DaBomb 's Tainan plant turns profitable, Zhangzhou plant stops losses! Fourth-quarter profits expected to turn positive.

DaBomb Protein Biotech Corp. announced today that its third-quarter revenue was NT$87.05 million, roughly the same as the same period last year. This was mainly due to the Tainan plant turning a profit in the third quarter, offsetting the losses in the first half of the year. The plant has now achieved profitability in the first three quarters. The Zhangzhou plant in Fujian was affected by African swine fever, which was the main reason for the operating loss. However, after recognizing one-off expenses in the third quarter, there will be no further losses in the future, and the overall profit in the fourth quarter is expected to turn positive.

DaBomb Protein Biotech Corp. reported third-quarter revenue of NT$87.05 million, roughly the same as the same period last year; gross profit of NT$9.79 million, up 92.55% year-over-year; and operating loss of NT$12.17 million, down 11.93% year-over-year. Cumulative revenue for the first three quarters was NT$283 million, down 10.92% year-over-year; gross profit was NT$25.43 million, up 161.39% year-over-year; and operating loss was NT$34.93 million, a decrease in loss of 35.23%.

Faced with the risk of rising raw material costs, DaBomb Protein Biotech Corp. has been actively transforming in recent years, developing high value-added products, creating a blue ocean market in the animal nutrition fermentation industry, and increasing the proportion of sales of high-priced, high-margin products. Although sales volume is not as high as the same period last year, the performance of its core business has improved significantly.

DaBomb Protein Biotech Corp. primarily targets export markets. Following the pandemic, it has adopted a global short-chain strategy, with Taiwan becoming a key production base. Currently, DaBomb Protein Biotech Corp. production focus is on its Tainan Science Park plant. In terms of sales volume and revenue, the plant accounts for over 90%. The benefits of this transformation are gradually taking effect, with the plant's revenue in the first three quarters exceeding that of the same period last year, and its gross profit increasing by 197%. The plant has already achieved profitability in the first three quarters.

The Zhangzhou plant in Fujian has been affected by African swine fever in recent years, which has become the main reason for DaBomb Protein Biotech Corp. 's operating losses. However, under the consideration of transformation strategy, the Zhangzhou plant completed its phased tasks and ceased operation in the third quarter of this year, resulting in asset impairment recognized in the third quarter. As a result, the after-tax loss in the third quarter expanded to RMB 29.56 million. However, after recognizing the one-off expenses for the closure of the Zhangzhou plant, there will be no further losses in the future.

DaBomb Protein Biotech Corp. continues to adjust its direction, using postbiotic immune-enhancing technology to develop high-value-added new products and expanding its CDMO business to assist customers in developing differentiated products. The new product, the DBT-100 series, is an antibiotic alternative product consisting of immune-enhancing postbiotics and antibacterial probiotics. It has already completed import registration in the Philippines and is in the process of import registration in Vietnam, Malaysia, the Philippines, South Korea, and other countries.

DaBomb CDMO has received orders from a large US global marketing international animal health and nutrition strategy company, a US-based feed additive developer, and a domestic enzyme R&D and design company. It will also collaborate with a Vietnamese aquatic feed customer and a Singaporean startup with novel antibacterial active peptide technology. Once the first phase of the factory's expansion to a 20KL fermentation production line is completed in the second quarter of next year, it will be able to meet customer demand.

The above content is excerpted from a news article published by Yao Huiru of the Financial News on November 3, 2023.
https://finance.technews.tw/2023/11/03/dbt-100/