Vitarich to conduct 2nd debt-equity swap

AGRIBUSINESS firm Vitarich Corp. will conduct another debt-to-equity program to wipe out its existing P400million debt.

In a news conference on Tuesday, Vitarich Corp. President and Chief Executive Officer Ricardo Manuel Sarmiento said they had already filed the plan before the Securities and Exchange Commission (SEC), with approval expected within the next six months.

“This is the second round of debt-to-equity which will abolish the remaining P400 million debt of Vitarich. This means that the company will now be debt-free and we can concentrate now on moving forward with our expansion,” Sarmiento said.

Last year, Vitarich conducted its first debt-to-equity swap to convert its P2.3 billion debt into stocks.

Along with a second debt swap, the company will also conduct a quasi-reorganization, which has been approved by its shareholders during the company’s recent annual stockholders’ meeting.

“After the debt-to-equity (program) and quasi-reorganization, the company will now be debt-free, zero deficit, and able to issue dividends to shareholders,” Sarmiento said.

In October this year, Vitarich inaugurated its new P250-million feed mill in Davao City, which is capable of producing 100,000 units of 50-kilo bags of feeds per month.

It also doubled the capacity of its automated existing feed mill in Iloilo Province from 93,600 bags to 187,200 bags currently.

In Davao, Vitarich said it is now producing 942,000 eggs each month.

“We have a new program that’s a root-to-market program... We call it Project Revitalize. What we’re doing here is partnering with major distributors in different areas to have products available and by the end of this year, we should have at least 25 new distributors that will give us access to 80 percent of the local market,” Sarmiento said.

“We are preparing the proper infrastructure—new feed mill that will double capacity. This will lay the groundwork for growth,” he added.

The company has programmed a capital expenditure of P130 million in 2018 primarily for the expansion of warehouses and feed mills support. This is higher than the P80 million allotted for 2017.

Sarmiento said they are targeting at least 30 percent revenue growth next year.

ANGELICA BALLESTEROS