Vitarich Corporation, a leading poultry integrator and manufacturer of animal feeds and food products, reported a 6.5-fold increase in net income in the first nine months of 2024 to P259.1 million from P40.05 million in the same period last year.

"We delivered our strongest nine-month results, demonstrating how our strategy execution is improving the profitability and financial position of the company," said Vitarich President and CEO Ricardo Manuel M. Sarmiento in a disclosure to the Philippine Stock Exchange (PSE).  

"We continued to invest for the long-term in our brand building capabilities, facilities, and digital initiatives," Sarmiento added. "We focused on modern trade and Hotel, Restaurant, and Institutional customers to drive sustainable top- and bottom-line growth. Our Cook’s brand is now available in 358 stores in Luzon."

Revenues reached P9.22 billion, down 4.3 percent year-on-year due to market adjustments in the Feeds segment, partially offset by strong volume growth and recovering chicken prices in the Foods segment. 

Gross profit rose 52.7 percent to P1.07 billion, with a margin expansion of 434 basis points to 11.6 percent. This improvement was driven by a nine percent reduction in raw material costs and ongoing farm efficiencies. 

Operating profit more than tripled to P365.1 million, with operating costs maintained at 7.8 percent of revenues.  

The Foods segment represented 59 percent of total revenues, up from 54.8 percent in the first nine months of 2023. Segment revenues reached P5.44 billion, a 3.1 percent year-on-year increase, driven by a 5.6 percent overall volume growth led by strong demand in the Visayas. 

Average selling prices were slightly lower year-on-year but showed a 6.1 percent improvement from the first quarter.

The Feeds segment accounted for 36.2 percent of revenues, down from 41.5 percent in the same period last year. The segment generated P3.33 billion in revenue, a 16.6 percent decline year-on-year. 

Volume growth was negatively impacted in Luzon due to the continued spread of African Swine Fever and low chicken prices in the first quarter.

The Farms segment contributed 4.8 percent of revenues, compared to 3.7 percent last year. Segment revenues increased 25.8 percent to P446.5 million, primarily due to a P140.2 million fair value adjustment on biological assets.