MANILA, Philippines–Leading canned food producer Century Pacific Food Inc (CNPF) grew net profit in the first semester by 9 percent year-on-year to P1.7 billion on higher sales and improved margins arising from lower raw material prices and subdued operating expenses.
CNPF — the company behind consumer brands such as Century Tuna, Argentina, Swift and Birch Tree — grew sales revenues in the first six months by 6 percent year-on-year to P19.6 billion. This was mostly driven by the branded business, which grew sales by 12 percent year-on-year to a semestral record-high of P15.3 billion, equivalent to 78 percent of the total topline.
The sustained double-digit growth in the branded consumer segment was attributed to stable demand for marine and meat products, as well as the outperformance of its burgeoning milk business. Milk, which used to account for just 11 percent of total sales in 2016, now accounted for 22 percent of the business.
“We are relieved that growth in our core branded products was sustained in spite of the dampening effects of El Nino in some parts of our country. We also faced challenging base effects considering our significant increases in branded sales quarter after quarter. Nonetheless, despite the relative slowdown, we are pleased to see that these units continue to maintain their market leadership and post positive revenue increases year-on-year,” said Oscar Pobre, CNPF’s chief finance officer.
“We are also especially pleased to see investments in our emerging branded milk business bear fruit. It continues to outperform the market, as well as the rest of our business, despite having already doubled its topline over the last two years,” he added.