Century Pacific Food, Inc., one of the leading food and beverage companies in the Philippines, has released unaudited first-quarter financial results this year showing consolidated revenue growing 16 percent from a year earlier while net income after tax increased 15 percent.
CNPF’s consolidated sales for the period amounted to P18.2 billion. The bulk of the sales came from its branded business composed of the marine, meat, milk, and other emerging segments. Amid an inflationary environment, CNPF’s branded segment posted a 10 percent annual growth rate, demonstrating a consistent growth performance.
Further improving CNPF’s topline is the recovery of its commodity-linked OEM tuna and coconut exports business. OEM saw a 49 percent annual surge in sales on the back of lower commodity prices, fueling demand, and a lower comparable base from the same period last year. Sequentially, the business also saw a 29 percent uplift from the previous period.
Chad Manapat, CNPF’s chief financial officer, said, “We are grateful to be able to deliver volume-led, double-digit growth, considering an operating landscape marked by consumer headwinds and soft markets. The all-weather business model and diversified portfolio of Century played a significant role in enabling us to deliver decent results for the period. On the branded side, our offerings come in different price tiers to serve varying consumer needs. We focused on providing our consumers with affordable sources of nutrition, keeping our brands relevant during this time. Meanwhile, the OEM exports business, which was challenged last year, is in recovery mode, given tailwinds in commodities.”
In terms of profitability, CNPF saw 1Q24 gross margin improve by 250 basis points YoY to 26.1 percent due to favorable downtrends in most of its input costs.
Gains were reinvested in demand generating activities and systems and process improvements.
As a result, net income after Ttax landed at P1.7 billion, posting an increase of 15 percent versus the first quarter of 2023. Net profit margin stood at 9.5 percent, largely sustained from the same period last year.
In the first quarter, CNPF launched its biennial flagship campaign, Century Tuna Superbods 2024: Best You Ever, an inclusive activation geared in promoting health, wellness, and fitness for everyone. Other campaigns highlighted value for money offerings in meat and new packs in milk emphasizing its nutritional credentials.
CNPF also announced a new expanded agreement with The Vita Coco Company, Inc., which includes additional incremental volumes amounting to approximately 90 million liters of coconut water over the next five years.
CNPF will be committing USD40 million to expand its coconut processing capacity, which will serve both its OEM and domestic coconut business with room for growth. This is expected to create 1,500 quality manufacturing jobs in Mindanao.
Manapat, in summary, said, “We are thankful for the first quarter’s healthy momentum, which we expect to normalize and align with our full year outlook as we move forward. Uncertainties remain, especially with inflation looming over our operating landscape and dampening consumer sentiment. Thus, we continue to operate with cautious optimism, aiming to grow the business sustainably in the low double-digit territory as we remain resolute in our mission of providing affordable nutrition to Filipino consumers.”
