VITARICH Corp. reported its net income surged to P99.97 million in the third quarter of 2019, from P3.88 million a year ago, as consumers shifted to chicken amid the African Swine Fever (ASF) scare.
In a regulatory filing, the listed poultry producer said sales jumped 8% to P2.305 billion in the July to September period.
Vitarich’s business appeared to get a boost as Filipinos shifted to chicken from pork amid the outbreak of ASF in the country.
For the nine-month period, Vitarich posted a net loss of P105.59 million from a P55.965 million profit in the same period last year, “brought about by significant decrease in selling prices of chicken in the market during the first half of the year due to massive importation of chicken.”
Importation data provided by the Bureau of Animal Industry (BAI) show that chicken meat and meat products imported in the country already reached 229.188 million kilos in the first nine months of the year. Notably, highest import volume was recorded in January at 30.28 million kilos, followed by imports in August, which reached 28.58 million kilos. In 2018, total imports for chicken was at 288.202 million kilos.
Vitarich said revenues slipped 2% to P5.959 billion in the first nine months of the year from P6.087 billion, year on year, “due to unfavorable chicken prices.”
Broken down, revenues from the food segment, which is engaged in the growing, production and distribution of chicken broilers, was flat at P2.78 billion. The feeds segment, which involves the manufacturing and distribution of animal feeds and animal health products, dipped 3% to P2.79 billion.
Revenues from the farm segment, which involves the production of day-old chicks and pullets, fell 7% to P414 million.
“The Company is seeing a positive turnaround of operations in the remaining period of the year and is committed to continue its intensive marketing, improved formulation technology for its feeds products and tolling operational partnerships,” Vitarich said.
“The Company also expands its poultry business by increasing its breeder capacity and its distribution channel by way of penetrating hotel, restaurant, and institution accounts and tapping selected supermarket for its fresh dressed chicken,” it added.
Shares in Vitarich gained 0.03 point or 2.27% to close at P1.35 each in the stock exchange on Thursday. — Vincent Mariel P. Galang
