Nutreco Company Limited is a Vietnamese feed manufacturer established in 2010 and located in the industrial corridor of Bac Ninh Province. The company produces feed for cattle, poultry, and aquatic animals, operating as part of the broader livestock and aquaculture supply chain in northern Vietnam. With a workforce of 200 employees, Nutreco Company Limited serves farmers and commercial farms across the region. In 2023, the company recorded USD 71.59 million in sales, reflecting its scale as a mid sized feed producer.

The company is led by Mr. H. V. Chung, who serves as Director and legal representative. Nutreco Company Limited is fully owned by Dabaco Group, a major Vietnamese conglomerate in animal feed and agriculture, holding one hundred percent of the capital. This ownership structure places Nutreco within a vertically integrated ecosystem where raw materials, distribution networks, and technical support are consolidated under the parent group.

Sales Contraction and Market Exposure

Sales declined sixteen percent in 2023, marking a significant reversal from the thirty five percent growth recorded in 2022. This contraction reflects sector wide challenges, including weak demand from livestock producers, rising input costs, and reduced farming activity. For credit managers, the decline signals possible pressure on cash receipts and the importance of verifying the company’s customer concentration and payment behavior.

Equity Erosion and Reduced Financial Cushion

Owner’s equity fell nearly thirty percent in 2023, dropping from USD 6.09 million to USD 4.29 million. While the company remains solvent, the erosion of net worth suggests higher reliance on liabilities to fund operations. In feed manufacturing, where commodity prices fluctuate and margins are narrow, reduced equity increases vulnerability to unexpected cost changes or shifts in inventory valuation.

Working Capital Compression and Liquidity Risk

Working capital decreased almost fifty percent in 2023, falling to USD 2.9 million. This is a critical development because animal feed producers typically hold sizable inventories and require sufficient liquidity to manage procurement cycles. A shrinking working capital base can tighten day to day operating flexibility, especially during periods of delayed customer payments or rising raw material prices.

Profit Decline and Margin Sensitivity

Profit decreased forty five percent in 2023 after an unusually strong performance in 2022. This decline demonstrates the sensitivity of Nutreco’s margins to commodity costs and production efficiency. Feed manufacturing profitability can shift quickly due to changes in grain prices, energy costs, and demand. Credit evaluators should consider whether the 2022 performance was exceptional and whether current trends represent a normalized margin level.

Parent Company Dependence and Strategic Direction

With one hundred percent ownership by Dabaco Group, Nutreco Company Limited benefits from strong brand affiliation, established sourcing channels, and integrated operations. However, the company’s financial trajectory is closely tied to the parent group’s broader strategic decisions. Credit analysts should consider the extent of financial support available from Dabaco, especially during periods of market stress or liquidity strain at the subsidiary level.

Nutreco Company Limited remains an important feed producer within northern Vietnam’s agricultural ecosystem. Its sales scale, integration with Dabaco Group, and longstanding market presence support operational stability. Future performance will depend on the company’s ability to preserve working capital, stabilize margins, and navigate demand fluctuations in the livestock and aquaculture sectors.

VNBIS Support and Business Services

Vanguard Business Information LLC (VNBIS) provides a full suite of business intelligence solutions to support investors, lenders, and suppliers evaluating Nutreco Company Limited.

VNBIS services include:

• Company Credit Reports evaluating solvency, liquidity, and financial health
• Risk Management Solutions analyzing exposure to commodity price cycles, margin volatility, and cash flow pressure
• Business Verification and Due Diligence Reports confirming ownership, compliance, and governance practices

For the most updated financials, credit limit recommendations, and complete risk assessment, clients are encouraged to access the VNBIS Company Comprehensive Report at www.vnbis.com.