May 8, 2009

Vitarich Corp., listed producer and wholesaler of poultry and animal products in the Philippines, ended last year with a loss again.

 

It did not succeed to gain from the reduction of its debts due to the approval of its rehabilitation plan in 2007.

 

According to documents from securities regulators, Vitarich, whose shares have been suspended from trading since the company filed for rehabilitation in 2006, posted PHP264.18 million in losses last year from a profit of PHP769.72 million in 2007.

 

The firm's margins were boosted then by the recognition of PHP859.67 million in income from the court's approval of the company's rehabilitation proposal. Its losses reached PHP210.85 million in 2006.

 

Vitarich and its subsidiaries ended 2008 with sales up by 12.45 percent to PHP2.76 billion from PHP2.45 billion.

 

The firm said gross profit margins declined to 36 percent from 2007 level, also on the account of higher raw materials cost that affected the company's performance in 2008, adding that effort to improve margins was made by increasing prices, but were not sufficient to cover the rise in material cost.

 

Vitarich said since it remains under rehabilitation, it plans to continue focusing on core businesses and improving efficiency of its manufacturing facilities, also planning to intensify its marketing efforts this year to expand its customer base and boost revenues.

 

In 2006, Vitarich filed a petition for 15-year debt relief after having difficulty paying off loans and liabilities amounting to PHP3.23 billion.

 

The company blamed its financial woes to the slowdown in its chicken and poultry feed business due to the Asian financial crisis of 1998 and the bird flu outbreak in 2003.

 

Vitarich is engaged in animal feed and livestock operations in plants located throughout the Philippines.

 

The company produces pig, poultry, aqua, and other specialty feed requirements for its livestock operations.

                             

US$1 = PHP47.418 (May 8)