Century Pacific Food Inc., a leading food and beverage company, said Wednesday the ongoing recovery of its OEM exports segment and the consistent performance of its branded segment bolstered revenue in the first half by 15 percent to P37.7 billion.
Net income in the first half improved by 14 percent to P3.63 billion, benefiting from eased commodity costs.
In the second quarter alone, Century Pacific posted a 12 percent growth in net income to P1.91 billion as revenue increased 9.5 percent to P19.52 billion.
Revenue came predominantly from the branded business of Century Pacific, which includes the Marine, Meat, and Milk & Other Segments, serving primarily the domestic market. The OEM Exports segment, encompassing tuna and coconut exports, represents about 20 percent of the Group’s total business.
The OEM Exports segment, rebounding from a weak 2023, posted a 42 percent increase in sales for the first half of 2024, aided by favorable commodity costs and foreign exchange conditions. Conversely, the Branded Segment achieved a 7 percent year-on-year increase despite a challenging consumer environment.
“Our performance in the first half of the year reflects the resilience of our diversified business model. The OEM exports segment outperformed expectations, and our Branded business showed sustained growth amid ongoing inflationary pressures. We plan to reinvest margin gains to boost demand and provide greater value to our consumers, aligning with our mission of offering affordable nutrition,” said Chad Manapat, chief finance officer of Century Pacific.
Gross margins expanded by 210 basis points to 26.1 percent in the first half of the year.
Operating expenses were increased to support demand-generating activities, resulting in a stable earnings before interest, taxes, depreciation, and amortization margin of 14.3 percent. Profit margin held steady at 9.6 percent.
“We are pleased with our performance despite challenges, and we aim for low-double-digit growth in both sales and profits for the full year. We are committed to investing in growth while ensuring healthy returns for our stakeholders,” Manapat said.
In early July, CNPF declared a special dividend of P0.48 per share, doubling the total dividends declared in 2024. This follows the February declaration of dividends comprising a regular and special cash dividend of P0.24 each.
