Century Pacific Food Inc., the food canning company led by the Po family, on Tuesday reported income rising 6 percent last year to P5 billion from the previous year’s P4.67 billion on higher sales of its branded products.
Revenues grew 13 percent to P62.2 billion from the previous year’s P54.71 billion, buoyed by its branded business, which formed the bulk of its sales.
The branded business, composed of marine, meat, milk and other emerging businesses, grew 16 percent from the previous year on the back of resilient domestic demand.
The company said its OEM (original equipment manufacturer) exports business, such as its unbranded canned tuna, posted a 4 percent increase over the previous year, despite supply chain pressures presented by the war in Ukraine.
Its exports business saw improvements in the second half of 2022 due to favorable movements in freight rates, forex, and commodities.
“Century’s all-weather portfolio did much of the heavy lifting in 2022, whether from a topline or gross margin perspective. On the sales side, our affordable and accessible brands like Fresca and Lucky 7 allowed the company to serve the needs of value-seeking consumers, especially during an inflationary time,” Richard Kristoffer S. Manapat, the company’s CFO, said.
“We saw local demand remain resilient in a year where more Filipinos gained employment because of the reopening. We recognize that consumers had to prioritize spending and are humbled to see that they continue to patronize our brands, leading to double-digit growth,” he said.
Against rising input costs, CNPF cited gross margins averaging 23.1 percent last year, softer by 20 basis points compared to the prior year. The company also reported higher logistics costs that pushed operating expenses as percentage of sales also higher to 14 percent.
“We have been navigating through choppy waters for quite some time but have been fortunate enough to deliver a consistent growth performance year-on-year. Our strong cash generation allows us to continuously fuel long-term growth, invest in sustainability, and provide our shareholders with satisfactory returns,” Manapat said.
In 2022, CNPF spent P1.4 billion as capital expenditures and completed the 50 percent expansion of its coconut OEM facility.
“We approach 2023 with cautious optimism, focused on delivering topline and bottom line growth but cognizant of our consumers’ plight, considering persistent inflationary pressures. We have some inventory overhang from 2022, which may cause bottom line to lag in the first half, but expect margin improvements as commodities ease,” Manapat said.
