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 revenue 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, or 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 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 Niño in some parts of our country. We also faced challenging base effects considering our significant increases in branded sales quarter after quarter,” said Oscar Pobre, CNPF’s chief finance officer.
In the first six months of the year, Pobre said CNPF had benefited from softer input prices in most parts of the portfolio.
Net income margins improved to 8.7 percent in the semester from 8.5 percent a year ago. —DORIS DUMLAO-ABADILLA