Vitarich reports record net income of ₱259.1 million in nine months 2024

 

Vitarich reports record net income of ₱259.1 million in nine months 2024

November 8, 2024 – Vitarich Corporation (PSE: VITA) a leading poultry integrator and manufacturer of animal feeds and food products in the Philippines, reported revenues of ₱9.218 billion, net income of ₱259.1 million, and earnings per share of ₱0.085 for the first nine months of 2024.

“We delivered our strongest nine-month results, demonstrating how our strategy execution is improving the profitability and financial position of the company,” said Rocco Sarmiento, VITA CEO. “We continued to invest for the long-term in our brand building capabilities, facilities, and digital initiatives. 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 were ₱9.218 billion, down 4.3% compared to the first nine months of 2023, as Feeds volume continuously faced market adjustments, partially offset by favorable volume growth and recovery in chicken prices in the Foods segment.

Gross profit reached ₱1.072 billion, growing 52.7% year-on-year, with margin expansion of 434 basis points to 11.6%. This positive development was supported by cost reductions in raw materials by approximately 9% as well as ongoing farm efficiencies.

Operating profit more than tripled to ₱365.1 million, as operating costs were maintained at 7.8% of revenues, and other operating income was recognized. Total administrative, selling, and distribution expenses increased 19.7% mainly due to incremental costs for the expansion of distribution channels and e-commerce, including transportation and handling, labor, and other professional fees.

Net income surged 6.5 times to ₱259.1 million or earnings of ₱0.085 a share.

Segment highlights

  • Foods comprised 59.0% of revenues from 54.8% in 9M 2023. Segment revenues of ₱5.440 billion rose 3.1% year-on-year with overall volume growth of 5.6%, led by solid demand in the Visayas. Average selling prices remained lower year-on-year by 0.6% but improved 6.1% from a three-year low in the first quarter, when there was a surplus of chicken in the market.
  • Feeds accounted for 36.2% of revenues from 41.5% in 9M 2023. The segment contributed ₱3.332 billion in revenues, down 16.6% year-on-year. Volume growth was negatively impacted particularly in Luzon due to a combination of the continued spread of African Swine Fever and low farm gate prices of chicken in the first quarter.
  • Farms represented 4.8% of revenues from 3.7% in 9M 2023. Segment revenues of ₱446.5 million climbed 25.8% largely on fair value adjustment on biological assets amounting to ₱140.2 million, which is based on the estimated selling prices at the end of the reporting period.

In the third quarter, VITA worked to strengthen its market presence and brand value. Specifically, the company added more than 15 stores to carry its Cook’s products, completed trade fairs in Davao, received Golden Arrow for good corporate governance, and launched Cook’s website www.cookschicken.com.

About Vitarich Corporation

Vitarich Corporation (PSE: VITA) is a leading poultry integrator and manufacturer of animal feeds and food products in the Philippines. Certified to international standards for sanitation, food safety, and quality, VITA operates in three primary industry segments: feeds, foods, and farms—forging livelihood and nourishing lives. For more information, visit vitarich.com or contact ir@vitarich.com.

Forward-looking statements

This disclosure contains forward-looking statements that are, by their nature, subject to risks and uncertainties. Such forward-looking statements are made based on management’s current expectations or beliefs as well as assumptions made by, and information currently available to, management. Because actual results may differ from those contemplated in the forward-looking statements, undue reliance must not be placed upon them.