AgriNurture profits decline to P9.56M

LISTED AgriNurture, Inc. on Tuesday reported that its attributable net income fell to P9.56 million in the third quarter from P30.65 million a year ago.

In a regulatory filing, the company said its revenues dropped by 11.6% to P761.23 million from P860.92 million in the same period last year.

Retail and franchising sales for the period went up by P54.95 million from P36.99 million last year after the opening of new company-owned and franchise stores during the quarter.

Cost of sales fell to P669.6 million, an 11.5% decline from the P756.97 million reported the prior year.

The company reported that its attributable net income for the nine months ending September decreased by 82.6% to P15.4 million from P88.4 million a year earlier.

It attributed the decrease to a decline in export revenues to China and the United States, an increase in wages, rising logistics costs, and the non-recognition of change in the fair value of its biological assets during the period.

The company’s revenues, likewise, declined by 6% for the nine-month period to P2.65 billion from P2.82 billion last year.

It added that Philippine operations contributed 42% of the company’s total sales, while 58% were from foreign operations.

The company reported a decrease in the export of bananas and various fresh and processed goods to P72.11 million, 32% lower than the prior year.

This was due to a slowing of demand in the Chinese market and “increasing competition from other Southeast Asian suppliers.”

Local sales went up by 59% to P332.85 million from P208.97 million last year, driven by an increase in outlets opened, higher pricing, and stronger demand for rice and fresh produce.

The company’s cost of sales declined by 4.5% to P2.33 billion from P2.44 billion in the same period last year due to a drop in purchase costs.

On Tuesday, AgriNurture shares went up by 0.49% or one centavo to close at P2.06 apiece. — Adrian H. Halili