Davao del Sur-based Broilers Club Inc., which produces poultry and eggs, was recently acquired by Vitarich Corp. for P280 million.
The purchase covers the 125,000 shares of stock of the company and the breeder farm facilities in Davao del Sur, Vitarich Corp. told the Philipine Stock Exchange (PSE) yesterday.
The company said its acquisition of Broilers Club is conditioned on a due diligence that will follow the signing of a memorandum of agreement (MOA).
“Should the conditions be fully satisfied and the intended transactions eventually materialize, the above-mentioned facilities will be used as VITA’s breeder farm, while Broilers Club will become a subsidiary,” the company said.
Vitarich’s purchase of Broilers Club will increase its breeder output by 8 percent.
Vitarich closed the first half of the year with a reported net income of P235 million, up 40.7 percent from P167.02 million last year.
Revenues reached P6.120 billion, up 1 percent from P6.05 billion.
The company said its topline was flat due to limited day-old chicks (DOC’s) availability, its core segment.
The company’s food segment, meanwhile, posted revenues of P3.58 billion, unchanged from last year, while the feeds segment recorded a P2.2 billion revenue, a 2.5 percent decline.
