MANILA, Philippines - Listed animal feeds and livestock firm Vitarich Corp. widened its loss last year as it continued to seek ways to get out of corporate rehabilitation.
Vitarich reported a net loss of P578.21 million last year, up 44.2 percent from the P400.97-million net loss it incurred in 2013.
The firm’s consolidated sales also declined 14.74 percent to P2.37 billion from the previous year’s P2.78 billion.
“The group has incurred losses resulting into a deficit of P2.45 billion and P2.49 billion as of Dec. 31, 2014 and 2013 respectively, mainly because of interest expense on its restructured debt and entered into a debt to equity conversion with the company in 2013. Moreover the company disposed off its major feed mill in 2014 to further reduce the debt and to generate necessary working capital,” Vitarich said.
The company, however, said it managed to reduce operating expense last year to P377.98 million from P445 million the previous year.
Vitarich last year started seeking court approval to terminate a 15-year corporate rehabilitation process on the back of a regained market competence and substantial debt reduction.
“The group is focusing towards establishing operational partnerships, strengthening its core products by improving quality standards, continuing its cost reduction program and revisiting customers by improving quality standards, continuing its cost reduction program and revisiting customer and supplier terms to increase sales and to improve operating results,” the firm said.
“As a result of the implementation of these programs, the group generated operating income of P24 million the final quarter of 2014, P14.4 million in January and February 2015, and is projecting an operating income of P6.3 million in March 2015,” Vitarich added.
Vitarich is a Philippine leader in the poultry industry but has been under corporate rehabilitation since May 2007 due to tight liquidity problems resulting from the Asian currency crisis and the avian flu outbreak in 2003.
The company’s debts stood at P3.23 billion at the height of the financial crisis.
Incorporated in 1962 by the Sarmiento family, Vitarich is engaged in the production and distribution of various poultry products such as live and dressed chicken, day-old chicks and animal and aqua feeds, among others.
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