Vitarich Corporation (VITA), a leading poultry integrator and manufacturer of animal feeds and food products in the Philippines, announced robust financial results for the first quarter ended March 31, 2025. The company reported a strong start to the year with revenues of ₱3.196 billion, a net income of ₱241.6 million, and earnings per share of ₱0.079.
Rocco Sarmiento, Chief Executive Officer of Vitarich, commented, “VITA delivered record net income and margin performance, outperforming our expectations. This performance boosts our outlook and reinforces our confidence in navigating an evolving macroeconomic environment.”
First quarter revenues grew by 8.8% year-over-year to ₱3.196 billion, primarily fueled by higher nationwide pricing of chicken products and the introduction of a new revenue stream from day-old pullets. This growth was partially offset by lower sales volumes and reduced pricing for feeds due to the current limited supply of day-old chicks.
The company’s profitability saw significant improvement. Gross profit surged to ₱607.5 million, approximately 2.5 times higher than the ₱246.0 million reported in the same period last year. This resulted in a strong gross profit margin of 19.0%, up from 8.4%, supported by higher pricing and a 3.8% decrease in the cost of goods sold due to lower volumes and a 14% decline in raw material costs.
Operating profit also experienced a substantial increase, reaching ₱349.8 million, a 14.5-fold jump from the ₱24.1 million in the prior year. While operating expenses slightly increased to 8.1% of revenues from 7.6%, primarily due to higher freight and handling costs, merchandiser salaries, and training and marketing expenses, the operating margin significantly improved to 10.9% from 0.8%. This improvement reflects strong gross margins, effective cost management, and operational efficiencies across the company’s farms and plants.
Net income reached a record ₱241.6 million, with earnings per share of ₱0.079, marking a remarkable 389-fold increase over the prior year and exceeding the company’s internal forecasts.
Looking ahead, Mr. Sarmiento stated, “As we move through the year, short-term disruptions such as the shortage of day-old chicks may continue but we remain focused on pursuing a range of opportunities that we believe will further strengthen our business and fuel sustained growth in the years ahead. Based on current visibility, we have scheduled additional breeder orders for the second and third quarters to manage supply disruptions. We also expect to increase capital expenditure over the course of the year related to our investments in poultry houses, in line with our strategic priorities.”
Segment Highlights:
- Foods: Revenues accelerated by 26.9% to ₱2.222 billion, driven by higher prices amidst the ongoing supply challenges for day-old chicks that impacted volumes. The Foods segment now accounts for 62.8% of total revenues, up from 59.6% in the prior year.
- Feeds: Revenues decreased by 4.7% to ₱1.017 billion, reflecting lower pricing and flat comparable sales volumes. The Feeds segment contributed 28.7% to total revenues, down from 36.3%.
- Farms: Revenues more than doubled to ₱301.7 million, benefiting from the introduction of day-old pullets from NOVOgen and a higher net gain on the fair value of biological assets due to improved selling prices. The Farms segment now represents 8.5% of revenues, up from 4.1%.
