AGRINURTURE, Inc. (ANI) recorded a 74.8% decline in its net profit to P82 million for the second quarter despite higher revenues.
The listed firm said in a stock exchange disclosure on Monday that its net revenue during the quarter rose 14.9% to P1.11 billion. Cost of sales also increased 19.4% to P943.12 million.
For the first half, the company’s net profit dropped to P122.07 million from P356.99 million a year ago.
Net revenue for the six-month period rose 29% to P2.31 billion compared with the P1.79 billion in the previous year. Costs of sales also climbed 36% to P1.98 billion.
From the total net revenue, Philippine operations reached P1.07 billion, up 5.7%, while revenue from foreign operations improved 58.7% to P1.25 billion.
“For the first six months of 2021, Philippine operations contributed 46% while sales from foreign operations accounted for 54% of consolidated sales,” ANI said.
ANI said its export sales for the first half rose 9% to P883.1 million resulting from the stable selling prices of banana and coconut juice in the international market, continuous supply of raw materials, and higher demand especially in the Chinese market.
“Local distribution sales posted a decrease of 4.5% to P177.52 million for the six months from P185.87 million for the same period in 2020. Sales decreased significantly especially during the start of the enhanced community quarantine,” ANI said.
In effort to improve operations, the company launched its own e-commerce platform via its ANI Express website and mobile application, which allows customers to order the company’s products and delivered to them.
“The group is also launching new products such as plant-based meat, non-dairy ice cream, and big chill healthy drinks in cans for local and export distribution which are expected to start to record double digit growth for the rest of the coming quarters,” ANI said.
“Consolidated operating expenses for the first two quarters of 2021 amounted to P156.14 million down from P222.37 million for the same period last year, due to the pandemic issue where the retail and franchise and Hong Kong operations of the group were shut down since the start of implementation for a lockdown,” it added.
On Monday, shares of ANI at the stock exchange rose 0.33% or two centavos to end at P6.12 each. — Revin Mikhael D. Ochave
