Vietnam's leading livestock company Dabaco reported a loss of VND321 billion ($13.68 million) in the first quarter of 2023, a record loss in the firm's history, while in the same period last year it made a profit of VND9 billion ($383,500).
The corporation, listed on the Ho Chi Minh Stock Exchange (HoSE) as DBC, earned net revenue of VND2.31 trillion ($98.6 million), down 18% year-on-year, according to its financial statement.
In the revenue structure, semi-finished products accounted for 94% of total revenue, followed by sales of trade, supermarkets, hotels and restaurants.
Dabaco no longer recorded revenue from real estate business, while in the same period last year it earned nearly VND19 billion ($809,700) from this segment.
Dabaco said the economy in Q1 was negatively affected by the post-Covid-19 period and the risk of a global recession. "The agriculture industry in general and the livestock industry in particular face many difficulties due to disease outbreaks among livestock, especially African swine fever, which continues to recur."
In addition, the cost of raising livestock increased while purchasing power decreased. The selling price of products in the market remained low for a long time, leading to a sharp decrease in the results of livestock production among its subsidiaries over the same period.
In 2023, DBC sets a revenue target of VND24.56 trillion ($1.05 billion) and after-tax profit of VND569 billion ($24.25 million).
By March 31, 2023, DBC's total assets stood at VND12.14 trillion ($517.22 million), down more than 6% compared to the beginning of the year, of which cash and cash equivalents were VND150 billion ($6.39 million). Inventories accounted for the highest proportion with 39% of total assets, hitting VND4.74 trillion ($201.95 million).
On the HoSE, the DBC share price hit VND14,650 ($0.62) per unit at Friday's close.