Vitarich posts P173 million loss as poultry prices fall in Q1

MANILA, Philippines — Vitarich Corp., one of the country’s pioneers in poultry and feeds manufacturing, suffered a P173 million net loss in the first quarter amid depressed poultry prices.

This was a reversal of the P52 million profit booked in the same period last year, the  company said in a regulatory filing.

This as consolidated sales of goods declined by five percent to P1.86 billion due to unfavorable chicken prices.

The local poultry industry has been weak since late last year amid an oversupply which pulled prices down.

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

About 67 percent of the company’s revenue comes from its poultry business, while the remaining 33 percent comes from commercial feeds including animal and aqua feeds.

Cost of goods, consisting of raw material and packaging costs, manufacturing costs, and direct labor costs, increased by seven percent due to higher raw material prices, particularly corn, wheat and soya.

For the first quarter, consolidated operating expenses fell two percent to P142 million, but other operating income increased by three 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 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 expanding its distribution channels by penetrating hotel and restaurant institutions accounts, and tapping selected supermarkets for its fresh dressed chicken.