Vitarich registers 145% surge in Q1 operating income

MANILA, Philippines – Vitarich Corporation, the animal feeds and livestock company, recorded a 145% growth in its operating income for the first quarter of 2015, versus its operating profit in the same period last year.

In July 2014, the firm is seeking early exit from rehabilitation, as it significantly reduced its debt and increased its authorized capital stock 8 years ahead of its 15-year rehabilitation plan. (READ: Recovering Vitarich eyes rehab exit by Sept)

Vitarich is in the business of formulation, production, storage, and marketing of various animal and aqua feeds, as well as supplying fish and poultry products to local restaurant chains.

In a disclosure to the stock exchange, Vitarich registered an operating income of P21 million ($472.03 million) for the previous quarter of the year, an increase from last year’s loss of P48 million ($1.08 million) for the same 3-month period.

Vitarich and its subsidiaries also registered a 12% increase in the consolidated sale of goods, from P613 million ($13.78 million) in the first quarter of 2014 to P685 million ($15.40) for the first 3 months of this year, attributed to an increase in sales volume of animal and aqua feeds.

“Our first quarter results show that we are on track. We’ve seen a higher feed volume that resulted from higher demands, and we owe it in part to better innovations within the company and its products,” said Vitarich Chief Operating Officer (COO) and Executive President Ricardo Manuel Sarmiento.

Turning point

“We believe that 2015 is the turning point for Vitarich. We also believe that this turnaround came because we have created and applied innovations to how we run the business,” Sarmiento adds.

The Vitarich executive also noted that the company has had better buying power of its raw materials, increased efficiency of its chickens allowing it to stay competitive with the industry, increased performance and volume standards, better competitiveness due to cost efficiency, as well as improved inventory management.

By innovation, Sarmiento said the firm improved feeding system in the dairy area, looked into helping farmers in all aspects of production, such as providing the concentrate; analyzing inputs; lab analysis; and providing seminars on how to properly feed and take care of the livestock.

Sarmiento explained, “these measures have become so effective that from a standard production of 12 liters of milk a day, we’re now enjoying a 50% increase from our previous output.”

“Vitarich feeds are customized based on the breed because each variety of chicken has its own dietary specifications,” he added. With this innovation, Sarmiento said it has the capability to customize their animal nutrition system – a step toward improving the overall efficiency of its animal feeds and its livestock.

Established by brothers Feliciano, Lorenzo, and Pablo Sarmiento in 1950, Vitarich has since been a major link in the Philippines’ farm-to-consumer supply chain. – Rappler.com