Vitarich turns around, registers P3.6 million profit

MANILA, Philippines — Vitarich Corp., one of the country’s pioneers in poultry and feed manufactur­ing, reported a net income of P3.6 million in the first nine months, a significant turnaround from the P105.6 million loss incurred in the same period a year ago.

The company posted growth even as consolidated sales of goods went down four percent to P5.69 billion due to oversupply of chicken brought about by the pandemic.

The coronavirus outbreak has resulted in lower prices of chicken in the market.

The local poultry industry is still in a supply glut as producers shift to chicken meat due to the African swine fever which hit the country.

Aggregate revenue was composed of the sales of feeds, day old chicks, chicken, animal health products, and dory fish.

About 67 percent of the company’s revenues comes from its poultry business, while the remaining 33 percent comes from commercial feeds including animal and aqua feeds.

Operating expenses decreased by six per­cent to P388.1 million due to cost reduction measures that were implemented.

For its feeds business, Vitarich will continue to deliver superior products through continuing improvements in its formulations and production processes as it aims to reposition its animal feed lines.

Feed sales also stepped up by fulfilling requirements of customers whose previ­ous supplier had to scale down or close.

For food and farms, the company is expanding its poultry business by increas­ing its breeder capacity, as well as its food market base through new sales channels including direct community selling, pen­etration of additional hotel and restaurant institutions accounts, and tapping selected supermarkets for its fresh dressed chicken.

Vitarich is also exploring e-commerce and online channels.