CNPF nets P2.7B
The country’s leading canned food company Century Pacific Food Inc. (CNPF) grew its consolidated net income last year by 37 percent to P2.66 billion on higher earnings from its branded food business and the consolidation of its coconut subsidiary.
Total revenues grew by 21 percent to P28.29 billion last year, CNPF reported to the Philippine Stock Exchange on Wednesday.
“We continue to benefit from consumers’ increasing demand for affordable, convenient and healthy products,” CNPF chief finance officer Oscar Pobre said in a press statement.
“While fourth quarter was slower than previous periods which benefitted from an election bump, our branded businesses have maintained market leadership in core segments and we have likewise gained traction in emerging product categories,” Pobre added.
CNPF also reported a sustained recovery in demand for original equipment manufacturer (OEM) tuna exports during the latter part of the year, with revenues in that segment ending the year with positive growth.
Despite commodity headwinds during the latter part of the year, CNPF saw overall profitability improve with a 39 percent rise in gross profits and a 32 percent increase in operating income for the full-year 2016. This translated to gross and operating margins of 30 percent and 13 percent, marking a year-on-year expansion of 387 basis points (bps) and 106 bps, respectively.
The Company attributed these gains to favorable input costs for most of the year alongside its inventory hedging strategies.
Pobre added: “2017 will be a more challenging year for us as we face rising commodity prices. However, through brand and pricing management, efficiency gains, and cost reduction initiatives, we should be able to strike a balance between growing demand and improving profitability.
CNPF has developed several household names that include Century Tuna, Argentina Corned Beef, 555 Sardines, Angel Milk, and Birch Tree Powder Milk.
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