Leading Philippine canned food manufacturer Century Pacific Food Inc (CNPF) boosted its nine-month net profit by 44 percent year-on-year to P2.16 billion, driven by the expansion of its branded food business, subdued input costs and the consolidation of a coconut subsidiary.
For the third quarter alone, net profits grew by 42 percent year-on-year to P798 million, CNPF disclosed to the Philippine Stock Exchange on Monday.
“Our branded businesses have maintained double-digit growth owing to our various sales and marketing initiatives, coupled with sustained consumer spending. Increasing demand for convenient, healthy, and affordable staples has benefitted our core offerings as well as recent product innovations,” CNPF chief finance officer Oscar Pobre said in a press statement.
For the nine-month period, revenues were up by 22 percent year-on-year to P21 billion.
The growth in revenues was supported by the growing coconut exports business and a recovery in original equipment manufacturer (OEM) tuna exports, which saw its third quarter revenue growth revert to double-digits.
The group also benefited from the consolidation of recently acquired coconut subsidiary, Century Pacific Agricultural Ventures Inc., a General Santos-based company that produces high value organic- certified and conventional coconut products for both export and domestic markets.
“At the same time, we are cautious given some slowdown which is likely affected by several factors. These include the absence of election-related spending and the delay in school openings into the second half. Another headwind was elevated coconut prices due to this year’s El Niño phenomenon,” Pobre said.
CNPF also unlocked higher earnings from efficiency gains and improved sales contribution from higher-margin products.
Year-to-date operating profit margins increased to 14 percent from 12 percent the year before, while net income margins grew to 10 percent from 9 percent last year.
Pobre added: “Despite some challenges, we remain optimistic that we will hit our targets and that Philippine consumption will remain generally healthy.”
The company expects to maintain its double-digit growth rates for the full-year 2016.
With a track record in brand-building that spans more than 30 years, CNPF has developed several household names that include Century Tuna, Argentina Corned Beef, 555 Sardines, Angel Milk, and Birch Tree Powder Milk.
More recently, CNPF has acquired the license to the Kamayan trademark for North America. The brand is one of the top names in the U.S. market for shrimp paste – a popular condiment in Philippine cuisine, locally known as bagoong. The purchase is seen to support the growth of the Company’s international branded business, as well as expand its presence into adjacent shelf-stable categories.