Vitarich confident of settling debts by yearend

MANILA, Philippines - Listed Vitarich Corp. is still confident that it can eliminate its remaining debt by the end of the year, despite having missed its initial target of exiting corporate rehabilitation by September, company chief operating officer Ricardo Manuel Sarmiento said Tuesday night.

“We’re hoping to exit before the year ends. We’re very optimistic on this. September was the target, but there has been a little delay but we can catch up,” he told reporters on the sidelines of the launch of its new cream dory fillet product.

Vitarich sold early this year its non-core plant in Marilao Bulacan to 8990 Holdings for P610 million to pare down its remaining debt that stands at P800 million.

“We sold it, but we have terms on the payment. That’s why our loan still stands at P800 million. But at the end of the year (the sale should be completed),” he said.

Vitarich is a pioneer in the local animal feed industry, engaged in the formulation, production, storage, and marketing of various animal and aqua feeds. It is also engaged in the growing and sale of live animals, as well as the processing of various poultry and livestock products.

The company was placed under corporate rehabilitation in 2007 as its business units were still reeling from losses incurred during the Asian financial crisis during the ‘90 when avian flu broke out in 2003.

Last year, the company entered a debt-to-equity conversion strategy through creditor Kormasinc Inc.

The company is grooming its aquaculture business to be a potential contributor to its sales, beginning with the introduction of its Golden Dory fillet to the market.

Sarmiento said the company has plowed 10 percent of its resources to grow its raising areas for dory fish and process it into fillets.

Vitarich on Tuesday officially launched its Cook’s Golden Dory fillet that is now sold in supermarkets, among which are Gaisano and Landmark.

The fillet comes from dory grown in fishponds in Bulacan, Pampanga and Nueva Ecija that were established through joint agreements with growers. Fingerlings are also sourced locally.

Vitarich began growing and selling dory in 2007 to hotels and restaurants in Luzon. Back then, it obtained dory fingerlings from Malaysia.

Vitarich is intent on capturing a huge chunk of dory demand in the country, having few local competitors. The Philippines imports about 600 tons of dory fish products annually from Vietnam, comprising about 90 percent of the local demand.

“Cook’s Golden Dory does not undergo any harmful chemical processes like bleaching and the fish is not subjected to antibiotic treatment. The traceability of the product is also assured,” said Sarmiento.

Sarmiento said the dory business, the company’s first aquaculture food business, is being groomed to become a substantial contributor to the company’s total sales.