16 May 2025

Vitarich Corporation revenues up 8.8% in Q1 2025

Vitarich posts strong Q1 growth, driven by poultry investments, higher pricing, and strategic expansion, reinforcing its resilience amid supply challenges and rising costs.

Isa Tan

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Vitarich Corporation, a leading poultry integrator and manufacturer of animal feeds and food products in the Philippines, started 2025 with strong growth.

From January to March, the company reported revenues of nearly USD 57.3 million and a net income of USD 4.3 million, growing significantly from the same period in 2024.

“Vitarich delivered record net income and margin performance, outperforming our expectations. 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 opportunities to strengthen our business and drive sustained growth,” said CEO Rocco Sarmiento.

He added that the company expects to increase capital expenditure related to investments in poultry houses this year, aligning with its strategic priorities.

Revenue and profit growth

Revenue increased by 8.8% year-over-year, primarily driven by higher pricing of chicken products and the introduction of day-old pullets as a new revenue stream. However, lower feed sales and a limited supply of day-old chicks partially offset this growth.

Gross profit surged 2.5 times to USD 10.9 million, resulting in a gross margin of 19%, a marked improvement from 8.4% the year before. Lower raw material costs (down 14%) and reduced supply volumes contributed to this margin expansion.

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Operating profit soared to USD 6.3 million, a 14.5-fold increase from the previous year, despite operating expenses rising slightly due to higher freight and handling costs, merchandiser salaries, and marketing investments.

Segment performance

Foods: Revenues rose 26.9% to USD 39.9 million, driven by higher chicken prices amid ongoing supply challenges. This segment now accounts for 62.8% of total revenues, up from 59.6% last year.
Feeds: Revenue declined 4.7% to USD 18.2 million due to lower pricing and flat sales volume. Feeds now contribute 28.7% of total revenues, down from 36.3%.
Farms: Revenue more than doubled to USD 5.4 million, benefiting from the introduction of day-old pullets from Novogen, as well as improved selling prices. Farms now represent 8.5% of total revenues, compared to 4.1% last year.

Long term growth

To mitigate potential market disruptions, Vitarich has scheduled additional breeder orders for Q2 and Q3 2025 and ramp up capital expenditure on poultry house upgrades.

These initiatives will support the company’s long-term goal of strengthening its supply chain and enhancing operational efficiency across both farm and plant operations.

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