Double push for DBC

However, DBC has also had to deal with a lot of difficulties because a lot of other businesses in the same sector are increasing the size of their production, which could lead to a drop in pig prices.

High profits

DBC reported revenue of approximately VND 3.6 trillion in Q4 2024, increasing 38% from the same quarter in 2023, according to the consolidated financial report. Consequently, its Q4 2024 after-tax profit was VND 232 billion, 37 times greater than the same period in 2023. DBC's net revenue for the entire year 2024 was VND 13,574 billion, up 22% from 2023, and its after-tax profit was close to 769 billion VND, 31 times higher than in 2023.

A 15% increase in live pig prices and a 17% drop in grain prices, which greatly increased DBC's revenue and profit margins, were the main drivers of the company's successful business performance over the past 12 months.
Additionally, DBC aimed to generate VND 28.759 trillion in revenue and VND 1.007 trillion in post-tax profit in 2025, a 30% increase over the same period the previous year.

Two driving forces

In 2024, the price of live pigs climbed by more than 30% compared to the beginning of the year. Pork prices are predicted to be high for the foreseeable future because, as the economy and tourism pick up steam, demand for pork consumption will increase once more. DBC will benefit from this in 2025. However, other companies in the same industry are actively expanding their livestock production scale to capture market share. As a result, by the end of 2025, the supply of pork might rise once more, which would cause the price of live pigs to slightly decline.

DBC gains from the vaccine project in addition to the high price of live pigs increasing its revenue and profit. The Dacovac-ASF2 African Swine Fever (ASF) vaccine project is moving well. DBC has started building a vaccine plant that can produce 200 million doses annually and is almost finished. It is anticipated that DBC's African swine fever vaccine would soon be put on the market in 2025 and turn into a lucrative business unit for this company.

VCBS estimated that with the initial capacity of DBC's vaccine production plant reaching 16% of its designed capacity (200 million doses/year), DBC will internally use 2.4 million doses for its pig herd. The remainder will be sold outside the country, which would result in 2025 revenue and profit levels of VND 1,184 billion and VND 59.2 billion, respectively.

Opportunities together with challenges

One of the few listed firms that would immediately profit from the new Livestock Law's implementation on January 1, 2025, is DBC, thanks to its 3F (Feed – Farm – Food 3F) strategy. Accordingly, animal farms in places where livestock farming is not authorized by the city, municipality, district, and residential zones will be required to relocate.
This legislative framework, which is appropriate for businesses using the 3F model, makes it easier for the cattle industry to restructure toward industrialization. Due to price changes and the high expenses of biosecurity measures to avoid infections, experts predict that thousands of small-scale farmers will have to leave the market. DBC and other closed, industrial livestock businesses will profit from this trend. 025.

According to VCBS, pig prices may continue to climb to roughly VND 81,800/kg in 2025. It is because of the impact of the Livestock Law and the spike in sales at the end of last year that the availability of live pigs has become limited. Meanwhile, the increase in pig supply from the restocking of enterprises has not been significant during this period, creating a short-term local pork supply shortage.

In light of this situation, DBC has invested in large-scale livestock projects, such as the Thanh Hóa Livestock Project (capacity: 5,600 sows, 77,400 market pigs) and the Phú Thọ Breeding Pig Project - Phase 3 (capacity: 4,800 sows, over 70,000 market pigs). The two projects' combined capacity rose by almost 25%. In order to strengthen the 3F value chain, this company is also finishing the project of a soybean oil pressing and refining plant.

To undertake the aforementioned projects, in 2024 DBC issued shares and raised almost VND 1.2 trillion, helping to expand the financial resources for the projects. In 2025, DBC may have to continue issuing shares to raise funds in order to finish the ongoing projects.

However, as of now, DBC's total debt is VND 7,531 billion, of which short-term debt is VND 6,417 billion. Given the intense competition from other businesses in the same industry, DBC will face significant challenges due to its high debt and extensive investment in large-scale projects.