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Vitarich Corporation
...tumatarget na ngayon ng income si VITA ah...dati hindi ito makatarget ng income, pangarap lang dahil under rehab pa, ngayon iba na siya Tongue

Vitarich sets P300-million income target as it plots nationwide expansion

VITARICH Corp. is targeting a net income of P300 million this year, as the agribusiness firm embarks on an aggressive nationwide expansion program.

“Vitarich’s record performance in 2016 effectively fuels the company’s growth plans for the coming year and beyond,” Chief Executive Officer and President Ricardo Manuel M. Sarmiento said in a roundtable interview in Taguig on Tuesday.

The listed agribusiness company expects revenues to hit P6 billion by the end of 2017. In 2016, Vitarich recorded a net income of P17.5 million, on the back of P5.1 billion in revenues.

For the first quarter, Vitarich earned P47.6 million, up by 25.3% year on year, following a 34% jump in revenues to P1.56 billion due to higher volume of chicken and animal feed.

Vitarich is looking to expand production volume by 30-40% this year, as it anticipates increased demand for food and animal feeds in the country.

The company, which exited corporate rehabilitation in September 2016, is allocating P80 million to support its expansion plan.

Vitarich is set to open a new animal feed mill in Davao by July, which will double their capacity to 232,000 bags a month from the current 93,600 bags.

“We will also double the capacity of our Davao dressing plant from 471,000 heads to 942,000 heads per month,” Mr. Sarmiento said.

Vitarich’s expansion in the Visayas will focus on automating and doubling the capacity of its Iloilo feed mill to an average of 187,200 50-kilogram (kg.) bags a month from the 93,600 50-kg. bags monthly last year.

Mr. Sarmiento noted the company is focusing on expanding in Visayas and Mindanao, where its operations are the strongest.

Meanwhile, Vitarich is still in the planning stages for the construction of a new feed mill in Luzon.

For Luzon, Vitarich’s toll manufacturing partners have also expanded, doubling the production capacity by 67% for animal feeds and 40% for aqua feeds.

In addition, Vitarich has recently secured certification for Halal products.

“We believe halal is a growing market. This is part of the improved quality for our brand, and we would like to have the opportunity to let them enjoy our products,” Mr. Sarmiento said, referring to the country’s Muslim community.

The certification would further prepare Vitarich for the forthcoming ASEAN integration, allowing it to be competitive amid a larger market.

Aside from the expansion in operations, Vitarich is set to increase manpower to around 550 this year, from a total of around 450 employees by the end of 2016.

After expansion, the firm expects to increase its market share by above 3% for chicken and over 1.5% for animal feeds. It currently has a 2.5% share of the chicken market, and between 1% and 1.5% for animal feeds.

Asked about possible plans to export products, Mr. Sarmiento said the company is currently focused on meeting the local demand, saying there is a big deficit in terms of locally produced products versus imported.

“There’s such a big demand locally right now... It’s very profitable to feed the country,” Mr. Sarmiento said.


source: http://www.bworldonline.com/content.php?...&id=145678
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IM PRETTY SURE THERE'S A GOOD REASON BEHIND WHY DIRECTOR SACRAMENTO IS BUYING. PERHAPS ANOTHER YEAR OR SO, 1B PROFIT IS LIKE EATING BANANA WITH PEANUT BUTTER. A REAL TURN AROUND STORY. Cool RolleyesCool
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Bug 
(05-30-2017, 06:09 PM)Onerockstar Wrote: IM PRETTY SURE THERE'S A GOOD REASON BEHIND WHY DIRECTOR SACRAMENTO IS BUYING. PERHAPS ANOTHER YEAR OR SO, 1B PROFIT IS LIKE EATING BANANA WITH PEANUT BUTTER. A REAL TURN AROUND STORY. Cool RolleyesCool

IBALIK NA SA 3 KESOS, PAMBILI NG MERALCO.CoolBig GrinCool
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BALIK ₱3?
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Under Corporate Rehab??? nut nut nut
Bullish or Bearish, I will Buy .... Autem Neque Me Invito Tactiost! \m/
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...graduate na 'to yata sa corporate rehab duck dodgers

...actually dapat magpasalamat VITA sa current state ng economy ng Pinas kasi consumers have become stronger and stronger allowing for more and more purchases of farm produce products, the momentum of the economy guarantees VITA's growth kaya bili na ng VITA guys

Vitarich plans debt-to-equity swap

VITARICH Corporation is looking to convert the company’s debts into equity, as it hopes to see a healthy balance sheet by next year.

The Bulacan-based feeds and livestock company said the debt-to-equity conversion, its second in four years, will be worth P400 million.

