Vitarich: Ready for 2021
Last month, Vitarich released its Audited Financial Statement for 2020, showing a Net Income of ₱9,288,476.00. Even if net income and other numbers went down, Vitarich’s Net Cash generated from operations actually increased marginally from ₱514,614,065 in 2019 to ₱574,372,033 in 2020. In an economic climate where businesses are struggling to stay afloat, this is a welcome sight. Vitarich has been grateful to its business partners, suppliers, and employees in meeting the challenges of Covid -19.
For the first quarter, Vitarich posted a record-breaking Net income of ₱186.5 million, which is 200% of same period last year of ₱93.1 million, the highest single quarter performance the company has achieved since it exited corporate rehabilitation in 2016.
Gross profit for the first quarter amounted to ₱374 million, higher by ₱85 million or 30% up from ₱289 million of same quarter last year. The improvement was brought by better selling price of chicken in the market, coupled with lower raw materials and production costs. Other operating income of ₱7.6 million for the first quarter of 2021 increased by 45% versus same period last year.
Feeds sales fulfilled the requirements of customers left by competitors who had to scale down. Vitarich has provided valuable support necessary to its business partners in these difficult times to earn their patronage.
Part of the pandemic measures in 2020 was to cull and lower day-old chicken production last year to cut on cost considering the uncertain market. This had negative effect on the supply of Day-Old-Chickens, that in turn adversely affected consolidated sale of goods of ₱2.0 billion, which is lower by 14% from ₱2.3 billion of same quarter last year. Fortunately, Vitarich increased its efficiencies by lowering expenses and increasing the customer value of its products.
Operating expenses was at ₱135.1 million, 6% lower versus the same period of last year of ₱143.5 million. Other charges of ₱7.9 million for the first quarter of 2021 decreased by 55% against its balance for the same period last year because of the decrease in the interest expense related to lower loan availment.
It appears that Vitarich is back on track, as the first two months of 2020 prior to the Covid 19 lockdown last year were already exceptional. No one can ever be prepared for something like the Covid-19 pandemic but Vitarich came together and is in the right direction.
Vitarich will continue to focus on quality and efficiency as it rebuilds breeder capacity and Day-Old-Chicken production. Quality maximizes value as preferred choice for hotels, restaurants and institutional (HRI) clientele. It will continue to increase its food market base through new sales channels including direct community selling, penetration of additional HRI accounts, and tapping selected supermarkets. Efficiency means being more conscious on priorities, and where to put our resources for their best use with maximum possible returns.
The foregoing is based on the Lifetime Profitable Partnership™, which Vitarich will continue in the years to come. The LPP is founded on Vitarich’s culture of win-win engagements among stakeholders. Thankfully, Vitarich is currently sized right to be agile and dynamic enough to closely deal with business partners and suppliers, tap new markets, and maximize customer value for its products. Strategies to cope with Covid-19, including the right cost controls, increasing efficiencies, and health protocols to ensure the safety of its employees, have worked so far. The roadmap and strategies continuously adjust to the evolving challenges it faces.
Hopefully, the government continues its success in fighting off the Avian Flu, creating a road map for corn and repopulating the hog industry. It is hoped that the public would continue to patronize local products. Vitarich is happy and thankful that government is putting in more initiatives in carefully calibrating and monitoring importation. In any case, Vitarich produced chickens will always taste better for sure.
Vitarich is growing despite the pandemic. It is optimistic that this momentum will continue as business partners are regaining ground and are getting back on their feet. To date, COVID-19 cases among employees have been minimal. Remote working arrangements have not sacrificed productivity, and in some cases even increased efficiencies. If this continues by year end, Vitarich plans to reward its employees for their loyalty, hard work and diligence. However, the goal really is to be profitable enough to declare dividends to shareholders, silent partners who stayed with Vitarich through thick and thin. Groundwork has been laid with the reduction in par value in 2018, and its continuous and incessant efforts for profitability. After all, Lifetime Profitable Partnership™ means that absolutely everyone grows with Vitarich.