Vitarich signs up to buy breeder facilities

Vitarich Corp. is acquiring breeder farm facilities in Davao del Sur for P280 million to expand business operations.

In a disclosure on Tuesday, Vitarich said its board approved the memorandum of agreement between the company, Broilers Club Inc. (BCI) and BCI shareholders.

The acquisition deal includes land, improvements and equipment as well as 125,000 common shares of stock and advances of BCI shareholders.

Vitarich said the transaction with BCI, a private entity engaged in poultry and egg production, is seen as a strategic step to improve breeder farm operations.

“The additional capacity is expected to produce as much as an 8 percent increase in total [Vitarich’s] breeder output,” it added.

The deal is subject to results of the company’s due diligence review, which will begin upon signing the agreement. It will conclude within 90 days from the completion of all the documents requested from BCI and its shareholders.

“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 BCI will become a subsidiary of [Vitarich],” it said.

Vitarich, engaged in producing feeds and operating a fully integrated broiler system, said the deal won’t cause any adverse effects on its operations.

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In the first half of 2025, Vitarich reported a net income of P235 million. This meant a surge of 40.7 percent. Revenues increased slightly to P6.12 billion.

“Growth was constrained by lower sales volumes as the poultry industry continued to face a shortage in day-old chicks. This was partially offset by the company’s entry into day-old pullets,” the firm said in its quarterly report.

Gross profit climbed by 31 percent to P921.9 million.