Century Pacific profit as of Sept. hit P1.5B

Century Pacific Food Inc., the Philippines’ largest canned food company, said net income in the nine months through September this year rose 22 percent to P1.5 billion as it continued to see strong demand for its branded food products.

In a stock exchange filing, Century said total sales during the period rose 13 percent to P17.2 billion against P15.2 billion a year ago.

During the nine months ending September 2015, the branded business increased revenues by 15 percent on the back of better sales volumes across its marine, meat, and milk categories.

On the other hand, the non-branded tuna export business posted slower sales growth of 5 percent during the same period.

“The domestic branded business continued to be bolstered by effective sales and marketing programs. On the other hand, trading conditions were tough in the OEM global export tuna business,” Century Pacific’s chief finance officer Oscar Pobre said in the filing.

The company’s operating income for the nine-month period amounted to P2.1 billion, up by approximately 19 percent.

Operating income margins also expanded by 60 basis points versus the same period last year.

“The operating margin for the branded business as a whole remained stable, while that of the non-branded business improved due to better sales mix,” Pobre said.

The company maintained its net cash position and had zero interest bearing debt as of end September 2015.

Last Oct. 27, it announced the acquisition of an integrated coconut producer of high value organic-certified and conventional coconut products such as coconut water, virgin coconut oil, desiccated coconut, and the like.

The purchase price will total P4.5 billion and is expected to be earnings per share accretive in 2016, the company said.

Century Pacific remains primarily engaged in the development, marketing, and distribution of processed fish, meat, and dairy products.

Its brands include Century Tuna, Argentina Corned Beef, 555 Sardines, Angel and Birch Tree.