Leading canned food producer Century Pacific Food Inc. grew its net profit in the first half by 9 percent year-on-year to P1.6 billion on higher earnings from its branded food segment.
In the second quarter, net profit rose by 9 percent year-on-year to P838.9 million. The growth accelerated from the 4-percent growth in the first quarter.
CNPF’s gross margin stood at 26.4 percent as of end-June, flat from the level last year. This led to an increase in gross profit of 19 percent versus the same period last year.
“We saw branded sales surge during the first half, as we hit records in terms of volumes sold and distribution outlets reached. We believe local macroeconomic factors have favored demand for our products, which have wide appeal and reach a broad consumer base. We are likewise seeing sustained brand affinity as a result of our marketing efforts, and reaping the fruits of improvements in our distribution network made over the last 12 to 18 months,” Oscar Pobre, CNPF chief finance officer, disclosed to the Philippine Stock Exchange.
The firm’s revenue rose by 20 percent on strong branded sales. Revenue hit P19.3 billion, with branded business accounting for 75 percent of total.
Branded sales stood at P14.4 billion in the six months ending June, 25 percent up year-on-year.
The healthy performance was seen across each branded segment—marine, meat and milk—with each unit posting double-digit increases.
Revenue from exports to other branded producers of tuna and coconut products were also up by 9 percent to P4.9 billion in the first six months.—DORIS DUMLAO-ABADILLA