September 17, 2025
Vitarich set to acquire Davao breeder farm in US$4.9M strategic move
Vitarich Corporation, a Philippine poultry company, has approved the signing of a memorandum of agreement (MOA) with Broilers Club Inc.
(BCI) and its shareholders for the possible acquisition of breeder farm facilities in Davao del Sur, valued at up to ₱280 million (US$4.9 million).
In a disclosure, the company said the agreement covered "the purchase of any or all of the following: breeder farm facilities in Davao Del Sur, including land, improvements, equipment, 125,000 common shares of stock and advances of BCI shareholders in BCI, a private domestic corporation engaged, among others, in poultry and egg production."
The board approved the deal upon the recommendation of its organizational and business development committee during a special meeting on Sept. 1, 2025.
The transaction remains subject to the results of a due diligence review, to begin upon the signing of the MOA and must be completed within 90 days from the submission of the required documents by BCI and its shareholders.
"Should the conditions be fully satisfied and the intended transactions eventually materialise, the above-mentioned facilities will be used as VITA's breeder farm, while BCI will become a subsidiary of VITA," the company said.
It added that the transaction "is not seen to have any adverse effects on [Vitarich]'s operations. Rather (assuming conditions are met), the transaction is a strategic step to the current breeder farm operations of [Vitarich]."
The additional capacity is expected to produce "as much as an 8% increase in total [Vitarich] breeder output."
Vitarich posted a record net income of ₱235 million (US$4.11 million) in the first half of 2025, up 40.7% year on year, driven by higher chicken prices and improved efficiency in its feeds segment.
Revenues reached ₱6.12 billion (US$107.10 million), a marginal 1-% increase from the previous year, as the poultry industry grappled with a shortage of day-old chicks.
Despite flat revenues, gross profit rose 31 % to ₱921.9 million (US$16.13 million), lifting margins to 15 % from 11.6 % a year ago.
- The Manila Times
