VITARICH Corp. said it posted a second-quarter net profit of P338,000 in the second quarter, down sharply from P49.80 million reported a year earlier, as gross sales slipped while operating expenses climbed.
In its financial report to the stock exchange, the company said gross sales amounted to P176.21 million, down 6.7% from a year earlier. This failed to match the double-digit rise in operating expenses at 38.4% to P181.71 million.
In the first half, the company recorded a net profit of P52.08 million, down 44.2% from a year earlier.
Gross sales dropped 1.6% to P377.85 million, the company said.
Vitarich managed to trim its operating expenses during the half, thus finishing the first half with an operating profit of P109.11 million, “driven by the strong performance of all operations.” The figure was just slightly lower than the year-earlier P109.41 million.
“This was achieved despite higher feed costs due to the increase in prices of key raw materials,” it said.
The company said its feed business will “continue to deliver superior products through continuing improvements in its formulations and production processes.”
Vitarich said it also plans to venture into piglet production to support its hog feeds business. It aims to reposition its animal and aqua feed lines.
“Vitarich will expand the poultry business by increasing its breeder capacity. [It] will also increase its food market base by developing chicken value-added products and expanding its distribution channels by way of penetrating hotel, restaurant, and institution accounts, and tapping selected supermarket for its fresh dressed chicken,” it added.
On Friday, Vitarich shares declined by 1.65% to close at P2.39. — Victor V. Saulon
