MANILA, Philippines — Poultry integrator and feeds manufacturer Vitarich Corp. reported a record net income in the first quarter, surging exponentially on an annual basis to over P240 million, driven by higher chicken sales and new revenue streams.
Vitarich said its net income in the first three months hit P241.6 million, 389 times higher compared to the P620,959 profit recorded in the same period last year.
The firm’s revenues expanded by 8.8 percent year-on-year to nearly P3.2 billion from last year’s P2.94 billion. Vitarich attributed the increase to higher nationwide pricing of chicken products and the addition of a new revenue stream from day-old pullets.
Nonetheless, the company noted that its top line was partially mitigated by lower volumes sold and reduced pricing for its feed products because of limited supply of day-old chicks in the market.
“(Vitarich) delivered record net income and margin performance, outperforming our expectations,” said CEO Rocco Sarmiento.
“This performance boosts our outlook and reinforces our confidence in navigating an evolving macroeconomic environment,” he added.
Sarmiento noted that the firm may continue to face persisting industry challenges such as shortage of day-old chicks. Nonetheless, the firm has already scheduled additional breeder orders for the second and third quarters to manage the supply disruptions.
“We also expect to increase capital expenditure over the course of the year related to our investments in poultry houses, in line with our strategic priorities,” he said.
Vitarich said revenues from its food segment expanded by more than a quarter year-on-year to P2.22 billion from P1.75 billion caused by higher chicken prices in the market. The foods segment accounted for almost 63 percent of the firm’s revenues, up from last year’s 59.6-percent share.
Revenues from the feeds segment fell by almost five percent to P1.02 billion from P1.07 billion due to lower feed prices.
The company added that farm revenues more than doubled to P301.7 million from P88.5 million driven by the introduction of day-old pullets.
