Century Pacific nets P1.9B

THE COUNTRY’S largest canned food company Century Pacific Food Inc. (CNPF) grew its net profit last year by 21 percent to P1.93 billion on a double-digit growth in branded food businesses.

Consolidated revenues were up by 14 percent year-on-year to P23.32 billion, fuelled by an 18-percent rise in the branded business that in turn offset the flat performance of non-branded tuna exports.

“Robust volume growth across our three branded segments- marine-meat and milk- continues to reflect rising Filipino purchasing power, greater demand for our products and increased recognition of our brands,” Century Pacific chief finance officer Oscar Pobre said.

CNPF’s brands include Century Tuna, Argentina Corned Beef, 555 Sardines, Swift, Angel, and Birch Tree, which have established market-leading positions in the Philippines and are growing a presence abroad.

Locally, the company said sales outside of Metro Manila outperformed as the company’s distribution infrastructure improved and modern retailers pursued aggressive expansion plans. Growth in the convenience store channel was particularly strong in light of new rollouts.

“So far, 2016 has been showing similar trends with good macroeconomic tailwinds, and possibly election related spending, benefitting us during the first three months of the year,” Pobre said.

Gross profit margins in 2015 remained stable at 26.6 percent as the company unlocked gains from declines in raw material prices and invested in product improvements to spur consumption. Nevertheless, operating margins continued to improve as growth in operating expenses were contained. This, alongside a reduction in financing costs, increased CNPF’s net income margins to 8.3 percent from 7.8 percent in the previous year.

The balance sheet remained healthy in the aftermath of the company’s acquisition of Century Pacific Agricultural Ventures Inc., an integrated producer of high-value organic-certified and conventional coconut products whose revenues and net income will contribute to CNPF’s beginning 2016.

Last year also marked CNPF’s first foray into can-making and cold storage with its new tin can factory already running at full capacity and the construction of its cold storage facilities on track for completion in the second quarter of 2016. Both capital investments are meant to manage and reduce input costs as the company braces for further growth.

This year, CNPF has set aside P1.1 billion for capital spending, bulk of which will go to plant and capacity expansion in anticipation of increased sales volumes across various segments.