Vitarich profit up by 44% to P129 million

MANILA, Philippines — Listed poultry and feed manufacturer Vitarich Corp. reported a net income of P129 million last year, up 44 percent on record revenues.

In a disclosure to the Philippine Stock Exchange yesterday, Vitarich said its revenues jumped 23 percent to an all-time high of P12 billion in 2022 despite rising input costs.

This marks the first time annual revenues exceeded P10 billion in the company’s 60-year history.

Vitarich said all business segments were profitable with strong momentum in the foods segment.

Comprising 52 percent of the total revenues, the foods segment recorded all-time high revenues of P6.2 billion, up 48 percent year-on-year.

This was driven by the robust recovery in food services and restaurants which lifted demand while the company’s value-added products unveiled in November provided some additional support.

Revenues from the feeds segment also grew 11 percent to P5.2 billion driven by pricing which improved 18 percent versus input costs of 23 percent. The feeds segment comprised 44 percent of revenues.

Meanwhile, the farms business delivered P529 million in revenues, down 32 percent due to the shortage of day-old chicks. This segment accounted for four percent of revenues.

Vitarich said net income reached P129 million, up 44 percent from P89 million in 2021.

“2022 brought many challenges to families and businesses particularly as inflation intensified and food prices rose by double digits. Despite this difficult environment, our team worked tirelessly and delivered solid revenue growth and improved net income,” Vitarich president and CEO Rocco Sarmiento said.

Vitarich saw cost of goods accelerate by 23 percent to P10.9 billion due to higher sales volumes and input costs.

Its key raw materials including wheat, soybean, and corn—which comprised about 70 percent of feed costs—saw an average 25 percent increase in prices.