Sarmiento-led poultry and feeds producer Vitarich Corp. expects a ₱196-million boost in net income after it finally secured a ₱400-million settlement for its claims for damages incurred during Typhoon Ondoy in 2009.

In a disclosure to the Philippine Stock Exchange (PSE), Vitarich said it has entered into a compromise agreement with AXA Philippines Life and General Insurance Corp. to settle its insurance claim under Civil Case No. 662-M-2014, entitled “Vitarich Corp. vs. Charter Ping An Insurance Corp. (now AXA Philippines).”

On May 31, 2023, the Regional Trial Court (RTC) of Malolos City, Branch 15, rendered its decision, finding the insurer liable to pay Vitarich ₱247.62 million with interest, in addition to the amount previously awarded through a summary judgment.

The insurer filed an appeal before the Court of Appeals (CA) and, without admitting any fault and to avoid a prolonged legal process, agreed with Vitarich to a settlement valued at ₱400 million.

The settlement, containing customary provisions mutually beneficial to both parties, was accepted by Vitarich President and Chief Executive Officer (CEO) Ricardo Manuel M. Sarmiento, who has been authorized by the board of directors.

The company expects the settlement, which takes effect on Dec. 19, 2025, to have a material impact on liquidity and capital resources.

“The settlement will provide the company an estimated additional ₱196 million in net income and ₱267 million in net cash flow.”

For the first nine months of 2025, Vitarich reported revenues of ₱9.17 billion, net income of ₱120.6 million, and earnings per share of ₱0.04.

Revenues slightly declined by 0.5 percent year-on-year, primarily due to the continued drop in chicken prices, which also affected the valuation of biological assets, as well as the limited availability of day-old chicks (DOC) during the first half of the year.

This was partially offset by the company’s entry into the day-old pullet segment.

Gross profit rose to ₱1.12 billion, a modest 4.1-percent increase from the prior year, driven by favorable chicken prices during the early part of the year and improved production efficiencies in the feeds segment.

Operating income, however, dropped by 32.4 percent year-on-year to ₱240.2 million, mainly due to higher operating expenses (opex) arising from increased marketing activities, freight and handling costs, corporate events, and employee training programs.

Net income fell by 53.5 percent to ₱120.6 million, reflecting the impact of elevated opex despite stronger gross profitability.