Vitarich earnings rise 18% to P107M - BusinessWorld Online

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VITARICH Corp. on Thursday announced that its second-quarter net income attributable to equity holders rose by 18.2% to P106.91 million from P90.42 million. READ:

“We delivered record-breaking revenue performance even in the face of challenging macroeconomic headwinds. Through volume gains, responsible price increases, and operational efficiencies, we limited the impact of higher input costs on our profitability,” President and Chief Executive Ricardo Manuel M. Sarmiento said.

“Similarly, the recent surge in fuel, energy, and labor costs impacted cost of sales as well as operating expenses, which also rose 25%. As a result, gross profit was P591.9 million, representing a gross margin of 11% compared to 14% in the first half of 2021, and operating profit was P241.9 million,” it added.

The segment added a total of 13 HRI customers including some leading fastfood chains, providing custom product and menu development suited to customer specifications, quality, and cost requirements. “Specifically, pricing increased 14% compared to the year-ago period versus input costs at 23%. As expected, pricing had an unfavorable impact on volume which slightly contracted by 7%,” it added.

“The marked increase in feed input costs exerted a significant strain in reaching optimal feed conversion ratios targets. As a result, some poultry growers cut costs either by reducing volume or using feed input alternatives, while some carried out price hikes and passed on the increased cost to consumers,” Vitarich said.

 

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