity in the past 6 months.

Dabaco moved to list on HoSE from July 2019 with a market price of less than VND19,000 ($0.8)  per share and was almost around this mark before being pushed to the bottom of VND13,260 ($0.57) at the end of March when the Covid-19 pandemic left a serious impact on the stock market.

In just two months and a half, DBC share prices increased more than 300 percent, climbing straight to the peak of VND54,860 ($2.36) apiece.

► In just 5 months, Dabaco beats 2020 whole-year profit target by 30%