VITARICH Corp. (VITA) on Thursday reported a net income of P129 million for 2022, up 44.21% from P89 million previously, owing to the growth in food and feed revenues.

“[The year] 2022 brought many challenges to families and business particularly as inflation intensified and food prices rose by double digits,” said Vitarich President and Chief Executive Officer Ricardo Manuel “Rocco” M. Sarmiento in a statement.

“Despite this difficult environment, our team at VITA worked tirelessly and delivered solid revenue growth and improved net income,” he added.

Revenues for 2022 totaled nearly P12 billion, a 23% increase year on year from P9.72 billion a year earlier.

The company also reported that its gross profit grew by 24% to P1.1 billion, while operating profit climbed by 21% to P223.2 million.

“The impact of cost inflation was partially offset by volume growth, pricing changes, and efficiencies,” the company said.

The food segment, which accounted for 52% of the total revenue, saw a 48% increase in revenue to reach P6.2 billion.

The company attributed the growth to the higher demand from food services and restaurants, as well as its newly released value-added products.

It launched new products under Cook’s Flavor Origins, including French Roast, Mediterranean Roast, and South African Roast.

Last year, the company expanded its operations in various areas such as Isabela and Bicol Region in Luzon; Samar and Leyte in Visayas; and Zamboanga City, Bukidnon, Marawi, Sultan Kudarat, and Sarangani in Mindanao.

Likewise, revenues in the feeds segment, which accounted for 44% of the total, inched up by 11% to P5.2 billion, backed by the 18% increase in pricing and 23% increase in input costs.

“The segment made significant progress towards operational milestones by increasing the number of distributors, megadealers, and retail feed outlets across Capiz, Aklan, and Central Negros over the course of the year,” the company said.

Meanwhile, farm revenues fell by 32% to P529 million due to the shortage of day-old chicks, which accounted for 4% of the overall revenues.

A fair value adjustment on biological assets of about P12.1 million was recognized as part of revenues and P1.1 million as part of cost of goods.

Vitarich said the cost of goods grew by 23% to P10.9 billion on higher sales volume and input costs.

The average cost of raw materials, such as wheat, soybean, and corn, surged by 25%, accounting for 70% of the total feed expenses.

The company also cited the pressure on handling and operating costs driven by the price increases in fuel, energy, and labor.

“Looking ahead, the company expects another year of strong revenue growth as well as better margins in 2023, encouraged by an expansion in its sales channels and the positive reception of the recently launched value-added products,” said Vitarich.

Vitarich is a poultry integrator and manufacturer of food products and animal feeds in the Philippines.

On the stock market on Thursday, Vitarich retained its shares at 63 centavos apiece. — Sheldeen Joy Talavera