Canned food firm 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.
CNPF, led by the Po family, reported to the Philippine Stock Exchange that total revenue grew by 21 percent to P28.29 billion last year.
“We continue to benefit from increasing demand for affordable, convenient and healthy products,” CNPF chief finance officer Oscar Pobre said in a statement.
“While fourth quarter was slower than previous periods which benefited 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 the demand for original equipment manufacturer (OEM) tuna products in the latter part of the year.
Despite commodity headwinds late last year, CNPF saw overall profitability improve with a 39-percent rise in gross profit and a 32-percent increase in operating income in 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.
CNPF attributed these gains to favorable input costs for most of the year and its inventory hedging strategies.
He said “2017 would 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, including Century Tuna, Argentina Corned Beef, 555 Sardines, Angel Milk and Birch Tree Powder Milk.