Operating costs saddle Agrinurture, profits down 20%

Encumbered with higher cost of sales and operating expenses, listed fruit and vegetable grower Agrinurture Inc. (ANI) on Wednesday reported profits fell by 20 percent in the second quarter of the year. 

 

The company registered profits of P50.98 million in April to June, down from P63.76 million a year earlier. Higher volume burned the cost of sales, it added.

 

Net sales totaled P1.01 billion, up from P901.9 million in the same comparable period, but cost of sales rose to P826.51 million from P749.90 million.

 

"The demand for ANI's products may be affected by the fluctuations in prices, as determined by seasonality, weather, product quality and farm productivity," the filing read.

 

Operating expenses reached P137.72 million from P106.11 million.

 

ANI is into commercial distribution of fresh fruits and vegetables to retail establishments as well as hotels, restaurants, wet markets and caterers. The distribution side is handled by subsidiaries, First Class Agriculture (FCA), Fresh and Green (FG), and Lucky Fruit and Vegetables (LF).

 

Subsidiaries M2000 Imex in Bulacan, Hansung Agro in FTI Taguig and Fruitilicious in Cagayan de Oro, produces fruit beverages. 

 

With Chinese business partner Beidahuang Seed Group of China, the company is exploring opportunities to expand its land planted to hybrid rice, bananas and asparagus.

 

The company currently ships bananas, coconut, mangoes, pineapple and papaya to the Middle East, China, and North America and Europe. — VS, GMA News