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    Letter To PSE - Press Release

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    Brandon Perez
    Vitarich Corporation reported record-high first quarter revenues of PHP 2.6 billion, a 19% increase from the previous year led by strong performance in its Foods segment. Cost of goods sold increased 30% due to higher raw material prices. Net income was PHP 40.8 million, down 78% year-over-year. Capital expenditures for the quarter were PHP 21.3 million focused on expanding facilities for the Feeds and Foods segments. The company expects full-year capital expenditures of PHP 80 million, reduced from prior estimates.

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    Letter To PSE - Press Release

    Uploaded by

    Brandon Perez
    21 views3 pages
    Vitarich Corporation reported record-high first quarter revenues of PHP 2.6 billion, a 19% increase from the previous year led by strong performance in its Foods segment. Cost of goods sold increased 30% due to higher raw material prices. Net income was PHP 40.8 million, down 78% year-over-year. Capital expenditures for the quarter were PHP 21.3 million focused on expanding facilities for the Feeds and Foods segments. The company expects full-year capital expenditures of PHP 80 million, reduced from prior estimates.

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    Letter to PSE - Press Release

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    Vitarich Corporation reported record-high first quarter revenues of PHP 2.6 billion, a 19% increase from the previous year led by strong performance in its Foods segment. Cost of goods sold increased 30% due to higher raw material prices. Net income was PHP 40.8 million, down 78% year-over-year. Capital expenditures for the quarter were PHP 21.3 million focused on expanding facilities for the Feeds and Foods segments. The company expects full-year capital expenditures of PHP 80 million, reduced from prior estimates.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    21 views3 pages

    Letter To PSE - Press Release

    Uploaded by

    Brandon Perez
    Vitarich Corporation reported record-high first quarter revenues of PHP 2.6 billion, a 19% increase from the previous year led by strong performance in its Foods segment. Cost of goods sold increased 30% due to higher raw material prices. Net income was PHP 40.8 million, down 78% year-over-year. Capital expenditures for the quarter were PHP 21.3 million focused on expanding facilities for the Feeds and Foods segments. The company expects full-year capital expenditures of PHP 80 million, reduced from prior estimates.

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    of 3

    May 13, 2022

    PHILIPPINE STOCK EXCHANGE


    9th Floor, Philippine Stock Exchange Tower
    28th Street corner 5th Avenue
    BGC Taguig City

    Attention :Ms. Alexandra D. Tom Wong


    OIC - Disclosure Department

    Re :Vitarich Corporation – Press Release

    Gentlemen:

    We respectfully send a copy of the press release on Vitarich Corporation’s 2022 First Quarter
    financial and operating results.

    Thank you.

    Very truly yours,

    VITARICH CORPORATION

    By:

    ATTY. MARY CHRISTINE DABU-PEPITO


    Assistant Corporate Secretary, Corporate
    Information Officer and Compliance Officer

    Main Office: Marilao-San Jose Road, Sta. Rosa 1, Marilao, Bulacan 3019 Philippines
    Tel. No.: (632) 8 843-3033
    Vitarich Delivers Record-High First Quarter Revenues

    May 13, 2022– Vitarich Corporation (PSE:VITA) achieves highest ever first quarter revenues of
    P2.6 billion, a 19% increase from a year earlier led by the strong performance of the Foods
    segment.

    “Two years since the pandemic began, supply chains continue to undergo significant
    restructuring,” said Rocco Sarmiento, President and CEO. “Businesses have increasingly
    diversified their supply chain risks. They are adding raw material suppliers to improve
    resilience. We are benefiting from that strategy. The growth in our Foods segment was driven
    by our hotel, restaurant, institutional (HRI) clients who have adopted enhanced risk
    management practices. These include finding suitable suppliers and facilitating knowledge
    and technology transfer to strengthen their partners and in turn, their supply chains.”

    Cost of goods increased 30% to P2.4 billion mostly from higher sales volume and prices of raw
    materials such as wheat, soybean, and corn which rose by an average of 29% compared to
    the year-ago period.

    Gross profit came in at P241.8 million, representing a gross margin of 9%. The rise in raw
    materials cost was partially offset by a favorable product mix due to higher revenue
    contribution from the Foods segment, which commands higher margin.

    Operating expenses increased 31% resulting in operating income of P74.2 million that reflects
    higher freight and handling cost due to fuel prices. As a percentage of revenues, operating
    expenses were maintained at 7%.

    Net income was P40.8 million with earnings per share of P0.013, down by 78% year-over-year
    but significantly higher than the previous quarter.

    Chief Financial Officer Melise Arnaldo added, “In a challenging inflationary environment, we
    continue to monitor developments in commodity prices. Despite these headwinds, our first
    quarter results demonstrated our adaptability leading to market success in penetrating HRI
    customers. A robust foundation creates a larger potential for long-term growth, allowing us
    to explore investments in expansion-related projects.”

    Capital expenditures in the first quarter stood at P21.3 million, including P12.0 million spent on
    the Feeds segment and P6.5 million on Foods. Spending on Feeds was mainly on warehouse
    construction in Davao and additional machinery and equipment at the feed mill plant.
    Foods investments were focused on improving the company’s dressing plant facilities in
    Bulacan.

    “We expect 2022 capital expenditures to be approximately P80 million, significantly reduced
    from prior estimates as we optimize existing resources,” said Arnaldo.
    Segment Highlights
    • The Foods segment surpassed that of Feeds to become the largest source of revenues at
    54%. The segment saw record first quarter results, with revenues growing 54% to reach P1.4
    billion. Sales volume soared 63% while average selling prices registered a 2% increase.
    Segment revenues were comprised of 61% HRI customers and 39% retail. As a percentage
    of total revenues, HRI made up 33%.

    The Foods segment sells chicken broilers, either live or dressed, to HRI customers,
    supermarkets, and wet markets.

    • Revenues from the Feeds segment comprised 41% of revenues following an increase of
    14% year-over-year. The segment posted higher volumes of 2% and selling prices of 12%.
    It continued to implement gradual increases in sales prices in response to raw materials
    and industry-wide price increases.

    The Feeds segment produces and markets animal feeds, health and nutritional products,
    and supplements to various distributors, dealers, and end users nationwide.

    • Revenues from the Farms segment accounted for the remaining 5% or P122.1 million. Fair
    value adjustments on biological assets amounting to P16.1 million was recognized as part
    of revenues and P41.9 million as part of cost of goods.

    The Farms segment is involved in the production of day-old chicks and pullets.

    PHP millions, except per share data


    3M 2022 3M 2021 Change 3M 2020 Change
    Revenues 2,617.3 2,207.1 19% 2,337.9 12%
    Operating income 74.2 246.8 -70% 150.7 -51%
    Net income 40.8 186.5 -78% 93.1 -56%
    EPS 0.013 0.061 -79% 0.030 -57%
    EBITDA 90.9 272.2 -67% 155.4 -41%

    ABOUT VITARICH CORPORATION


    Vitarich Corporation (PSE: VITA) is a pioneer, agribusiness partner, and leader in the animal
    feeds industry in the Philippines since 1950. Recognized with international standards for
    sanitation, food safety, and quality, VITA operates in three primary industry segments: feeds,
    foods, and farms—forging livelihoods and nourishing lives. For more information, visit
    www.vitarich.com or contact [email protected]

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