Moc Chau Milk's Q1 profit jumps 68% as margin gains signal strong start to 2026

Moc Chau Milk (HoSE: MCM), the oldest dairy firm in Vietnam, reported a sharp rebound in profitability in the first quarter of 2026, with net profit rising 67.7% year-on-year to VND80.1 billion ($3.04 million), driven by improved margins and stronger core operations.

In Q1, the dairy firm posted VND741.6 billion ($28.16 million) in revenue, up 25% from a year earlier, while gross profit surged nearly 50% to around VND212 billion ($8.05 million).

The company’s gross margin expanded significantly to 28.6% from 24.3% in the same period last year, reflecting improved cost control and a more efficient product mix in an increasingly competitive dairy market.

The earnings growth came even as selling expenses climbed 35%, largely due to a ramp-up in advertising and promotional spending, which rose to nearly VND115 billion ($4.37 million).

The increased marketing push coincided with the launch of the company’s new brand line, “Moc Chau Creamery,” highlighting efforts to strengthen brand positioning and expand market reach.

For 2026, Moc Chau Milk targets revenue of VND3.13 trillion ($118.85 million), up more than 10% from 2025, and net profit of VND241 billion ($9.15 million), an increase of nearly 12%.

Based on first-quarter results, the company has completed about 24% of the year's revenue goal and 33% of its profit target, putting it on track to meet or potentially exceed its annual plan if momentum is sustained.

The company’s balance sheet remains robust. As of end-March, total assets stood at VND2.64 trillion ($100.25 million), with cash and bank deposits accounting for roughly VND1.44 trillion ($54.68 million), or nearly 55% of total assets.

Equity totaled VND2.35 trillion ($89.23 million), while total liabilities were limited to VND286 billion ($10.86 million), translating to a low debt-to-equity ratio of about 0.12 times.

Notably, Moc Chau Milk fully repaid its remaining short-term borrowings of VND67 billion ($2.54 million) during the quarter, effectively eliminating all financial debt. The move is expected to reduce interest costs and further strengthen financial resilience.

The company is a subsidiary of state-owned Vietnam Livestock Corporation, which holds a 59.3% stake, and is part of the broader ecosystem of top dairy enterprise Vinamilk (HoSE: VNM).

MCM shares closed at VND25,500 ($0.97) each on Friday.