VITARICH CORP. turned profitable in the first quarter as the feed, farm and food company reported a net income of P93.1 million, reversing losses of P172.7 million in the same period last year.
In a disclosure to the stock exchange on Tuesday, the company registered revenues of P2.34 billion, up 25.8%. It posted a net income before tax amounting to P132.99 million, a turnaround from a pre-tax loss of P173.37 million a year ago.
Vitarich Chief Executive Officer and President Ricardo Manuel M. Sarmiento said the first quarter performance provided a cushion for the company against the effects of the coronavirus disease 2019 (COVID-19) pandemic.
“We continued our lifetime professional partnership with business partners providing the necessary support in these difficult times. Our feeds sales stepped up by fulfilling requirements of customers whose previous supplier had to scale down or close. New sales channels for our products are being developed,” he said in the disclosure.
“Our strategy of focusing on efficiency and quality has been working despite the challenging chicken market. Our shift towards hotel, restaurant and institutional clientele has been working well for us. Our profitability ratios increased,” he added.
He said that the company’s profits during the last quarter of 2019 was carried over in January this year, which amounted to P69.39 million, and P46.43 million in February.
In March, Vitarich’s income fell to P17.16 million due to the coronavirus disease 2019 pandemic, according to Mr. Sarmiento.
He said Vitarich had made precautionary measures at its place of business and operations had continued despite the pandemic.
“None of our employees have been diagnosed as COVID-19 positive as of date. Vitarich is adapting to the new normal, while keeping the core values of quality and excellence at heart,” Mr. Sarmiento said.
On Tuesday, shares in Vitarich rose 4.88% or P0.04 to close at P0.86 per piece. — Revin Mikhael D. Ochave