VITARICH Corp. recorded a P180.5-million net income in the nine months to September, carried by higher revenues.
The listed agricultural firm said in a stock exchange disclosure on Monday that its net income for the period is an improvement compared with its P3.6-million profit in the same period in 2020.
Vitarich’s revenues rose 28% to P7.31 billion as volumes increased across business segments.
“Volumes picked up strongly across all business segments but were partially offset by the decline in average selling prices of chicken and day-old-chicks due to the reimposed series of stricter quarantine measures from August through October,” Vitarich said.
“Cost of goods increased 25% to P6.6 billion mostly on higher prices of raw materials such as wheat, soybean, and corn which rose by as much as 19% in the third quarter primarily from global logistics challenges. As a result, margins came in softer than expected,” it added.
Vitarich said the revenue of its feeds segment for the period, which shared 47% of overall revenues, increased 9% to P3.4 billion.
“The business enjoyed higher volumes of 8% for commercial and tie-up customers combined. The decrease in gross margin mainly reflects the ongoing market conditions under coronavirus disease 2019 (COVID-19) which are driving up the cost of raw materials,” Vitarich said.
The company’s food segment, which contributed 42% of total revenues, posted a 40% climb in its revenue to P3.1 billion.
“The business benefited from a 25% increase in volume and 12% increase in selling prices,” Vitarich said.
Meanwhile, the farms segment, which shared 11% of the revenues, increased 134% to P799 million.
Ricardo Manuel M. Sarmiento, Vitarich president and chief executive officer, said the company expects further expansion of its customer base through its expanded product offerings and distribution.
“In the face of evolving market dynamics caused by COVID-19 challenges, we continue to be responsive and agile to meet the needs of our stakeholders. We also expect benefits from our newly upgraded facilities to support our growing hotel, restaurant, and institutional (HRI) customers,” Mr. Sarmiento said.
On Monday, shares of Vitarich at the stock exchange rose 2.63% or two centavos to 78 centavos apiece. — Revin Mikhael D. Ochave