Vitarich Corp., a listed poultry integrator and manufacturer of animal feeds and food products, said its first-half net income surged to P167.0 million, bolstered by improved operations and strict cost management.
“Our first-half performance reflects our commitment to these priorities and demonstrates that we are on the right path with our long-term strategy,” Vitarich chief executive officer Rocco Sarmiento said in a statement.
“In the second half, we anticipate that the expanded distribution of Cook’s will enhance the brand’s visibility and drive retail demand. Additionally, we plan to introduce innovations that will offer consumers diverse and unique culinary experiences,” he added.
Despite the strong performance in several areas, Vitarich said first-half revenue declined 3.1 percent to P6.13 billion as the feeds segment sales declined P506.1 million due to lower demand for hog and poultry feeds.
However, this was partially offset by a P213.1 million increase in the foods segment, driven by volume gains despite subdued price trends.
Gross profit saw a 55 percent increase to P705.3 million, which translated to a gross margin of 11.5 percent, an improvement of 433 basis points from the previous year.
This growth was largely due to reduced raw material costs—down approximately 10 percent—and enhanced farm efficiencies.
Operating profit nearly tripled to P238.0 million, maintaining operating costs at a manageable 7.7 percent of revenue.
However, total administrative, selling, and distribution expenses rose by 19 percent, driven by increased costs related to transportation and handling, marketing labor, a higher number of employees, and other professional fees.
