AgriNurture Inc. (ANI), the listed agriculture company of businessman Antonio Tiu, reported a 404 surge in net attributable income to P357 million in the first half of 2020 from the P70.7 million earned in the same period last year.
In a statement, the firm said that, in the second quarter alone, the consumer staple company’s net income grew to P325.3 million from P25.7 million last year.
ANI is one of the country's top produce exporters to the world. It supplies home-grown fruits like mango, banana, pineapple and coconut products to global institutional buyers and supermarket chains.
It is currently spearheading the production and marketing of BigMa (bigas-mais) blend to minimize the country’s over-dependence on imported rice.
While overall sales declined due to the negative impact of COVID-19 on the global supply chain, ANI's recurring income continues to post hefty growth due to robust domestic sales across supermarket chains in the Philippines and in the US mainland.
Meanwhile, other income increased by P281.25 million as a result of an increase in brand valuation for its subsidiary "The Big Chill, Inc." which recently launched its plant based ice cream line and is currently working on a potential listing in a major foreign exchange.
It will also start selling new plant based meat substitute products globally under the brand name "Fit Bites."
A 14 percent reduction in company’s liabilities in addition to BSP rate cuts led to significant interest savings. Unrealized foreign exchange gains and rental income during the period also boosted other income.
The company's sales amounted to P1.8 billion during the first half of the year, from P2.4 billion a year ago or a decrease of 25 percent. Second quarter sales reached P965.6 million, lower than the P1.2 billion posted a year ago due to quarantine and logistics constraints in export markets.
For the first six months of 2020, Philippine operations contributed 56 percent while sales from foreign operations accounted for 44 percent of consolidated sales.
However, overall export sales started to increase after the Chinese government lifted most of the quarantine restrictions in June. Also, sales for coconut water and sparkling juices continue to increase due to the higher demand in the United States during the period.
Local distribution, on the other hand, posted an increase of 199 percent to P185.87 million for the six months from just P62.15 million a year ago. Sales of rice, fresh fruits, and vegetables increased significantly especially during the start of the enhanced community quarantine late March.
Tiu said ANI is continuously improving the mix of products to be sold online and will open more stores in the remaining months of 2020 despite the current pandemic to create more jobs. The limited number of stores allowed to open are currently reconfigured to serve online orders and takeaways. "ANI is fast adapting to the new normal by pioneering the digitalization of Philippines’ Agri Agra sector. We are continuously innovating to make sure that our customers will be able to access our products especially now that we're facing a global health pandemic and the need to consume healthy products is more important," Tiu said.