Banner year: Vitarich hits record-high P217M profit

PHOTO FROM VITARICH CORP/WEBSITE

MANILA, Philippines — Vitarich Corp. delivered record profit amounting to P216.6 million in 2024, surging by 16 times as its food business revved up earnings.

Vitarich CEO Ricardo Manuel Sarmiento said on Friday, “2024 was a banner year for VITA (the trading symbol of Vitarich), marked by our highest annual profit and strong momentum in innovation.”

Revenues reached P12.54 billion which, according to the listed firm, had slightly exceeded the historical high achieved in 2023.

The food segment fueled profitability, as revenues reached an all-time high level of P7.44 billion. It accounted for 59.3 percent of revenues. This segment benefited from the ongoing business transformation toward sales to modern trade and hotels, restaurants and institutional customers.

The company also cited a more favorable market that drove volume growth and supported the recovery in chicken prices.

READ: Vitarich income surged 547% to P259M

Bailiwick

“By geography, growth was driven by Visayas and Luzon. Visayas drove volume growth with a strong double-digit increase. Luzon remained the largest market, gaining from positive pricing and volume trends,” the firm said.

It more than offset lower revenues reported by the feeds business, which decreased by 12 percent to P4.51 billion, comprising 35.9 percent of revenues.

Vitarich said weaker demand for hog feeds — amid the African swine fever outbreak that slashed the local hog population — negated the 25.8-percent increase in total layer feed volumes.

“Broiler feed sales also slowed, tempered by weak farm-gate chicken prices in the first four months of the year, which stemmed from an oversupply in the market,” it added.

READ: Vitarich renews deal with poultry subsidiary in Lucban

Farm segment

Meanwhile, revenues from the farms segment expanded by 40 percent to P594.2 million, mainly due to a higher net gain on the fair value of biological assets, such as day-old chicks and improved selling prices. It represented 4.7 percent of revenues.

“We continue to enhance our competitiveness and profitability through a balanced portfolio, improved cost efficiency and more optimized supply chain. These efforts position us well for sustained growth moving forward,” Sarmiento said.

Meanwhile, gross profit surged by 66.2 percent to P1.504 billion as lower raw material prices reduced the cost of goods.

Operating profit rose 37 times to P397.8 million as administrative and selling and distribution expenses increased by 23.7 percent because of higher costs from adding distribution channels and e-commerce.

“On a full-year basis, the company expects revenues to post double-digit growth and income to improve significantly, developing throughout the year and over the medium term as the company continues to deliver on its growth plans,” the poultry integrator and manufacturer of animal feeds and food products said.

Vitarich reiterated its commitment to bolstering its foods segment through Cook’s brand by scaling up its fresh and ready-to-cook chicken products and investing in marketing.

The firm said the strategic partnership with French firm Novogen “also positions the farms segment for further growth,” which may benefit its other segments.