VITARICH Corp. on Friday said related-party transactions with wholly owned subsidiary Barbatos Ventures Corp. (BVC) were estimated to reach about P925 million over a 12-month period under agreements aimed at improving poultry production efficiency.
The company said the transactions were entered into “for the efficient production of poultry, from raising/growing broilers to processing dressed chickens, to ensure that VITA’s poultry requirements are met while managing costs, thereby optimizing profitability of both parties.”
The estimated transactions cover June 2026 to May 2027 under two five-year contracts signed in 2024 and effective until June 30, 2029. The agreements involve contract growing operations and poultry dressing and processing services.
Vitarich said pricing under the agreements was about 20 to 30 percent lower than the cost of tolling with other dressing plant operators.
The projected transactions are equivalent to about 14.7 percent of the company’s P6.29 billion in consolidated assets as of Dec. 31, 2025, and do not involve any collateral.
The agreements were approved by shareholders in June 2024 after four directors abstained from voting at the board level because they also served as directors or officers of both Vitarich and BVC.
On Friday, shares of Vitarich rose by a centavo to close at P0.51 each.
