LISTED poultry integrator Vitarich Corp. saw its first-quarter (Q1) attributable net income jump to P241.6 million from P620,959 a year earlier, supported by higher chicken prices and a new revenue stream.
“This marked a record quarter that exceeded the company’s internal forecasts,” Vitarich said in a stock exchange disclosure on Wednesday.
Revenues rose by 8.8% to P3.2 billion from P2.94 billion, while gross profit more than doubled to P607.53 million from P245.99 million in the same period last year.
The company said revenue growth was partly offset by lower chicken volumes and “reduced pricing for feeds due to the limited supply of day-old chicks in the market.”
Food products contributed 62.8% of total revenues, followed by feeds at 28.7% and farms at 8.5%.
Government data showed that full-dressed chicken prices in Metro Manila averaged P206.97 per kilogram in the last week of March, higher than P180.70 per kilogram from March 25 to 27.
In addition to nationwide price increases, Vitarich attributed its improved performance to the “addition of a new revenue stream from day-old pullets.”
Its food segment includes chicken and dory fish products sold to hotels, restaurants, institutional clients, supermarkets, and wet markets.
In March, Vitarich signed an exclusive distribution agreement with French breeding company Novogen for NOVOgen White hens.
The company also said it is strengthening its food segment under the Cook’s brand “by scaling up its fresh and ready-to-cook chicken products and investing in marketing.”
Operating profit surged to P349.8 million from P24.1 million last year.
Operating expenses rose to 8.1% of revenues, driven by higher freight and handling costs, merchandiser salaries, and training and marketing expenses.
“As we move through the year, short-term disruptions such as the shortage of day-old chicks may continue but we remain focused on pursuing a range of opportunities that we believe will further strengthen our business and fuel sustained growth in the years ahead,” Vitarich Chief Executive Officer Ricardo Manuel M. Sarmiento said. — Kyle Aristophere T. Atienza