Vitarich earnings down 44% in H1

Vitarich Corp., one of the country’s pioneers in poultry and feeds manufacturing, reported a 44 percent drop in net income in the first semester to P52 million amid higher prices of raw materials.

Revenues, however, grew 28 percent to P3.97 billion on increased volume of all product lines.

The aggregate revenue comprised sales of feeds, day old chicks, chicken, animal health products and dory fish.

Cost of goods increased by 32 percent amid higher raw material prices, particularly corn, wheat and soya.

The company earmarked P130 million for its capital expenditures this year, up more than 60 percent.

For its feeds business, Vitarich said it would continue to deliver superior products through continuing improvements in its formulations and production processes as it aims to reposition its animal and aqua feed lines.

For food and farms, the company will expand its poultry business by increasing its breeder capacity, as well as its food market base by developing chicken value-added products and expanding its distribution channels through hotel and restaurant institutions accounts, and tapping selected supermarkets for its fresh dressed chicken.

Two-thirds of the company’s revenues come from the poultry business while the remaining 33 percent comes from commercial feeds including animal and aqua feeds.