Vitarich Corporation reported a net income of P276.9 million in first half 2021 net income, an increase of 24 times over the same period last year and the highest level in company history.
In a disclosure to the Philippine Stock Exchange, the firm said its “historic performance was fueled by growing customer demand and increased pricing along with lower costs of raw materials and more efficient production from higher plant capacity utilization.”
Revenues reached P4.4 billion, up 15 percent from the same period last year with all product categories delivering solid momentum, particularly the Foods segment.
Operating income climbed to P382.0 million, up by almost nine-fold from a year ago. Vitarich said the progress reflects the company’s multi-year plan to scale up and improve efficiency, with operating expenses now at 6 percent of total revenues from 10 percent for the same period in 2016.
“I would like to thank our team for their continued commitment and resilience to meet customer needs and focus on execution,” said Vitarich Chief Executive Officer Rocco Sarmiento.
He added that, “In the five years since our turnaround and corporate rehabilitation exit in 2016, VITA has consistently restored profitability, while investing in manufacturing facilities, and research and technology development.”
“Today, our record-high performance, long-term demand expectation, and strengthened balance sheet with reduced debt give us increased confidence in our mid-term outlook of progressive margin expansion,” Sarmietnto said.
He noted that, “We continue to evolve our strategy towards a fully integrated business model focusing on higher value activities. Likewise, we expect to spend P330 million for capital expenditures this year.”
Vitarich’s Feeds segment, which accounted for 48 percent of total revenues, saw a 3 percent growth to P2.1 billion as a result of new commercial client wins, and stronger order intake from distributors driven by new entrants in large poultry farms and end-customers switching to VITA products.
The Foods segment, which accounted for 44 percent of total revenues, recorded a 26 percent increase to P1.9 billion due to a combination of broad-based volume growth following the easing of lockdown restrictions, and higher prices.
The Farms segment, which accounted for the remaining 8 percent of revenues, grew 43 percent to P340.6 million on better volume and prices from sale of day-old chicks.