The Po family-led canning enterprise Century Pacific Food Inc. reported income in the first half rising 8 percent to P3.19 billion from last year’s P2.95 billion, pulled higher by exemplary performance in the second quarter.
Revenue rose 7 percent to P33.44 billion from P31.28 billion.
In the second quarter alone, revenue rose 9 percent to P17.82 billion from the previous year’s P16.48 billion, as branded businesses as Century Tuna and 555 sardines were up 15 percent.
Net income in the April to June quarter rose 10 percent to P1.7 billion from P1.54 billion.
“All things considered, we are grateful for the company’s performance in the first half of 2023. We attribute this to the all-weather nature of our portfolio, which has the flexibility to deliver in an evolving market landscape. Inflationary pressures are beginning to abate, which we take positively, but consumers are still feeling the crunch. Thus, we remain laser-focused on providing affordable and convenient food choices,” Richard Kristoffer S. Manapat, chief financial officer, said.
The business expects the branded segment to sustain its growth momentum, supported by resilient domestic demand even as uncertainties remain, especially in its overseas export market or OEM segment.
“Our gross margin outlook in the coming months is favorable, and we aim to reinvest these gains in demand generating activities, brand building, and innovation – all in line with our mission to provide affordable nutrition to Filipino households,” Manapat said.
The branded business include marine, meat, milk and other emerging segments targeted at the domestic market.
CNPF’s OEM tuna and coconut exports business reported a 7 percent decline in sales in the first half compared to the same period last year, given a high base and softer markets.
In terms of profitability, the company reported an uptick in its gross margin only in the second quarter of 24.4 percent, improving by 80 basis points versus the first quarter as commodities trended down and with the depletion of higher cost inventory carried over from the year before.
CNPF closed the first half with a gross margin of 24 percent, contracting by 110 basis points, the company said.
