The publicly-listed feeds company said it would give priority on cash flow generation as well as focus on increasing margins compared with its operations during the previous year, which saw its poultry business posting a dismal performance alongside the rest of the major players in the poultry industry.
Vitarich vice president for corporate affairs Ariel Arias said among the new directions for the company this year is an integrated approach in the sale of the company’s non-core businesses and convert the proceeds to strengthen working capital.
And, as part of lowering overheads. Vitarich will maximize excess capacities by going into toll or lease agreements for its feed mills as well as its rendering and ice plants, Arias said.
The company will likewise further improve productivity through functions integration as well as review and amend its existing agreements with business partners and the transfer or lease of its non-core businesses.
Arias said their cost-cutting measures include downsizing manpower, if necessary.
"These new initiatives will ensure the viability and financial soundness of Vitarich without losing our competitiveness," Arias said.
The company has recently announced that it was shifting its focus back to its feeds business, where Vitarich is a household name in the country, and reduce its faltering chicken business after the poultry sector was badly hit by oversupply and falling prices during the past couple of years.