“By paying the company’s remaining debt with shares, the company will conserve much-needed cash for its operation and its expansion plans. Also, paying the remaining debt with shares instead of doing a ‘dacion’ of its core assets will allow Vitarich to benefit from the rental income and future increases in real estate value of the non-core assets,” Vitarich Chief Executive Officer and President Ricardo Manuel M. Sarmiento said.

He said Vitarich shareholders have also approved the plan to undergo quasi-reorganization, allowing it to eliminate the deficit which, as of end-2016, stood at P2.417 billion.

“After the quasi-reorganization abolishes the company’s deficit, Vitarich can then already declare dividends to its shareholders from the unrestricted retained earnings that will subsequently be generated,” Mr. Sarmiento said.

At the same time, Vitarich is aiming to sustain the growth momentum it has seen so far this year.

For the first nine months of 2017, Vitarich recorded P107 million in consolidated net income, 21 times higher than the P5 million during the same period a year ago, driven by 27% increase in sales revenues.

Mr. Sarmiento said the company set aside a capital expenditure of P130 million for 2018.

Vitarich is also planning to build another feed mill, expected to produce 20 tons per hour, in Luzon.

“In Batangas, we also have plans to put up our own feed mill. We’re estimating it be to around P400 million. We hope to groundbreak by mid-next year, it will take about 14 months for the construction so if we’re successful in groundbreaking by June it will be operational by fourth quarter in 2019,” Mr. Sarmiento said


source: http://bworldonline.com/vitarich-plans-d...uity-swap/
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Vitarich wants to focus on domestic market

Listed animal-feed manufacturer and poultry producer Vitarich Corp. (Vitarich) would rather focus on supplying chicken to Filipino consumers than export its products, as it sees more growth opportunities in the domestic market.

Vitarich President and CEO Ricardo Manuel Sarmiento said the company wants to help wipe out the annual shortfall in Philippine poultry production, which it pegged at around 20 percent.

“Our estimate is out of the total requirement of the Philippines, 20 percent is still imported so there’s a lot of room to grow in terms of producing chicken, which would also benefit Filipino farmers,” Sarmiento told reporters in a news briefing on December 12.

“I have dreams of tapping the export market but local supply is not enough. So, our focus is to supply the local market,” he added.

The country’s meat imports rose to its highest in 2016 at 646,503.7 metric tons (MT), 10.28 percent higher than 586,263.9 MT recorded in 2015, according to the latest data from the Bureau of Animal Industry (BAI).

Data from the BAI showed the country’s chicken imports expanded by 18.44 percent last year. Purchases reached 234,742.76 MT, higher than the 2015 record of 198,193.29 MT.

Sarmiento said the company is also looking into hog raising instead of selling products abroad should it decide to expand its business in the future.

“We are developing more chicken-based products, that’s our main focus now. Of course, in the future, I would like to go into producing hogs and other fish products,” he said.

The Vitarich CEO said he expects the company’s market share for poultry products to reach 30 percent this year.

The company’s net income in January to September reached  P107 million, 21 times higher than the P5 million it recorded in the same period last year.

Sarmiento projected that the company’s income would expand by at least 30 percent next year on the back of higher production.

“We are making sure that we will sustain our momentum next year,” Sarmiento said. “As I’ve said, we have new facilities with higher capacities to sustain our growth and these will all be ready by 2018.”

This year, Vitarich inaugurated a P250-million state-of-the-art feed mill in Panacan, Davao City, which has a capacity of 100,000 bags per month.

The company also completed the expansion and automation of its feed mills in Iloilo, increasing capacity to 187,200 bags per month, from the current 93,600 bags per month.

Vitarich has expanded its Davao dressing plant, which will effectively double capacity to 942,000 heads a month.

Sarmiento said Vitarich is planning to break ground for a P400-million feed mill in Central Luzon with a capacity of 20 metric tons per hour by mid-2018. The mill would be up and running 14 months after groundbreaking.

The company allocated about P130 million as capital expenditure (capex) for 2018. The amount is 62.5 percent higher than its P80 million capex this year. Sarmiento said the bulk of the company’s capex for next year would be used to support its warehouses and feed mills.


source: https://businessmirror.com.ph/vitarich-w...ic-market/
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Hi all,

Firstly, stay away from VITA. Their PE is 37X and P/B is 5X. The P300M target is not true. It is P150M. You can ask them.

Secondly, there will be another debt to equity swap which means more dillution hence the valuations will even worsen from the current 37X PE.

Thirdly, minority shareholders are not protected because mg't doesn't care about them getting diluted.
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I would like revive a rubbish stock called VITA (Vitarich). Yes some of you made money as they came out of bankruptcy. Sadly they did it out of debt to equity swaps at the cost of minority shareholders (you and me). And yet their valuations are way too expensive. P/E is 37X and Price to Book is 5X! I don't know how to attach the bisbuzz from the Phil Daily Inquirer Today but it is published there.
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