Vitarich first-half net income down 47%

Vitarich Corporation reported a double-digit decline in its net income during the first six months of the year, as the company faced several headwinds.

In a regulatory filing, Vitarich said its net income fell 47% to P147.7 million from P276.9 million the same period last year, while earnings per share fell by 47% to 4.8 centavos from 9.1 centavos.

Cost of goods increased by 25% to P4.9 billion due to higher sales volume and prices of raw materials including wheat, soybean, and corn which recorded an average annual increase of 32%.

Operating expenses also climbed 25% due to the surge in fuel, energy, and labor costs, bringing the gross profit to P591.9 million, translating to a gross margin of 11%.

“We expect input costs to remain elevated as we move through the balance of the year,” chief finance officer Melise Arnaldo said in the filing.

“We are taking necessary actions to manage through the current market conditions while remaining focused on our growth plans and long-term opportunities,” Arnaldo added.

Revenues for the period increased by 21% to P5.526 billion from P4.584 billion, driven mainly by the company’s food business.

“Through volume gains, responsible price increases, and operational efficiencies, we limited the impact of higher input costs on our profitability,” President and Chief Executive Officer Rocco Sarmiento said.

“At the same time, we successfully executed on our strategic plan of growing our core. We added several key accounts to our hotels, restaurants, institutional customer list—including some leading fast food chains—and launched our branded chicken products, Cook’s, in various parts of the country,” he added.

Vitarich’s business portfolio includes feed, farm, and food. Its feed products are sold to various distributors and end users; its farm products include day-old chicks and pullets; and food products include chicken and dory fish.

It has operating offices in Luzon, Iloilo, and Davao, with satellite offices in southern Philippines.

Shares in Vitarich closed Thursday unchanged at P0.60 apiece. — Jon Viktor D. Cabuenas/BM, GMA News